Alphabet Inc on Thursday reported its fiscal year 2022 earnings report. It stated that Google’s total ad sales slid by 3.6% to $59 billion from $61.2 billion a year ago. Google’s parent company Alphabet reported that YouTube’s ad sales slipped by 8% to $7.96 billion from $8.63 billion a year ago.
In a conference call with analysts, Philipp Schindler, Google’s Chief Business Officer said a “pullback” in spending by advertisers amid a more challenging economy as well as foreign-exchange headwinds impacted sales.
Alphabet has reported Q4FY22 total revenue of $76.05 billion, up from $75.3 billion a year ago.
Alphabet’s revenue, minus traffic-acquisition costs (TAC), was $63.12 billion in comparison to $61.9 billion a year ago.
Google Cloud brought in $7.32 billion, compared with $5.54 billion last year.
Google’s Search and Other revenue stood at $42.60 billion, down 2% from the year prior, according to the report shared. Executives said it saw a further pullback in spending by some advertisers in Q4 over Q3.
Sundar Pichai, CEO of Alphabet and Google, said, “Our long-term investments in deep computer science make us extremely well-positioned as AI reaches an inflection point, and I’m excited by the AI-driven leaps we’re about to unveil in Search and beyond. There’s also great momentum in Cloud, YouTube subscriptions, and our Pixel devices. We’re on an important journey to re-engineer our cost structure in a durable way and to build financially sustainable, vibrant, growing businesses across Alphabet.”
In January 2023, Google announced a reduction of our workforce of approximately 12,000 roles. Commenting on the same, Alphabet said, “We expect to incur employee severance and related charges of $1.9 billion to $2.3 billion, the majority of which will be recognized in the first quarter of 2023.”