- In the 2nd quarter of 2022, Google Cloud recorded a loss of $858, compared to $591 million in the second quarter of the previous year.
- Google’s advertising revenue, including Google Search, YouTube, and Google Network, increased from $50 billion to $55 billion year-over-year.
- Despite the $8 billion increase in the company’s revenues, its net income decreased by approximately $1.5 billion year-over-year.
Google‘s parent company, Alphabet reports financial results for the second quarter of 2022. While the company’s overall revenue increased at the end of the quarter, the company’s profits dropped from $18.5 billion to $16 billion. The report also shows that Google Cloud recorded a loss of $858 in the second quarter. In 2021’s second quarter, Google Cloud’s loss was $591 million.
Not profitable yet
Despite the loss, Google is still one of the most important players in the sector, along with Microsoft, Amazon, and Oracle. The company stated that the cloud is still a substantial market opportunity as most companies are still in the early stages of digital transformation.
In the second quarter, Google Search ads made the biggest contribution to the overall revenue with $40 billion, an increase from $35 year-over-year. YouTube ads increased from $7 billion to $7.3 billion and Google Network’s revenue increased from $7.5 billion to $8.2 billion. In total Google’s advertising revenue in the second quarter increased to $56 billion from $50 billion year-over-year. Sundar Pichai, CEO of Alphabet and Google said;
« In the second quarter our performance was driven by Search and Cloud. The investments we’ve made over the years in AI and computing are helping to make our services particularly valuable for consumers, and highly effective for businesses of all sizes. As we sharpen our focus, we’ll continue to invest responsibly in deep computer science for the long-term. »