Google Cloud Profitability
(Google Cloud’s operating loss dropped to $591 million in the second quarter that ended June 30, from $1.43 billion in the same quarter of 2020.)
We continue to invest in the business to scale the business and to build the right product and services for customers.
This is an economies of scale business, because there’s a certain amount of investment you have to have in products. You have a certain amount of investment you have to have in a network of data centers, certain amount of investment that you need to have in a go-to-market organization. And the larger you get, that amortizes across a larger customer base and a larger revenue base. So we are very focused...on investing to ensure we succeed in the market, and you’ve seen our growth. And as we grow, and given the fundamental nature of our business, we have shown that we have been able to improve margins.