Google parent Alphabet (GOOG, GOOGL) reported its third-quarter earnings on Tuesday, falling short of analysts' expectations on the top and bottom line, as YouTube advertising revenue came up $400 million short of estimates.
These are the most important numbers from the report compared to what Wall Street was expecting of the company, as compiled by Bloomberg.
Revenue ex-TAC: $57.27 versus $58.2 billion expected.
Earnings per share: $1.06 versus $1.25 expected.
Shares of Alphabet were down nearly 6% following the announcement.
The digital advertising market has been struck by a slowdown in spending in the past few quarters, as companies pull back their budgets amid rising inflation and interest rates.
Alphabet CEO Sundar Pichai. (AP Photo/Eric Risberg)Social media companies have been especially hammered by the cuts, with Snap reporting a net loss of $360 million and revenue growth of just 6%, its lowest yet. Meta’s Facebook has run into similar headwinds, with the company reporting its first year-over-year decline in revenue in Q2. That company is set to report its Q3 earnings on Oct. 26.
But Snap and Meta are also dealing with the aftershocks of Apple’s iOS privacy changes, which limit their ability to collect user data across the web that they then use to sell advertisements. Alphabet, however, is still able to collect plenty of user data via its search app and YouTube, providing advertisers with a safe haven from Apple’s privacy changes.
Alphabet still isn’t immune from the impact of the economic slowdown. According to Bloomberg, the search giant has cut projects at its Area 120 incubator and required workers in the group to reapply for jobs elsewhere in the company.
And according to CNBC, CEO Sundar Pichai was forced to address questions from employees who accused the firm of cutting costs when Alphabet was experiencing record profits.
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