{"id":5139,"date":"2023-10-24T23:21:26","date_gmt":"2023-10-24T23:21:26","guid":{"rendered":"https:\/\/infundpros.com\/business\/alphabet-revenue-beats-forecasts-despite-softer-than-expected-cloud-growth\/"},"modified":"2023-10-24T23:21:26","modified_gmt":"2023-10-24T23:21:26","slug":"alphabet-revenue-beats-forecasts-despite-softer-than-expected-cloud-growth","status":"publish","type":"post","link":"https:\/\/infundpros.com\/?p=5139","title":{"rendered":"Alphabet revenue beats forecasts despite softer than expected cloud growth"},"content":{"rendered":"<div>\n<p>Unlock the Editor\u2019s Digest for free<\/p>\n<p class=\"article__content-sign-up-topic-description\"><span>Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.<\/span><\/p>\n<p><iframe class=\"article__content-sign-up-iframe close\" scrolling=\"no\" id=\"signUpIframe\" data-prev-url=\"\/register\/in-article-sign-up?ft-content-uuid=d56ff64b-03f6-4e2c-ae99-a33273e434e2\"><\/iframe><\/div>\n<div id=\"article-body\">\n<p>Resilient advertising revenues helped Google parent Alphabet surpass expectations for sales in the third quarter, though a weaker than expected performance in its cloud computing division disappointed investors.<\/p>\n<p>Google\u2019s Cloud division, which turned its first operating profit this year, narrowly missed revenue forecasts, rising 22 per cent to $8.4bn compared with expectations for a gain of about 26 per cent. While the unit remained profitable in the three months to September 30, operating income was lower than in the second quarter of the year.<\/p>\n<p>Ruth Porat, the newly-appointed president and outgoing chief financial officer at Alphabet and Google, said the performance reflected \u201cthe impact of customer optimisation efforts\u201d, as clients look to bring down costs.<\/p>\n<p>Investors are monitoring when the slowdown in cloud growth \u2014 as companies have sought to cut costs \u2014 will bottom out, and what effect tighter enterprise budgets will continue to have on cloud providers including Google and Amazon Web Services.<\/p>\n<p>Sundar Pichai, Alphabet and Google chief executive, said on Tuesday that there were \u201csigns of stabilisation\u201d.<\/p>\n<p>Despite the more muted cloud performance, Alphabet\u2019s overall revenue surpassed analyst expectations, rising 11 per cent to $76.7bn. Earnings per share also beat forecasts, jumping 46 per cent to $1.55, with post-tax income rising 42 per cent to $19.7bn.<\/p>\n<p>In spite of efforts among Big Tech companies to rein in spending this year, including with lay-offs, the groups have been racing to develop, deploy and monetise generative artificial intelligence, with products such as Alphabet\u2019s Bard chatbot.<\/p>\n<p>Porat said Alphabet expected to make \u201celevated levels of investment\u201d this year and next, with capital expenditure in the third quarter driven \u201coverwhelmingly\u201d by investments in AI-supporting infrastructure such as servers and data centres.<\/p>\n<p>From the start of the year through to September 30, Alphabet\u2019s spending on research and development rose 14 per cent to $33.3bn. <\/p>\n<p>\u201cWe remain focused on durably re-engineering our cost base to create investment capacity to support our growth priorities, most important of which is with AI,\u201d said Porat. <\/p>\n<p>Pichai said that the company was making \u201cexciting progress\u201d on AI, \u201cand [there is] lots more to come\u201d.<\/p>\n<p>The resilient numbers came despite a more challenging start to the year that resulted in significant job cuts and cost cutting. Alphabet axed 12,000 staff in January and confirmed a smaller number of additional cuts in the Google News team this month.<\/p>\n<p>Shares fell more than 6 per cent in after-hours trading in New York.\u00a0<\/p>\n<\/div>\n<p>Read the full article <a href=\"https:\/\/www.ft.com\/content\/d56ff64b-03f6-4e2c-ae99-a33273e434e2\" target=\"_blank\" rel=\"noopener\">here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Unlock the Editor\u2019s Digest for free Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter. Resilient advertising&#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[22],"tags":[],"class_list":{"0":"post-5139","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-business"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Alphabet revenue beats forecasts despite softer than expected cloud growth | inFundPros<\/title>\n<meta name=\"description\" content=\"Unlock the Editor\u2019s Digest for freeRoula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.Resilient advertising revenues\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/infundpros.com\/?p=5139\" \/>\n<meta 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