Alphabet gains 4% postmarket as Q2 near-miss dodges investors' fears

Jul. 26, 2022 4:51 PM ETAlphabet Inc. (GOOG), GOOGLBy: Jason Aycock, SA News Editor134 Comments

Google Announces EUR 1 Billion Investment In Germany, Including Renewable Energies

Sean Gallup/Getty Images News

Alphabet is up slightly after hours - (NASDAQ:GOOG) +3.5%, (NASDAQ:GOOGL) +3.5% - despite a narrow miss of estimates that apparently assuaged some investor fears after the gloom cast over the Internet ad sector from Snap's results.

Revenues grew 12.6% to $69.69B, just shy of expectations for $69.8B, with strength in Search and Cloud. As with other tech names, it's seeing foreign-exchange challenges from a strong dollar: In constant currency, revenues would have been up 16%.

Operating income ticked up slightly, to $19.45B from $19.36B, though operating margin fell to 28% from a year-ago 31%.

Net income fell to $16B from a year-ago $18.53B. In per-share terms, the company made $1.21 vs. expectations for $1.27.

Traffic acquisition costs rose 11.8%, to $12.2B. Revenue ex-TAC came in at $57.47B.

Revenue breakout: Google Search and other, $40.7B (up 13.5%); YouTube ads, $7.34B (up 4.8%); Google Network, $8.26B (up 8.7%); Google other, $6.55B (down 1%); Google Cloud, $6.28B (up 35.6%); Other Bets, $193M (up 0.5%).

Operating income by segment: Google Services, $22.8B (up 1.9%); Google Cloud, -$858M (vs. prior -$591M); Other Bets, -$1.7B (vs. prior -$1.4B).

The company also hired up somewhat more than expected, with headcount now just over 174,000 vs. a forecast 168,500.

Conference call to come at 5 p.m. ET.

Recommended For You

Comments (134)

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.