The Q4 earnings report from Google’s parent firm Alphabet is out and it reveals a clear miss of forecasted targets.
The news comes as YouTube records another YoY decline in revenue when compared to previous statistics.
As a whole, figures for revenue were $76 billion and that’s a 1% rise from before. Meanwhile, the company’s net income was detailed to be a little over $13 billion and that’s down by 34%. On the other hand, the earnings of its share were displayed as $1.05 per stock.
As far as YouTube was concerned, the figures included an ad revenue of $7.96 billion in the fourth quarter, This was down by 7.8% from the $8.63 billion figure from the past.
Meanwhile, so many analysts were seen speaking about how the app’s advertising revenue was predicted to reach $8 billion for Q4 and that clearly didn’t prove to be true as per stats from FactSet. The entire revenue figures totaled to be $76.5 billion and the revenue generated across each share was highlighted as $1.1 as per recent reports by Refinitiv.
YouTube’s second YoY decline in advertising revenue is definitely not great for the company and many heads are looking at this as extremely worrying for obvious reasons. Moreover, it highlights how the popularity of arch-rival competitors that are trending in today’s market is definitely moving upwards. Common examples include TikTok and Reels from Facebook. Short-form content is a clear winner with the masses as per analysis from experts.
Alphabet and a few other tech firms were seen speaking about massive layoffs to help better cope with the like of reducing their overall costs. Moreover, some tech firms mentioned in the previous month how it was planning to get rid of 12,000 jobs and that’s nearly 6% of the whole workforce witnessed globally.
The CEO of Alphabet has also shared his insights regarding this news. It claims to be on a very crucial journey to help improve the whole cost structure in a manner that’s more durable and assists to build up a financially sustainable environment. It’s not only vibrant but also one that has the potential to grow in the future.
Moving on to some more positive aspects of its performance, there was plenty of talks linked to good momentum in the firm’s Cloud Segment as well as the subscriptions witnessed on YouTube. Here is where a lot of profit gets generated, not to forget devices such as Google Pixel.
In other good news, the company mentioned how its YouTube Music and its premium subscriptions across the platform managed to top up to 80 million subscribers that were paying a fee as a whole.
Pichai adds how YouTube Shorts which is the company’s short video style content is doing great. On average, they receive around 50 billion views daily and that’s a massive increase from the 30 billion that was highlighted during the early part of 2022.
The company stated that starting this month, creators making such short-form style video content would be rewarded by becoming eligible for sharing of ad revenue. Under this new scheme, it’s like getting a 45% split that’s distributed across the likes of share of the whole Shorts views. This is in comparison to the long-form style of video content seen under the app’s core YouTube partner initiative.
Meanwhile, Google’s revenue for its Cloud project increased by 32% and reached a figure of over $7 billion in Q4 of 2022. It also managed to narrow down operating losses to reach the $480 million target as compared to the $890 million seen in the same quarter of last year.
Read next: New Report Details The Possible Design For Chatbots On Google Search
The news comes as YouTube records another YoY decline in revenue when compared to previous statistics.
As a whole, figures for revenue were $76 billion and that’s a 1% rise from before. Meanwhile, the company’s net income was detailed to be a little over $13 billion and that’s down by 34%. On the other hand, the earnings of its share were displayed as $1.05 per stock.
As far as YouTube was concerned, the figures included an ad revenue of $7.96 billion in the fourth quarter, This was down by 7.8% from the $8.63 billion figure from the past.
Meanwhile, so many analysts were seen speaking about how the app’s advertising revenue was predicted to reach $8 billion for Q4 and that clearly didn’t prove to be true as per stats from FactSet. The entire revenue figures totaled to be $76.5 billion and the revenue generated across each share was highlighted as $1.1 as per recent reports by Refinitiv.
YouTube’s second YoY decline in advertising revenue is definitely not great for the company and many heads are looking at this as extremely worrying for obvious reasons. Moreover, it highlights how the popularity of arch-rival competitors that are trending in today’s market is definitely moving upwards. Common examples include TikTok and Reels from Facebook. Short-form content is a clear winner with the masses as per analysis from experts.
Alphabet and a few other tech firms were seen speaking about massive layoffs to help better cope with the like of reducing their overall costs. Moreover, some tech firms mentioned in the previous month how it was planning to get rid of 12,000 jobs and that’s nearly 6% of the whole workforce witnessed globally.
The CEO of Alphabet has also shared his insights regarding this news. It claims to be on a very crucial journey to help improve the whole cost structure in a manner that’s more durable and assists to build up a financially sustainable environment. It’s not only vibrant but also one that has the potential to grow in the future.
Moving on to some more positive aspects of its performance, there was plenty of talks linked to good momentum in the firm’s Cloud Segment as well as the subscriptions witnessed on YouTube. Here is where a lot of profit gets generated, not to forget devices such as Google Pixel.
In other good news, the company mentioned how its YouTube Music and its premium subscriptions across the platform managed to top up to 80 million subscribers that were paying a fee as a whole.
Pichai adds how YouTube Shorts which is the company’s short video style content is doing great. On average, they receive around 50 billion views daily and that’s a massive increase from the 30 billion that was highlighted during the early part of 2022.
The company stated that starting this month, creators making such short-form style video content would be rewarded by becoming eligible for sharing of ad revenue. Under this new scheme, it’s like getting a 45% split that’s distributed across the likes of share of the whole Shorts views. This is in comparison to the long-form style of video content seen under the app’s core YouTube partner initiative.
Meanwhile, Google’s revenue for its Cloud project increased by 32% and reached a figure of over $7 billion in Q4 of 2022. It also managed to narrow down operating losses to reach the $480 million target as compared to the $890 million seen in the same quarter of last year.
Read next: New Report Details The Possible Design For Chatbots On Google Search
