- Company News
- Tech Sector News
GOOGL beat on earnings, missed on revenue
By
Nathan Reiff
:max_bytes(150000):strip_icc()/reiff_headshot-5bfc2a60c9e77c00519a70bd.jpg "Google (Alphabet) Q2 2022 Earnings Report Recap (1)")
Full Bio
Nathan Reiff has been writing expert articles and news about financial topics such as investing and trading, cryptocurrency, ETFs, and alternative investments on Investopedia since 2016.
Learn about our editorial policies
Updated July 28, 2022
01:17 PM EDT
Key Takeaways
- Google Cloud revenue fell short of analysts' expectations.
- Google Cloud is one of Alphabet's primary business segments. It provides developers with a cloud platform for building, testing, and deploying applications.
- Alphabet recently completed a 20-for-1 stock split.
| Google (Alphabet) Earnings Results | |||
|---|---|---|---|
| Metric | Beat/Miss/Match | Reported Value | Analysts' Prediction |
| EPS | Beat | $1.21 | $1.14 |
| Revenue | Miss | $69.7B | $69.9B |
| Google Cloud Revenue | Miss | $6.3B | $6.4B |
Source: Predictions based on analysts' consensus fromVisible Alpha
Google (Alphabet) Financial Results: Analysis
Alphabet Inc. (GOOGL,GOOG), parent company of Google, on July 26 reported Q2 FY 2022 earnings and revenue that were mixed relative to consensus estimates.Earnings per share (EPS) fell 11.0% year-over-year (YOY) but coming in ahead of analyst predictions. Google's revenue missed analyst estimates, while increasing by 12.6% compared with the year-ago quarter. GoogleCloud revenue also missed analysts' expectations, coming in at $6.3 billion.
GOOGL Cloud Revenue
Google Cloud revenue grew 35.6% YOY, the slowest pace of growth in at least 17 quarters. It fell short of analyst predictions for the quarter. Google Cloud is one of the tech giant's primary business segments, the other being Google Services. The cloud segment provides developers with a highly scalable and reliable platform for building, testing, and deploying applications. It also offers workspace collaboration tools, including apps like Gmail, Docs, Drive, Calendar, Meet, and more.
As of the end of the fourth quarter of 2021, Google Cloud had an estimated 9% of the global cloud market, ranking it third behind Microsoft Corp.'s (MSFT) Azure and top-ranked Amazon.com Inc.'s (AMZN) Amazon Web Services.
GOOGL Outlook and Stock Performance
Alphabet did not provide forward guidance at the time of its earnings release.
GOOGL Conference Call Recap
In a conference call after results were released, Google Chief Executive(CEO) Sundar Pichaisaid the company is focusing on making readjustments in its operations. ”As a company, when you’re in growth mode, it’s tough to always take the time to do all the readjustments you need to do,” Pichai said. “Moments like this give us a chance." Google said this month that it will slow hiring and reassess its staffing requirements.
Shares of GOOGL rose by about 2.6% in after-market trading hours immediately following the company's earnings release. Overall, Alphabet shares have underperformed the market in the last year, providing a 1-year trailing total return of -21.7% compared with -10.3% for the S&P 500 as of July 26.
Alphabet's next earnings report (for Q3 FY 2022) is expected to be released on Oct. 27, 2022.
Do you have a news tip for Investopedia reporters? Please email us at
tips@investopedia.com
Article Sources
Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in oureditorial policy.
Alphabet Inc. "Alphabet Announces Second Quarter 2022 Results," Pages 1-2.
Visible Alpha. "Financial Data."
Alphabet Inc. "Form 10-K for the Fiscal Year Ended Dec. 31, 2021," Pages 6 & 7.
Statista. "Cloud Infrastructure Services Vendor Market Share Worldwide From 4th Quarter 2017 to 4th Quarter 2021."
The Wall Street Journal. "Google Sales Growth Slows as Pressures Mount on Ad Market."
TradingView. "Price Chart: GOOGL and S&P 500."
MarketScreener. "ALPHABET INC. (GOOGL)."
Compare Accounts
×
The offers that appear in this table are from partnerships from which Investopedia receives compensation. This compensation may impact how and where listings appear. Investopedia does not include all offers available in the marketplace.
Provider
Name
Description
Partner Links
Related Terms
What Is Green Tech? How It Works, Types, Adoption, and Examples
Green tech is a type of technology that is considered environmentally friendly based on its production process or supply chain.
more
FAANG Stocks: Definition and Companies Involved
FAANG is an acronym for the five best-performing American tech stocks in the market: Meta (formerly Facebook), Apple, Amazon, Netflix, and Alphabet (formerly Google).
more
REIT: What It Is and How To Invest
A real estate investment trust (REIT)is afirm whose shares you can buy that owns, manages, or finances income-producing properties.
more
Paraplanning: What It Is and Difference from Financial Planning
Paraplanning is defined as the administrative duties of a financial planner.
more
Forward Price-to-Earnings (P/E): What It Is, What It Tells You
Forward price-to-earnings (forward P/E) is a measure of the P/E ratio using forecasted earnings for the P/E calculation.
more
Spark Spread: What It Is and How It's Used
The spark spread is the difference between the wholesale market price of electricity and its cost of production using natural gas.
more
- About Us
- Terms of Service
- Dictionary
- Editorial Policy
- Advertise
- News
- Privacy Policy
- Contact Us
- Careers
- #
- A
- B
- C
- D
- E
- F
- G
- H
- I
- J
- K
- L
- M
- N
- O
- P
- Q
- R
- S
- T
- U
- V
- W
- X
- Y
- Z
Investopediais part of the Dotdash Meredithpublishingfamily.
We Care About Your Privacy
We and our 100 partners store and/or access information on a device, such as unique IDs in cookies to process personal data. You may accept or manage your choices by clicking below, including your right to object where legitimate interest is used, or at any time in the privacy policy page. These choices will be signaled to our partners and will not affect browsing data.
We and our partners process data to provide:
Store and/or access information on a device. Use limited data to select advertising. Create profiles for personalised advertising. Use profiles to select personalised advertising. Create profiles to personalise content. Use profiles to select personalised content. Measure advertising performance. Measure content performance. Understand audiences through statistics or combinations of data from different sources. Develop and improve services. Use limited data to select content.
