Google parent company Alphabet is reporting a fall in profits for the second quarter in a row.
The internet giant revealed in its Q2 2022 earnings report it brought in $16 billion of profit for the second quarter of the year, which represents a considerable drop from $18.5 billion the previous year.
More worrying than this Q2 drop for Alphabet is the fact that it follows on from a fall in profits for Q1 of the year. Back in April, the company reported profits of $16.4 billion, which was down from $17.9 billion in the same quarter of 2021.
The reason for this trend of declining profits is increased expenses, with the company spending about $3 billion more on research and development and sales and marketing.
In both quarters of the year so far, revenue has been high. For Q2 2022, $69.7 billion of revenue marks a steep increase on $61.9 billion in Q2 2021.
Alphabet continues to make the bulk of its money from good old fashioned Google advertising, which was responsible a hefty $40.7 billion of revenue in Q2. On top of that YouTube advertising brought in $7.3 billion, and the company’s Cloud business made around $6.2 billion – though the latter continues to be a loss-making enterprise.
It’s evident that even a company has large as Alphabet/Google is feeling the effects of the current financial downturn. Earlier in the month, CEO Sundar Pichai issued a memo to staff indicating that the company would be slowing down its hiring and pausing some of its development work due to current “economic headwinds”.
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Editorial independence means being able to give an unbiased verdict about a product or company, with the avoidance of conflicts of interest. To ensure this is possible, every member of the editorial staff follows a clear code of conduct.
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We also expect our journalists to follow clear ethical standards in their work. Our staff members must strive for honesty and accuracy in everything they do. We follow the IPSO Editors’ code of practice to underpin these standards.
