On Tuesday, Alphabet disclosed first-quarter earnings and revenue that were lower than expected. In extended trade, the shares fell roughly 3%.

The following are the outcomes

Earnings per share (EPS): $24.62 per share, vs. $25.91 expected, as per Refinitiv

Revenue: $68.01 billion, vs. $68.11 billion expected, as per Refinitiv

YouTube advertising revenue: $6.87 billion vs. $7.51 billion expected, as per StreetAccount

Google Cloud revenue:  $5.82 billion vs. $5.76 billion expected, as per StreetAccount

Traffic acquisition costs (TAC): $11.99 billion vs. $11.69 billion expected, as per StreetAccount

Google’s revenue was $68.01 billion, up 23% from the same period the previous year. This is down from 34% growth in the first quarter of 2021, when the economy was still recovering from the pandemic.

Advertising income for the quarter totaled $54.66 billion, up from $44.68 billion the year before.

For the quarter, YouTube ad revenue fell short of analyst estimates. When viewers were largely at home on their gadgets, the video site benefited greatly from the pandemic. TikTok is gaining a larger share of the social media video market as a result of the mistake.

On the analyst call, CFO Ruth Porat stated that YouTube enjoyed “modest growth,” mostly in direct response ads. According to her, the slowdown is mostly due to difficult comparisons to a good first quarter of 2021.

On the call, CEO Sundar Pichai announced that YouTube’s TikTok competitor, Shorts, now has 30 billion daily views, up from 20 billion in the previous quarter and four times as many as a year ago.

As more large corporations transfer workloads away from their own data centres, Google’s cloud business was a standout in the quarter, expanding 44 percent and surpassing projections.

The cloud segment, on the other hand, continues to lose money, with an operational deficit of $931 million, compared to $974 million a year before.

Due to the invasion of Ukraine, Google paused many of its Russian operations during the quarter. In the first quarter, revenue growth in the European area, which encompasses the Middle East and Africa, dropped to 19 percent from 33 percent a year earlier.

Other Bets, which includes Alphabet’s bio sciences companies and self-driving car subsidiary Waymo, nearly doubled sales to $440 million from $198 million the year before. The unit’s deficit grew significantly to $1.15 billion.

The statistic used to show how much the corporation pays other websites to attract traffic, Traffic Acquisition Costs (TAC), came in more than Wall Street projected at $11.99 billion.

Google’s other revenue division, which includes hardware, the Play Store, and non-advertising YouTube revenue, came in at $6.81 billion, up slightly from the year before.

As of Tuesday’s close, Alphabet’s stock was down 18% for the year. After hours, the stock dropped to its lowest level since May 2021.

For the latest Business News Follow BOL News on Google News. Read more on Latest Business News on oldsite.bolnews.com