Shulou(Shulou.com)11/24 Report--

Beijing time on February 3 news, Google parent company Alphabet today released the fourth quarter of fiscal year 2022 ended December 31 and the full year unaudited financial results.

Alphabet's fourth-quarter revenue was $76.048 billion, up 1% from $75.325 billion a year earlier, and net profit was $13.624 billion, down 34% from $20.642 billion a year earlier, according to the earnings report.

Alphabet's fourth-quarter revenue and earnings per share fell short of analysts 'expectations, dragging its shares down more than 3 percent after hours.

Share price performance:

Alphabet shares fell 3.74% after hours

Alphabet Class A shares (GOOGL) opened Thursday at $105.80 on the Nasdaq Stock Exchange. Alphabet shares rose $7.31, or 7.28 percent, to close at $107.74 Thursday. Alphabet shares fell $4.03, or 3.74 percent, to $103.71 as of 16:36 ET Thursday (5:36 GMT Friday). Over the past 52 weeks, Alphabet shares have traded as high as $149.68 and as low as $83.34.

Highlights of fourth quarter results:

- Revenue was US $76.048 billion, up 1% from US $75.325 billion in the same period last year and up 7% year-on-year at constant exchange rates;

Total advertising revenue was $59.042 billion, down 4% from $61.239 billion a year earlier;

Google Cloud revenue was $7.315 billion, up 32% from $5.541 billion a year ago;

Revenue from other businesses was $226 million, up 25% from $181 million a year earlier;

Traffic acquisition costs (TAC) were $12.925 billion, down 4% from $13.427 billion in the same period last year; net other expenses were $1.013 billion, compared with $2.517 billion in other income recorded in the same period last year;

- Operating profit was US$18.16 billion, down 17% from US$21.885 billion in the same period last year; operating profit margin was 24%, down 5 percentage points from 29% in the same period last year;

- Net profit was US $13.624 billion, down 34% from US $20.642 billion in the same period last year;

Diluted earnings per share were $1.05, down 31% from $1.53 a year earlier;

- Total number of employees was 190,234, compared with 156,500 in the same period last year.

Redundancy plan:

Google said that in January 2023, the company announced about 12,000 job cuts. We expect employee severance payments and related expenses to range from US$1.9 billion to US$2.3 billion, most of which will be recognized in the first quarter of 2023. In addition, Google is taking action to optimize its global office space, which is expected to incur approximately $500 million in related exit costs in the first quarter of 2023. As Google further evaluates its real estate needs, more spending may be incurred in the future.

Highlights of 2022 Annual Results:

- Revenue was US $282.836 billion, up 10% from US $257.637 billion in the previous year and 14% year-on-year at constant exchange rates;

Net profit was $59.972 billion, down 21% from $76.033 billion a year earlier.

Executive comments:

Alphabet CEO Sundar Pichai said: "Our long-term investment in deep computer science puts us in a very good position when AI development reaches an inflection point. I'm excited about the AI-driven leaps we're about to announce in search and beyond. Cloud computing, YouTube subscriptions, and our Pixel devices are also gaining momentum. We are on an important journey to redesign our cost structure in a lasting way and financially build a sustainable, vibrant and growing business at Alphabet's corporate scale. "

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