Google’s Big Earnings Takeaways: AI, Google Cloud Profit, Hiring
From Google Cloud turning a profit for the first time to Google’s hiring outlook in 2023 and bold artificial intelligent vision, CRN breaks down the six biggest takeaways from Google’s first quarter 2023 financial earnings report.
Google Cloud Turns A $191 Million Profit
After years of generating an operating loss, for the first time in its history, Google Cloud turned a profit during the first quarter of 2023.
Google Cloud generated operating income of $191 million for the quarter. Comparatively, during the first quarter of 2022, the company reported an operating loss of $931 million.
Google Cloud generated total revenue of $7.45 billion, an increase of 28 percent from $5.82 billion revenue in first quarter 2022.
“Over the past three years, GCP’s annual deal volume has grown nearly 500 percent, with large deals over $250 million growing more than 300 percent,” said Pichai. “Nearly 60 percent of the world’s 1,000 largest companies are Google Cloud customers.”
Looking at the history of Google Cloud’s operating loss: in fourth quarter 2022, the company generated an operating loss of $480 million. In third quarter 2022, Google Cloud reported an operating loss of $699 million. For its second quarter 2022, Google Cloud generated an operating loss of $858 million.
The Takeaway: For its entire fiscal year 2022, Google Cloud reported an operating loss of nearly $3 billion. The turn from operating at a loss to generating profitability is a huge win for Google Cloud, highlighted by a 28 percent increase in sales.