First Look at GOOG Q1 2022 Financial Results-Google Earnings?

Google (GOOG) reported Q1 2022 financial results earnings on April 26.

The revenue beat market expectations, but earnings missed Wall Street consensus estimates. Let’s look into Google’s latest financial reports.

Revenue and Earnings

In Q1 2022, Google’s Revenue was $68.01 billion, up from 23% a year ago. Income From Operations was $20.09 billion, an annual growth rate of 22.2%, and the operating margin rate remained at 30%.

In terms of Net Income, it was $16.44 billion, which fell 8.3% compared with a year ago- but the main difference in this part is that there was a recognized gain of $4.85 billion in the first quarter of last year. And this year, there was a non-operating recognized loss of $1.16 billion, which have little to do with actual operating conditions. In terms of Diluted EPS, it reached $24.62 for this quarter.

Operating Revenue details

First, let’s look at Google Advertising revenue part. In terms of Google Search & other business, revenue this quarter reached $39.62 billion, and YoY’s annual growth rate reached 24.3%, themost vital growing part of Google’s advertising business.

YouTube ads, which have been the fastest-growing of Google Ads for the past few years, generated $6.87 billion in revenue this quarter, an annual growth rate of 14.4%, the lowest in recent years.
If Google’s search ad growth rates are compared to YouTube ad growth rates over the past few quarters, we can clearly see the impact of Apple’s privacy policy.

In Google’s third-party ad network business, revenue for the quarter reached $8.17 billion, an annual growth rate of 20.2%, more than YouTube. The main reason is that compared to the advertisements in the APP, the online advertisements of the website suffer relatively less impact on privacy rights, and a relatively high proportion of this part of the business comes from website advertisements.

In Google’s other businesses revenue for the quarter reached $6.81 billion, an annual growth rate of 4.9%. Among them, YouTube’s subscription service revenue is the main source of growth momentum. However, Google Play’s revenue is declining.

Next, let’s look at the revenue of Google’s Cloud services. This quarter, Google Cloud reached $5.82 billion, with an annual growth rate of 43.8%.
However, the operating loss of the cloud business actually increased compared to previous quarters, with an operating loss of $930 million.
For Other Bets, revenue this quarter set a record high of $440 million, with an annual growth rate of 122%.

NOTE: This article does not represent investment advice and is solely the author’s opinion on managing the author’s own investment portfolio. Readers are expected to perform their own due diligence before making investment decisions.