Alphabet Misses

April 27, 2022

Alphabet reported financial results for the quarter ended March 31, 2022. The firm had earnings per share (EPS) of $24.62 per share with $25.91 expected. The tech giant reported revenue of $68.01 billion with $68.11 billion expected.

YouTube advertising revenue did not cut it, as only $6.87 billion came in with $7.51 billion expected. Google Cloud revenue was ok with $5.82 billion coming in against $5.76 billion expected.

Traffic acquisition costs (TAC) were high with $11.99 billion reported against $11.69 billion expected.

Sundar Pichai, CEO of Alphabet and Google, said: "Q1 saw strong growth in Search and Cloud, in particular, which are both helping people and businesses as the digital transformation continues. We'll keep investing in great products and services, and creating opportunities for partners and local communities around the world."

Ruth Porat, CFO of Alphabet and Google, said: "We are pleased with Q1 revenue growth of 23% year over year. We continue to make considered investments in Capex, R&D and talent to support long-term value creation for all stakeholders."

On April 20, 2022, the Board of Directors of Alphabet authorized the company to repurchase up to an additional $70.0 billion of its Class A and Class C shares in a manner deemed in the best interest of the company and its stockholders, taking into account the economic cost and prevailing market conditions, including the relative trading prices and volumes of the Class A and Class C shares. The repurchases are expected to be executed from time to time, subject to general business and market conditions and other investment opportunities, through open market purchases or privately negotiated transactions, including through Rule 10b5-1 plans.

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