Google-parent Alphabet reported fourth quarter sales that missed analyst’ expectations, amid an ongoing reduction in marketing spending from clients globally. The company also mentioned a multi-billion hit to current quarter earnings due to its recent round of job cuts.
Fourth-quarter 2022 earnings of $1.05 per share missed the FactSet consensus estimate of $1.18 a share.
For the three months ending in December, revenues rose 1% to $76 billion, around $620 million shy of the Street expectations.
Revenues from the Google services business fell -2.2% year over year to $67.84 billion (89.2% of the total revenues). Search revenues from Google-owned sites dipped -1.6% year over year to $42.6 billion.
Google said revenues from YouTube slipped -7.7% to around $7.96 billion while overall ad sales fell - 3.6% to $59.04 billion.
Total Google advertising revenues were down -3.6% year over year to $59.04 billion ( 77.6% of the total revenues).
Alphabet mentioned that it expects to incur employee severance and related charges of $1.9 billion to $2.3 billion from the layoff of 12,000 people.