Google (Part of Alphabet Inc) Q1 Report 2023

Sundar Pichai, CEO of Alphabet and Google, said: “We are pleased with our business performance in the first quarter, with Search performing well and momentum in Cloud. We introduced important product updates anchored in deep computer science and AI. Our North Star is providing the most helpful answers for our users, and we see huge opportunities ahead, continuing our long track record of innovation.”

Ruth Porat, CFO of Alphabet and Google, said: “Resilience in Search and momentum in Cloud resulted in Q1 consolidated revenues of $69.8 billion, up 3% year over year, or up 6% in constant currency. We remain committed to delivering long-term growth and creating capacity to invest in our most compelling growth areas by re engineering
our cost base.”

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

Revenues 2023:
Google Services                    $ 61,961
Google Cloud                             7,454
Other Bets                                    288
Hedging gains (losses)                 84
Total revenues                    $ 69,787
Operating income (loss):
Google Services                         $ 21,737
Google Cloud                                      191
Other Bets                                     (1,225)
Corporate costs, unallocated     (3,288)
Total income from operations $ 17,415

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.