After a record 2021 with annual revenues of $ 257 billion – the first time they exceeded $ 200 billion in one year – Google’s parent company said in a dossier (pdf) that it started 2022 with Q1 revenues growing by 23 percent from the same period last year, reaching $ 68 billion.
However, with spending increasing compared to 2021, its net profit actually fell to $ 16.4 billion from $ 17.9 billion last year.
Google’s search business generated $ 39 billion, up from $ 31 billion in the first quarter of 2021. The entire advertising business, including Search, YouTube, and its various ad networks, raised $ 54 billion in the first quarter alone. quarter.
YouTube advertising revenue also rose to $ 6.86 billion, but showed slower growth than in the last few years during the pandemic. It rose about 30 percent last year, but rose only 20 percent this year as competition from TikTok continued to heat up. YouTube responded by expanding its support for Shorts for creators and viewers, but growth did not meet analysts’ expectations and its stock prices fell by about seven percent in after-hours trading.
In an accompanying statement, Google and Alphabet CEO Sundar Pichai said: “The first quarter saw strong growth in demand and the cloud, in particular, helping both people and businesses as the digital transformation continues. We will continue to invest in great products and services and create opportunities for partners and local communities around the world. ”
Speaking to investors, Pichai highlighted investments in YouTube Shorts, which have reached 30 billion daily views, four times more than a year ago, and that the company is focusing on building a great experience while monitoring what monetization might look like. the future. CFO Ruth Porat said the company expects “forward” growth as time spent on YouTube Shorts increases before the platform’s increased monetization. We didn’t hear anyone say the word TikTok, but it clearly hung over the conversation.
Google’s first quarter revenue:
2022: $ 68.0 billion 2021: $ 55.3 billion 2020: $ 41.2 billion 2019: $ 36.3 billion 2018: $ 31.1 billion 2017: $ 24.8 billion 2016: $ 20.3 billion 2015 : $ 17.3 billion 2014: $ 17.3 billion: 2014, $ 101 billion: $ 101 billion: $ 101 billion.
– John Erlichman (@JonErlichman) April 26, 2022
If you’ve ever looked at the way Google reports revenue, then you know it’s usually impossible to say how well hardware products like Pixel, Nest, Chromecast and Android are doing. Android, Chrome, and all of Google’s hardware initiatives are grouped together as “others of Google” as a subcategory of Google’s overall services, which also breaks down Search and YouTube results. The “Other on Google” category raised $ 6.8 billion, about $ 400 million more than last year.
Revenue from Google Cloud, which has just launched its Media CDN, based on the same backbone that carries YouTube videos, is also rising, reaching $ 5.8 billion from $ 4 billion last year.
Alphabet’s “other bets,” consisting of its pilot projects such as the self-driving company Waymo, healthcare company Verily and Google Fiber, grossed $ 440 million, more than double that of the previous year.
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