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

PayPal parts with top advertising executive after shifting its marketing strategy during the pandemic

* PayPal's chief creative officer Steve Simpson, its top advertising executive, left the company after about a year. * The move came after PayPal shifted its marketing strategy during the coronavirus pandemic, placing less emphasis on the brand and more on catering to small businesses, said a source with direct knowledge of the marketing operation. * Simpson's departure followed that of CMO and former Apple executive Allison Johnson in May. Both "decided to leave PayPal" as the company streamlines its global marketing functions, according to a PayPal spokeswoman. * Visit Business Insider's homepage for more stories. PayPal's highest-ranking ad executive Steve Simpson left earlier this month after just over a year as part of a restructuring of its global marketing business. Simpson, who was chief creative officer, was hired to make high-minded ad campaigns to help PayPal stand out from competitors like Square, Stripe, and Apple Pay. But this strategy chan...
Read more

How to send your location on Snapchat to your friends through the app's Snap Map feature

* You can send your location on Snapchat to a single friend or to several users in a group.   * To send a location on Snapchat, you'll need to visit your friendship history with a user and locate the "Send My Location" feature.  * Once you send a location on Snapchat to a friend, they can tap it and zoom in to see where you are.  * Visit Business Insider's Tech Reference library for more stories. Whether you want to share the location of your favorite restaurant or the address of your new apartment, you can easily send your location on Snapchat to your friends.  You can do this using the Snap Map and will even be prompted to select who you want to share you location with the first time you use the app feature. You can choose to share your location with your mutual friends, a list of friends with exceptions, or a small group of selected friends.  To send your location directly to a mutual Snapchat friend, you must visit your chat history through your friends li...
Read more

TikTok confirms it will sue the US government, alleging Trump failed to provide 'due process' before issuing ban

* TikTok confirmed Saturday that the company planned to sue the US government over President Donald Trump's executive orders targeting the popular app. * A company spokesperson said TikTok experienced "a lack of due process as the administration paid no attention to facts and tried to insert itself into negotiations between private businesses." * TikTok, which has surged in popularity over the past year, was known as Musical.ly until it was purchased by the Chinese company ByteDance in 2017 and renamed. * The president on August 6 and August 14 signed executive orders targeting TikTok.  * Visit Business Insider's homepage for more stories. TikTok on Saturday announced it plans to sue the US government over President Donald Trump's executive orders pertaining to its ownership, arguing the company was deprived of its due process rights. The president, who began targeting TikTok in July, issued an executive order August 6 making it illegal for American compani...
Read more