Both Google (Alphabet) and Microsoft (Bing) have announced earnings last night and both companies are down over 5% in pre-marketing trading after the news. Google’s ad revenue was up only 4.2%, while Microsoft’s search ad revenue, mostly from Bing, seemed to be up way more, at 16% – year over year.
- Google Search ad revenue went from $37,926 to $39,539 (in millions) an increase of 4.25 percent
- Microsoft Bing search ad revenue increased 16%
The previous quarter, Google saw their search ad revenue up about 13.5% and before that both Google and Microsoft ad revenue was up 22% each, and the quarter before that, they were both up about 32% each.
So both are slowing with ad revenue growth but Google is growing much more slowly this past quarter.
From the earnings release from Alpahbet/Googel:
Sundar Pichai, CEO of Alphabet and Google, said: “We’re sharpening our focus on a clear set of product and business priorities. Product announcements we’ve made in just the past month alone have shown that very clearly, including significant improvements to both Search and Cloud, powered by AI, and new ways to monetize YouTube Shorts. We are focused on both investing responsibly for the long term and being responsive to the economic environment.”
Ruth Porat, CFO of Alphabet and Google, said: “Our third quarter revenues were $69.1 billion, up 6% versus last year or up 11% on a constant currency basis. Financial results for the third quarter reflect healthy fundamental growth in Search and momentum in Cloud, while affected by foreign exchange. We’re working to realign resources to fuel our highest growth priorities.”
“In a world facing increasing headwinds, digital technology is the ultimate tailwind,” said Satya Nadella, chairman and chief executive officer of Microsoft. “In this environment, we’re focused on helping our customers do more with less, while investing in secular growth areas and managing our cost structure in a disciplined way.”
“This quarter Microsoft Cloud revenue was $25.7 billion, up 24% (up 31% in constant currency) year-over-year. We continue to see healthy demand across our commercial businesses including another quarter of solid bookings as we deliver compelling value for customers,” said Amy Hood, executive vice president and chief financial officer of Microsoft.
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