Cloud News
Google Cloud Earnings Preview: Profit, AI And Sergey Brin
Mark Haranas
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 Become An Even Largest Part Of Alphabet?
Parent company Alphabet has become more reliant on Google Cloud over the past several years to drive sales growth compared to its massive advertising business on Google Search and YouTube.
In Q1 2023, Google Cloud’s $7.45 billion in revenue represented nearly 11 percent of Alphabet’s total sales of $69.8 billion. Meanwhile, Google’s advertising business reported flat sales growth during the quarter.
Comparatively in Q1 2022, Google Cloud sales represented only about 8.5 percent of Alphabet’s total revenue. In Q1 2021, Google Cloud revenue represented less than 8 percent of Alphabet’s total revenue.
The Takeaway: With Google Cloud being its parent company’s largest sales driver in 2023, it bodes well for the cloud company’s future in terms of Google’s willingness to invest billions to expand Google Cloud’s customer base, partner program initiatives and cloud services footprint on a global basis. It will be interesting to see if Google Cloud revenue exceeds 11 percent of Alphabet’s total sales in the second quarter of 2023.
