the letter First quarter earnings will be released after hours on Thursday.
That’s what analysts expected.
- Earnings per share: $1.51 according to LSEG.
- Income: $78.59 billion according to LSEG.
- YouTube ad revenue$7.72 billion according to StreetAccount.
- Google Cloud Income: Worth $9.35 billion according to StreetAccount.
- Traffic Acquisition Cost (TAC)$12.74 billion, according to StreetAccount.
Wall Street expects Alphabet to post its second consecutive quarter of year-over-year revenue growth. While it marks an acceleration from previous quarters, the numbers compare to Google’s weakest reports on record.
The rise of generative AI is forcing Google to take into account changes in how consumers get information online, prompting the company to ensure it doesn’t fall behind OpenAI. Microsoft Develop new technologies and features.
As more users abandon traditional Internet searches, Google is restructuring to try to stay ahead of the artificial intelligence arms race.
In February, Google AI image generator launched, company pulls error after user discovers it went viral The mishap follows Google’s other product launch missteps as it rolls out tools and services
Prabhakar Raghavan, Google’s senior vice president of search, told employees last month that the need for rapid investment in artificial intelligence has changed the market and they need to act fast.
“We are in a new spending reality,” Raghavan said in a plenary session, the audio of which was reported by CNBC. He added that the company is “investing heavily in machines” building artificial intelligence. Organic growth is slowing, and the number of new devices entering the world “isn’t as good as it used to be.”
Raghavan, who leads a research team, said the first quarter of this year experienced “real highs and lows”. Restructuring company veteran Liz Reid has been named head of search, it was reported.
Online Advertising Competitors Yuan The company’s shares fell in intraday trading on weaker-than-expected forecasts and CEO performance despite Mark Zuckerberg’s significant ongoing investment commitments, primarily focused on artificial intelligence, despite missing revenue and profit estimates.
Google added more generative AI features to search this quarter and introduced Circle to Search, which uses words or images highlighted in screenshots and transcribes them into Google Search, which Gizmodo called “the best new Android feature of the year.”
Cost-cutting and layoffs continued during the quarter. Google CFO Ruth Porat told the company’s finance team that their team will look at restructuring, including relocations to other countries and layoffs, according to CNBC.
As advertising growth slows, Google has made a broad effort to realign its workforce and resources to invest more in new technologies like artificial intelligence. CEO Sundar Pichai told employees in January, he said more layoffs were likely in 2024, but which teams would be affected. He did not specify the time.
Google also faced internal strife this quarter, with employees speaking out to protest the company’s cloud deal with the Israeli government called Project Nimbus. The company eventually announced more than 30 employees were involved in internal protests.
