Google CEO Sundar Pichai
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Alphabet missed on both top and bottom lines when it reported fourth quarter earnings after the bell Thursday. The company’s stock is down 6% after hours, erasing much of the 7.28% it gained in normal trading hours.
Here’s how the numbers stacked up:
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- Earnings per share (EPS): $1.05 vs $1.18 per share expected, according to Refinitiv
- Revenue: $76.05 billion, vs. $76.53 billion expected, according to Refinitiv
- YouTube advertising revenue: $7.96 billion vs. $8.25 billion expected, according to StreetAccount estimates.
- Google Cloud revenue: $7.32 billion vs. $7.43 billion expected, according to StreetAccount estimates
- Traffic acquisition costs (TAC): $12.93 billion vs. $13.32 billion expected, according to StreetAccount estimates
The company said it would take a charge of between $1.9 billion and $2.3 billion, mostly in the first quarter of 2023, related to the layoffs of 12,000 employees it announced in January. It also expects to incur costs of about $500 million related to reduced office space in Q1, and warned that other real-estate charges are possible going forward.
The company said it lost $1.49 billion on equity securities during the quarter.
YouTube advertising revenue fell short of analyst expectations to $7.96 billion — down from $8.63 billion the year prior. In addition to the overall pullback in ad spending, YouTube is also facing heightened competition from TikTok in short-form videos.
During the quarter, Google Cloud brought in $7.32 billion — less than analysts expected. It’s still a notable gain from $5.54 billion the year prior.
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