Alphabet Inc's revenue up 2.61% YoY to $69,787 million in Q1 FY23

Alphabet Inc, the parent company of Google and YouTube, has reported a revenue of $69,787 million in Q1 of FY23, up 2.61% from the corresponding quarter of the previous year wherein it had reported $68,011 million in revenue.

However, the advertising revenue of the tech giant came down by 0.20% on a YoY basis and stood at $54,548 million in the quarter ended March 31, 2023, juxtaposed to previous year’s Q1 ad revenue which stood at $54,661 million.

Of this year’s ad revenue, Alphabet has clocked in $40,359 million from Google Search and Other, $6,693 million from YouTube Ads and the remaining $7,496 million from Google Network.

While revenue from Google Network has gone down by 8.29%, YouTube’s revenue fell by 2.56%, it was Google Search and Other’s revenue grew by 1.87%.

The tech giant has reported an Operating Income of $17,415 million in Q1 FY23, which is a decline of 13.33% from $20,094 million it clocked in during the corresponding quarter of the previous year. The Net Income of the company also fell from $16,436 million in Q1 FY22 to $15,051 million in Q1 FY23, marking an 8.43% decline on a YoY basis.

Moreover, the Sales and Marketing expenses have gone up 12.15% YoY and stand at $6,533 million in Q1 FY23, as compared to $5,825 million in the corresponding quarter of the last fiscal.

As per Alphabet, the quarterly update for Q1 FY23 also reflects $2.6 billion in charges related to reductions in its workforce and office space; among other depreciation related expense; and a shift in the timing of their annual employee stock-based compensation awards resulting in relatively less stock-based compensation expense recognised in the first quarter compared to the remaining quarters of the year. 

“The shift in timing itself will not affect the amount of stock-based compensation expense over the full fiscal year 2023,” it clarified in its filing.

Ruth Porat, CFO, Alphabet and Google, said, “Resilience in Search and momentum in Cloud resulted in Q1 consolidated revenues of $69.8 billion, up 3% year over year, or up 6% in constant currency. We remain committed to delivering long-term growth and creating capacity to invest in our most compelling growth areas by re-engineering our cost base.”

Sundar Pichai, CEO, Alphabet and Google, also said, “We are pleased with our business performance in the first quarter, with Search performing well and momentum in Cloud. We introduced important product updates anchored in deep computer science and AI. Our North Star is providing the most helpful answers for our users, and we see huge opportunities ahead, continuing our long track record of innovation.”

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