Alphabet continues to earn more with Google Cloud, YouTube revenues are also increasing

Alphabet once again earned more with its Google Cloud division in the last quarter of 2023. The Google parent company’s service recorded an almost 26 percent increase in turnover compared to the previous year.

The Google Cloud division earned just under $9.2 billion in the quarter in question, generating an operating income of $864 million, the report shows. most recent quarterly figures. It is the first time that the division has not made a loss for an entire year with the Cloud products; The department only made a profit for the first time at the beginning of 2023. For comparison: in the last quarter of 2022, Google Cloud still made a loss of $ 186 million.

As usual, Alphabet generates most of its revenue from advertising sales. Google ad revenue rose nearly 13 percent to $48 billion, while YouTube ads generated more than 15 percent more, totaling $9.2 billion. Alphabet’s total revenue increased by 13 percent to $83 billion in the last quarter of 2023. Net income rose even faster, by 52 percent to just under $20.7 billion.

In the quarterly figures, the American company also explains the costs of the recent rounds of layoffs. In the past year, Alphabet spent $2.1 billion in severance payments and other related costs. Starting in early 2023, hundreds of Google employees and at least 12,000 Alphabet employees were laid off. It is not clear to what extent these cost-saving measures have contributed to the quarterly figures. Based on the last quarter of 2023, the company has 182,502 employees worldwide, which is about 8,000 net fewer than in the same period in 2022.