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Google Cloud quarterly revenue rises to $6.3bn amidst operating losses

Google revenue

Google’s parent company, Alphabet, registers a revenue of $69.7 billion in Q2 2022 which is an increase of 13% from $61.9 billion in Q2 2021. Alphabet earned an operating income of $19.45 billion in this quarter. However, its net income declined from $18.5 billion in Q2 2021 to $16 billion in Q2 2022.

Ruth Porat, CFO of Alphabet and Google stated, “Our consistent investments to support long-term growth are reflected in our solid performance in the second quarter, with revenues of $69.7 billion in the quarter, up 13% versus last year or 16% on a constant currency basis. We are focused on responsible capital allocation in support of our growth opportunities.”

Google Search revenue rose from $35.9 billion in Q2 2021 to $40.7 billion in Q2 2022. YouTube ads also grew revenue to $7.3 billion. Google Network increased to $8.2 billion in this quarter from $7.6 billion in the second quarter of 2021. Google Cloud was able to grow its revenue to $6.2 billion in Q2 2022 from $4.6 billion in Q2 2021.

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.”

The 35% year-over-year growth in Google Cloud revenue far exceeded the 13% growth in overall revenue of Alphabet. However, Google Cloud suffered an operating loss of $858 million in Q2 2022, which is a whopping 45% increase from an operating loss of $591 million in Q2 2021.

Alphabet report indicates that year-over-year revenue growth in Q2 2022 was slow-paced at only 13% when compared to 62% in Q2 2021.

Other recent quarterly revenue disclosures

Microsoft Corporation recently released its revenue at the end of the fiscal year on June 30, 2022. Its annual revenue increased by 18% to $198.3 billion when the fiscal year ended on June 30, 2022. Its quarterly revenue in the last quarter was $51.9 billion with 12% year-over-year (YoY) growth.

Cognizant reported a net profit of $577 million for Q2 2022, up 12.7% from $512 million in the year ago. Its revenue was at $4.9 billion which is an increase of 9.5% in constant currency on a year-on-year (YoY) basis. This growth is for the fifth consecutive quarter and Cognizant’s highest quarterly revenue to date.

Meta, which operates the world’s largest social media platform, recorded its first ever quarterly drop in revenue with recession fears and competitive pressures weighing on its digital ads sales. Its total revenue fell by 1% to $28.8 billion in Q2 2022 from $29.1 billion last year. Meta’s net income was down to $ 6.68 billion, a decrease of 36% from $10.39 billion in Q2 2021. In Q2 2022, its diluted earnings per share (EPS) came down to $2.46 from $3.61 in Q2 2021.

IBM recorded a revenue of $15.5 billion, growth of 9%, in Q2 2022. Like Google and Microsoft, its revenue growth too was led by cloud adoption as over the last 12 months, IBM’s hybrid cloud revenue reached $21.7 billion with an increase of 16%.

Read next: Cloud computing will account for 8% of India’s GDP in 2026, reports NASSCOM

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