Alphabet's Q2 Revenue Rises 7 Percent to $74.6B

July 26, 2023

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Alphabet's Q2 Revenue Rises 7 Percent to $74.6B

Alphabet Inc. (GOOGL) reported earlier today, on July 26, that its Q2 revenue reached $74.6 billion, up 7% annually and beating expectations. Net income increased 15% to $18.4 billion, while diluted earnings per share (EPS) rose by 19% to $1.44. The company announced that its CFO Ruth Porat will assume the newly created role of president and chief investment officer of Alphabet and Google, effective September 1, while also continuing as CFO.

Topline grew +9% FXN. While Google Services revenue growth was flat in 1Q’23, while it was 5.5% YoY in 2Q’23, with growth re-accelerating in every component of Google Services. Google launched “Search Generative Experience” or SGE" in May. YouTube’s +4% YoY ad revenue in 2Q’23 (vs -2.6% in 1Q’23) was driven by growth in the brand, wiser monetization incentives, along with better commercial advertisement deals, reflecting further stabilization in advertiser spend. So-called YouTube shorts is now watched by 2 Bn people every month (vs. 1.5 Bn in 2Q’22).

The results look quite decent, even if no spectacular. In terms of e-mail infrastructure and convenience, GMail upstaged all of its competitors – most importantly, Microsoft Outlook and its Web-based livemail. Microsoft's Cloud has many customer complaints aboud them forcefully driven to commercially increase the storage after every program or program installation, along with the entire desktop “Documets” folder, being automatically copied externally leading to escalated Web storage space deficit. As a result, Google Cloud maintained its momentum with ~28% YoY growth (same as it was in 1Q’23).