Alphabet Inc. Record Sales Increase in Quarter I/2023

Alphabet Inc. recorded a sales increase of USD 58.07 billion or equivalent to IDR 861 trillion excluding partner payments in the first quarter of 2023. 

This result is higher than the average analyst projection, which is USD 56.98 billion. This increase is also a positive growth, where for the first time the company’s cloud unit is making a profit.

Although Google faces competitive threats from Microsoft and openAI through conversational chatbots using artificial intelligence (AI), Alphabet Inc.’s search advertising business keeps up the good performance.

On the other hand, YouTube generated advertising revenue of USD 6.69 billion in the first quarter of 2023 or around IDR 99 trillion. Even though it is still down from the first quarter of 2022, these results still exceed estimates considering that YouTube has hampered the company’s performance in the last few quarters.

Read also Google Prepares to Introduce Generative AI to Ads Business

Alphabet Inc’s own closely monitored: cloud unit, reported a profit of USD 191 million or IDR 2.8 trillion. Alphabet Inc. told investors that it has shifted reporting of some fees from Google Cloud to Google Services which will likely help its long-term profitability campaign.

Alphabet Inc.’s Chief Financial Officer, Ruth Porat, also said that the company will remain committed to delivering long-term growth and creating capacity to invest. She also claims that Alphabet has seen ongoing headwinds in what the company describes as a continuing challenging macroeconomic environment.

“We remain committed to delivering long-term growth and creating capacity to invest in our most attractive growth areas by re-engineering our cost base,” she said.

Alphabet posted a 3% increase in revenue in the first quarter of 2023. The company’s net profit is also known to be USD 15 billion. This value is higher than Wall Street estimates. The company also approved a share buyback plan of up to USD 70 billion.


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