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 Again?
Google partners, investors and customers will be watching Tuesday to see if Google Cloud can become a profitable company quarter after quarter in 2023.
After years of generating an operating loss, Google Cloud turned a profit in Q1 2023 for the first time in the company’s history. Google Cloud captured operating income of $191 million in first quarter 2023 and had an operating margin of 2.6 percent.
The company has historically been in the red for profitability, typically generating hundreds of millions of dollars in operating losses every quarter over the years. For example, in 2022, the company reported an overall operating loss of $1.9 billion for the year.
The Takeaway: Google Cloud’s second quarter 2023 operating results will show if the world’s third-largest cloud provider can remain a profitable company for the long haul.