Google, Alphabet posted slower sales growth, as global economic turmoil disrupted digital advertising spending.
Traffic Acquisition Costs (TAC),
the metric used to show how much the company pays other websites to acquire traffic, came in higher than Wall Street expected at $11.99 billion.
However, company said first-quarter sales rose 23% from the year-ago period, the company saw a period of massive sales growth, as small and large businesses alike flooded into the ad market seeking to win customers who spent the early period of the pandemic isolated at their homes.
Company sales advanced 41% last year, as rising inflation, supply chain disruptions, Russia’s war on Ukraine and other factors have weighed on the economic outlook and many companies, slowed spend on ads.
*Statista Chart of google yearly revenues
A rebound in travel as pandemic restrictions continued to ease helped the company’s revenue growth, analysts said.
- Alphabet reported $68 billion in sales for the first three months, meeting Wall Street expectations.
Alphabet reported top-line growth in its cloud-computing business, where it is trying to catch up to Amazon and Microsoft Corp. The cloud business remains a heavy investment area for the company, and Google Cloud Services remains unprofitable.
Google planned to buy cybersecurity firm Mandiant Inc. to better automate cyber defenses by injecting specialized intelligence into one of the world’s largest platforms for cloud-based tools.