Google Cloud Begins Profitability Era: 5 Huge Q2 Earnings Takeaways
Google Cloud reports record sales and operating income during Q2 2023. Here are the five biggest highlights from Google’s financial earnings report on Tuesday.
The Mountain View, Calif.-based cloud computing company generated a record operating income of $395 million during its second quarter of 2023. During the same quarter one year ago, Google Cloud reported an operating loss of $590 million.
This means Google Cloud improved its operating income by nearly $1 billion year over year in Q2 2023.
“We continue to invest aggressively while remaining focused on profitable growth,” said Ruth Porat, Google’s chief financial officer, regarding Google Cloud during the company’s second quarter earnings report on Tuesday.
Google Cloud was able to achieve its most profitable quarter in the company’s history thanks to strong sales growth, reducing the pace of hiring new employees and momentum in artificial intelligence.
Google Q2 2023 Earnings
Before jumping into the five biggest second quarter 2023 financial earnings takeaways regarding Google Cloud’s profitability, here’s a quick look at Alphabet’s financial results which shows Google Cloud is growing much faster than its parent company.
Alphabet generated a total of $74.6 billion in revenue during the second quarter, representing a 7 percent sales increase year over year. Meanwhile, Google Cloud increased year-over-year revenue by 28 percent, approximately four-times faster than Alphabet.
“I’m definitely excited about what’s ahead [for Google Cloud],” said Pichai. “All the investments we’re doing in AI across Alphabet—including the work we’re doing in Google DeepMind, and Google research and on Gemini and so on—are directly applicable to cloud as well.”
CRN breaks down the five biggest Google Cloud takeaways from Google’s Q2 2023 earnings report last night as well as the most interesting comments from CEO Pichai and future Google President Ruth Porat.