Google (Part of Alphabet Inc) Q3 Report 2023
Sundar Pichai, CEO, said: “I’m pleased with our financial results and our product momentum this quarter, with AIdriven innovations across Search, YouTube, Cloud, our Pixel devices and more. We’re continuing to focus on making AI more helpful for everyone; there’s exciting progress and lots more to come.”
Ruth Porat, President and Chief Investment Officer; CFO said: “The fundamental strength of our business was apparent again in Q3, with $77 billion in revenue, up 11% year over year, driven by meaningful growth in Search and YouTube, and momentum in Cloud. We continue to focus on judicious capital allocation to deliver sustainable financial value.”
The following data presents our revenues and operating income (loss) (in millions; unaudited):
Revenues 2023:
Google Services $ 67,986
Google Cloud 8,411
Other Bets 297
Hedging gains (losses) (1)
Total revenues $ 76,693
Operating income (loss):
Google Services $ 23,937
Google Cloud 266
Other Bets (1,194)
Corporate costs, unallocated (1,666)
Total income from operations $ 21,343
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.