Mountain View, California – Alphabet, the parent company of Google, reported its earnings yesterday, revealing a substantial $86.31 billion in revenue. The company’s success can be attributed to high ad click-through rates as well as the growth of its subscription business.
One of the standout announcements was the milestone reached by Google One, a cloud storage subscription plan, which is about to surpass 100 million subscribers. This achievement, along with the success of other subscription services like Google Workspace, YouTube Premium, and YouTube TV, has contributed to the company’s annual revenue of $5 billion, a fivefold increase since 2019.
Despite the positive news, the article also highlights the lack of specific numbers for the expensive NFL Sunday Ticket subscription plan. However, Google expressed satisfaction with the sign-ups, emphasizing the long-term strategic benefits and solid advertiser interest associated with the product.
Additionally, the article mentions Google Cloud’s first-ever recorded profit in 2023, a significant development for the technology giant as it competes with industry leaders like Amazon Web Services and Microsoft Azure. Despite being in third place in terms of market share, Google Cloud showed potential with a $864 million profit in Q4 2023, in contrast to a $186 million loss during the same period in 2022.
The article also sheds light on Google’s employee layoffs in 2023, with the company reducing its overall headcount by approximately 8,000 people. This downsizing effort resulted in significant expenditures, with the company spending a total of $3.9 billion on employee severance and office space exit charges for the year.
Moreover, the headcount reduction was a point of interest for Wall Street investors, with some expressing a desire for Google to return to its 2021 employee numbers. Despite this, Google’s CEO, Sundar Pichai, indicated the possibility of further layoffs in the coming year, albeit on a smaller scale than in 2023.
Overall, Alphabet’s earnings call offered a glimpse into the company’s multifaceted performance, showcasing both its successes and challenges across various business segments. The developments in subscription services and cloud computing, alongside the impact of employee layoffs, paint a complex picture of Alphabet’s position in the tech industry.