Good news for Alphabet, the parent company of Google, which announced an 11% year-over-year increase in its revenue in its third-quarter 2023 results presentation, from $69.062 billion (3Q 2022) to $76.693 billion (about $72.4 billion euros).
Advertising on Google Search remains the company’s main source of revenue, with $44.026 billion, up 11.35% from the same period last year.
As you can see in the table, the only line item that sees its revenue reduced is that of the Google Network, the display network that includes ad space on websites. In this case, revenue falls by 2.58%, from $7.872 billion to $7.669 billion.
On the other hand, the area that grew the most was Google Cloud, where revenue reached $8,411 million, with a 22.5% year-on-year increase.
Ruth Porat, President and Chief Financial Officer at Alphabet, as well as Chief Investment Officer, said: “The fundamental strength of our business was again evident in Q3, with revenues of $77 billion, up 11% year over year, driven by ongoing strength in Search and YouTube, and momentum in Cloud. We remain focused on prudent capital allocation to deliver sustainable financial value.”
The company’s results soar
In any case, the most striking data in Google’s quarterly earnings presentation document comes from the results section. The company generated $19.689 billion in net income in the past quarter, a spectacular increase of 41.55% from the same period last year.
This growth in earnings is based on three aspects: the aforementioned growth in its advertising revenue, the radical improvement in the results of its Cloud area (which went from losing $440 million to earning $266 million) and, to a much lesser extent, adjustments to its workforce: Alphabet laid off 12,000 workers worldwide (approximately 6% of its global workforce), joining other tech giants that have announced cuts in recent times, such as Meta, Twitter, Salesforce or Microsoft.
This measure had, in fact, impacted the first-quarter results, when the company acknowledged that the workforce and office reduction had resulted in a $2.558 billion (about €2.3 billion) expenditure. Of this figure, $1.994 billion corresponded to severance pay and related charges, while the remaining $564 million was due to office space reductions. In the third quarter, the company only had to face employee severance and related charges totaling $86 million.
