Farhan Badami, market analyst at eToro, comments on Alphabet's accounts: “Investors will welcome the improvement in bottom line margins resulting from Alphabet's workforce reduction strategy, which also involved the optimization of office space on a global scale. and the adjustment of the useful life of servers and network equipment, which resulted in a reduction in depreciation expenses and an improvement in financial operations,”
In the presentation of Alphabet's accounts, all eyes were on advertising revenue. Google's parent company beat analyst expectations by posting year-over-year revenue growth of 11% and net income of $19.69 billion, with earnings per share of $1.55.
A key factor in Alphabet's quarterly success was the performance of its advertising business segments, Search and YouTube. Google's advertising revenue reached almost $60 billion, representing a 9% increase compared to the previous year.
In this category, search ads saw notable growth of 18%, while YouTube ad revenue increased 15%. These strong numbers signal advertisers' willingness to invest in Alphabet's advertising solutions, despite tight budgets and reduced corporate spending.
Google's cloud division was the outlier, growing at a slower 22% compared to the previous year. Despite missing forecasts, this segment generated revenue of $8.4 billion and marked its third consecutive quarter with an operating profit of $266 million.
Investors will welcome improved bottom line margins from Alphabet's downsizing strategy, which also involved optimizing global office space and adjusting the lifespan of servers and network equipment, which resulted in a reduction in amortization expenses and an improvement in financial operations.
Source: Territorioblockchain.com
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