Google Cloud Earnings Preview: Profit, AI And Sergey Brin
Can Google Cloud turn a profit again? Will there be any big Google AI announcements? Here’s five things to watch for during Google’s Q2 2023 earnings.
Can Google Cloud turn a profit for the second time in the cloud company’s history? Will the cloud computing giant make any blockbuster artificial intelligence (AI) announcements or provide new insights on its generative AI roadmap? Will Alphabet CEO Sundar Pichai comment on Sergey Brin—Google’s co-founder and former president—reportedly coming back to work on its AI project called Gemini?
Google Second Quarter Earnings Estimate: $7.72 Billion
The Mountain View, Calif.-based search and cloud giant is set to unveil its financial earnings results for the second quarter of 2023 on July 25 after the market closes. Google’s second quarter ended on June 30, 2023.
Zacks Investment Research projects that Google Cloud will report total revenue of $7.72 billion for Q2 2023, which would represent a 23 percent sales growth rate year over year. If Zacks’ estimate comes to fruition, it would mark one of the company’s lowest year-on-year sales growth rates in some time.
In first quarter 2023, Google Cloud generated total sales of $7.45 billion, up from $5.82 billion in first quarter 2022. The cloud company turned a profit for the first time in its history during Q1 2023. Google Cloud’s main growth drivers include its flagship cloud solutions Google Cloud Platform, known as GCP, and Google Workspace, which includes collaboration tools like Gmail and Chat. The cloud company also invested heavily in AI and generative AI during the second quarter of 2023.
CRN breaks down the five most important things to watch for during Google’s Q2 2023 earnings report on Tuesday after the markets close.