Google (Part of Alphabet Inc) Full-Year Report 2022

Sundar Pichai, CEO of Alphabet and Google, said: “Our long-term investments in deep computer science make us extremely well-positioned as AI reaches an inflection point, and I’m excited by the AI-driven leaps we’re about to unveil in Search and beyond. There’s also great momentum in Cloud, YouTube subscriptions, and our Pixel devices. We’re on an important journey to re-engineer our cost structure in a durable way and to build financially sustainable, vibrant, growing businesses across Alphabet.”

Ruth Porat, CFO of Alphabet and Google, said: “Our Q4 consolidated revenues were $76 billion, up 1% year over year, or up 7% in constant currency, and $283 billion for the full year 2022, up 10%, or up 14% in constant currency. We have significant work underway to improve all aspects of our cost structure, in support of our investments in our
highest growth priorities to deliver long-term, profitable growth.”

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

Revenues 2022:
Google Services                   $ 67,838
Google Cloud                              7,315
Other Bets                                     226
Hedging gains (losses)               669
Total revenues                    $ 76,048
Operating income (loss):
Google Services                           $ 21,101
Google Cloud                                     (480)
Other Bets                                         (1,631)
Corporate costs, unallocated          (830)
Total income from operations $ 18,160

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.

Unallocated corporate costs primarily include corporate initiatives, corporate shared costs, such as finance and
legal, including certain fines and settlements, as well as costs associated with certain shared R&D activities.
Additionally, hedging gains (losses) related to revenue are included in corporate costs.