Cloud News
Google’s Big Earnings Takeaways: AI, Google Cloud Profit, Hiring
Mark Haranas
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.
Economy Slowing Cloud Consumption ; Long-Term GCP Profitability Is The ‘Focus’
Although Google Cloud sales and profitability are heading in the right direction, Google Chief Financial Officer Ruth Porat said economic “uncertainty” is leading to a slowdown in GCP consumption.
“In the first quarter, we continued to see slower growth of consumption as customers optimized GCP costs reflecting the macro[economic] backdrop, which remains uncertain,” said Porat during the company’s earnings report.
Google’s CFO said Google Cloud saw “some headwinds from slower growth of consumption, with customers really looking to optimize their costs given that macro climate.”
However, Google’s CEO and CFO said they were pleased with the momentum of Google Cloud and the constant innovation being launched by its cloud arm.
“In terms of operating performance, we remain focused on driving long-term profitable growth in cloud, while continuing to invest given the substantial opportunity,” said Porat.
The Takeaway: Although customers might be consuming less GCP right now, sales growth and innovation remains high right now for both the near- and long-term for Google Cloud.
