Alphabet Inc. Q2 FY2022 Earnings Call

· Earnings call transcript and AI-powered summary

Quarter Overview

  • Total revenue was $69.7 billion, up 13% year-over-year (up 16% in constant currency). This represents slower growth compared with the very strong recovery period in Q2 2021.
  • Operating income was $19.5 billion, unchanged from the prior-year period due to higher operating expenses.
  • Net income was $16 billion.
  • Free cash flow totaled $12.6 billion for the quarter.
  • Foreign exchange created a 3.7 percentage-point revenue headwind, reversing from a tailwind in Q2 2021.

Google Services Performance

  • Google Services revenue reached $62.8 billion, up 10% year-over-year.
  • Search revenue grew 14% to $40.7 billion, driven by strong trends in travel and retail. Growth was solid but notably slower versus the extraordinary comps of Q2 2021.
  • YouTube ad revenue increased 5% to $7.3 billion. Growth decelerated significantly compared to the prior year due to tough comps and advertiser pullbacks.
  • Network advertising revenue grew 9% to $8.3 billion.
  • Other revenues declined 1% to $6.6 billion, largely due to previously announced Google Play fee changes and lower user engagement compared with earlier in the pandemic.
  • Traffic acquisition costs (TAC) were $12.2 billion, up 12% year-over-year.
  • Operating income for Google Services was $22.8 billion, up 2% year-over-year.

Continue Reading

Unlock the full AI-powered summary with key highlights, financial performance, and analyst Q&A.

Upgrade to Professional
Operator: Welcome, everyone, and thank you for standing by for the Alphabet Inc. Second Quarter 2022 Earnings Call. At this time all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions] I would now like to hand the conference over to your speaker today, Jim Friedland, Director of Investor Relations. Please go ahead. Jim Friedland: Thank you. Good afternoon, everyone, and welcome to Alphabet’s second quarter 2022 earnings conference call. With us today are Sundar Pichai, Philipp Schindler and Ruth Porat. Now, I’ll quickly cover the safe harbor. Some of the statements that we make today regarding our business, operations and financial performance may be considered forward-looking, and such statements involve a number of risks and uncertainties that could cause actual results to differ materially. For more information, please refer to the risk factors discussed in our most recent Form 10-K filed with the SEC. During this call, we will present both, GAAP and non-GAAP financial measures. A reconciliation of non-GAAP to GAAP measures is included in today’s earnings press release, which is distributed and available to the public through our Investor Relations website located at abc.xyz/investor. And now, I’ll turn the call over to Sundar. Sundar Pichai: Thank you, Jim, and good afternoon, everyone. I’m proud of how our teams continue to build helpful products and experiences for people and part

Continue Reading

Unlock the full earnings call transcript with speaker labels and formatted dialogue.

Upgrade to Professional