Skip to main content

Google Cloud's $3 billion quarter shows strong but slowing growth, even as Google reported its first quarterly revenue decline since going public (GOOG, GOOGL)

* Alphabet reported earnings on Thursday, disclosing that Google Cloud generated over $3 billion in revenue — up 43% from the same period of last year. * Last quarter, Google Cloud saw a 52% year-over-year increase, showing that revenue growth in the unit is slowing down. * On a call with investors, Google CFO Ruth Porat attributed the slowdown to price changes at G Suite, its productivity software suite.  * Google Cloud was still a bright spot on Alphabet's earnings report, which saw Google report its first quarterly revenue decline since going public. * Visit Business Insider's homepage for more stories. Google Cloud's revenue growth is showing signs of slowing down, but Google is still investing aggressively in the unit by spending big on hiring and building new data centers. On Thursday, Alphabet announced that Google Cloud generated over $3 billion in revenue this past quarter. That's a 43% increase from the $2.1 billion it posted over the same period last year. Still, that rate of growth is down from the previous quarter, when Google Cloud saw a 52% revenue increase, year-over-year. Ultimately, Google Cloud was one of the bright spots for Alphabet on this earnings report. While its earnings report slightly beat Wall Street expectations overall, Google saw its first quarterly revenue decline since going public, as Alphabet reported overall revenue of $31.6 billion — down from $31.7 billion over the same period last year.  Google Cloud is still putting a big focus on hiring and building new data centers. Since Google Cloud CEO Thomas Kurian joined early last year, the company has gone on a leadership hiring spree, winning over talent from enterprise stalwarts like Oracle and SAP.  It also saw strength in selling its infrastructure and data and analytics offerings, the company said on Thursday. Earlier this month, Google Cloud announced a new product that allows customers to run its flagship data warehouse product BigQuery on multiple clouds, even those of rivals like Amazon Web Services and Microsoft. "GCP maintained a strong level of revenue growth it delivered in the first quarter and its revenue growth was again meaningfully above cloud overall," Google CFO Ruth Porat said on the earnings call with investors. Porat attributed the lower Google Cloud revenue growth compared to last quarter to G Suite, its productivity software, and specifically a "lapsed" price increase that went into effect last April and that is now accounted for as part of its normal revenue. Still, she says, G Suite maintained "healthy growth," especially amid the ongoing remote work boom.  "G Suite products and in particular Google Meet have been absolutely critical," Alphabet CEO Sundar Pichai said on the earnings call. "We quickly re-engineered it and made it available widely to help millions of businesses and other organizations connect and collaborate." Read more: Google Cloud did some 'myth busting' about data privacy and winning large customers this week as it tries to win the war against Amazon and Microsoft, analysts say Currently, Google Cloud still trails behind cloud rivals AWS and Microsoft. However, it has been working on building itself to become stronger in attracting enterprise customers by investing in data privacy and security, and it even announced some new customers this past quarter like Goldman Sachs, Deutsche Bank, Verizon, Fox Sports, and the French auto company Renault. Do you work at Google Cloud? Got a tip? Contact this reporter via email at rmchan@businessinsider.com, Signal at 646.376.6106, Telegram at @rosaliechan, or Twitter DM at @rosaliechan17. (PR pitches by email only, please.) Other types of secure messaging available upon request. SEE ALSO: Here are 22 of the most important executives leading Google Cloud as it takes on Amazon Web Services and Microsoft Azure Join the conversation about this story » NOW WATCH: Why electric planes haven't taken off yet
https://bit.ly/3fhKslY

Popular posts from this blog

How to enable the text-to-speech feature on your Kindle Fire device to hear text read aloud

* You can enable the text-to-speech feature on your Kindle Fire device to have written content read aloud. * Both Kindle content and your personal documents can utilize the text-to-speech feature. * Text-to-speech inputs are also available for languages other than English and can be downloaded via the progress bar within the book itself. * Visit Business Insider's Tech Reference library for more stories. If you are vision-impaired or simply want to hear your book or document aloud rather than reading the text, Kindle Fire has a text-to-speech feature that will translate the written words to audio so you can listen aloud. Best of all, text-to-speech is not only available for Kindle books but also for many (though not all) personal text files. Turning on text-to-speech is easy and should only take a few seconds. Books in the Kindle store will even notify you if the capability is available before you purchase, though the feature must be turned on within the book or document itse...
Read more

The NSA warned staff that smartphone apps can track them. Here are their recommendations to avoid tracking.

* The NSA warned members of the US military and intelligence community this week that their smartphone apps could be tracking them and put their security at risk. * In guidance issued Tuesday, the agency noted that many apps make use of WiFi, GPS, and Bluetooth to collect cellphone location information, which is typically sold to advertisers or third parties. * The agency recommended specific steps for staff to reduce their data exposure, like restricting app permissions and reducing web browsing on their smartphones. * Visit Business Insider's homepage for more stories. The National Security Administration warned staff that the amount of data their smartphones track could pose a national security risk in new guidance issued Tuesday. The guidance highlights a practice that's common across Silicon Valley products but rarely understood by consumers: smartphones are constantly gathering information on users' location, through a combination of apps, the smartphone's o...
Read more

All the coolest features of every Tesla vehicle ever made or unveiled, ranked (TSLA)

* Tesla's vehicles are and always have been crammed with great ideas. * These range from touchscreen interfaces to innovative battery designs to staggering acceleration. * I've driven or experienced every vehicle Tesla has ever sold or intends to sell in the future. * Here are all my favorite features, ranked. * Visit Business Insider's homepage for more stories. In about two decades, Tesla has done what everyone in the auto industry thought was impossible: create an all-electric brand that could sell hundreds of thousands of vehicles. Tesla could have done that in a boring or modest way, developing  the equivalent of an electric VW Beetle. Instead, Tesla made fantastically compelling cars that are fast, look amazing, and are packed with features. Here's a rundown of all my favorites, ranked from bottom to top: FOLLOW US: On Facebook for more car and transportation content! Tesla has been in business for 17 years. In that period of time, it's consisten...
Read more