Google (Part of Alphabet Inc) Half-Year Report 2023

 

Sundar Pichai, CEO of Alphabet and Google, said: “There’s exciting momentum across our products and the company, which drove strong results this quarter. Our continued leadership in AI and our excellence in engineering and innovation are driving the next evolution of Search, and improving all our services. With fifteen products that each serve half a billion people, and six that serve over two billion each, we have so many opportunities to deliver on our mission.”

Ruth Porat, CFO of Alphabet and Google, said: “Our financial results reflect continued resilience in Search, with an acceleration of revenue growth in both Search and YouTube, as well as momentum in Cloud. We continue investing for growth, while prioritizing our efforts to durably reengineer our cost base company-wide and create capacity to deliver sustainable value for the long term.”

The following data presents our revenues and operating income (loss) (in millions; unaudited):

Revenues 2023:
Google Services                $ 66,285
Google Cloud                          8,031
Other Bets                                   285
Hedging gains (losses)                  3
Total revenues                  $ 74,604
Operating income (loss):
Google Services                           $ 23,454
Google Cloud                                        395
Other Bets                                           (813)
Corporate costs, unallocated        (1,198)
Total income from operations $ 21,838

We report our segment results as Google Services, Google Cloud, and Other Bets:

• Google Services includes products and services such as ads, Android, Chrome, hardware, Google Maps,
  Google Play, Search, and YouTube. Google Services generates revenues primarily from advertising; sales
  of apps and in-app purchases, digital content products, and hardware; and fees received for subscriptionbased products such as YouTube Premium and YouTube TV.
• Google Cloud includes Google’s infrastructure and platform services, collaboration tools, and other services
  for enterprise customers. Google Cloud generates revenues from fees received for Google Cloud Platform
  services, Google Workspace collaboration tools, and other enterprise services.
• Other Bets is a combination of multiple operating segments that are not individually material. Revenues
  from Other Bets are generated primarily from the sale of health technology and internet services.

After the segment reporting changes discussed above, unallocated corporate costs primarily include AI-focused shared R&D activities; corporate initiatives such as our philanthropic activities; and corporate shared costs such as finance, certain human resource costs, and legal, including certain fines and settlements. In the first quarter of 2023,
unallocated corporate costs also include charges associated with reductions in our workforce and office space. Additionally, hedging gains (losses) related to revenue are included in unallocated corporate costs.