Google’s parent company Alphabet’s financial results fall short of expectations-Ad revenue is sluggish Japan Top News

Google’s parent company Alphabet posted lower-than-expected third-quarter results (ending September 30) on October 25.announced. The company is plagued by inflationary economic conditions and slowing advertising revenue.

Courtesy Stephen Shankland/CNET

Alphabet had revenue of $69 billion and net income of $13.9 billion ($1.06 per share) in the third quarter. Yahoo Financeaccording to tally, analysts expected revenue of $70.6 billion and earnings of $1.25 per share. Net profit decreased by 27% year-on-year.

The disappointing results come as the company’s main source of revenue, advertising, is hit hard by the changing economic climate.Inflation in the U.S. in September was 8.2%and outside the USover 50In some areas, consumer purchasing power is declining. Advertising revenue was $54.4 billion, up 2.5% year-over-year but down 3% from the second quarter. In the same period last year, Google’s ad revenue was up 69% year-over-year as advertisers struggled to meet consumer demand during the pandemic.

This is the third straight quarter that Alphabet has underperformed expectations.

Google continued hiring in the second quarter, but CEO Sundar Pichai said in July thatPolicy to reduce employmenthad clarified. The company’s workforce increased by 12,765 between June and September, from 174,014 to 186,779. In SeptemberAcquisition of cybersecurity company MandiantWhat I did is one of the reasons.