Google Cloud sees huge revenue jump
Revenue rose by 52 percent to reach $2.78bn during Q1
When you purchase through links on our site, we may earn an affiliate commission.Here’s how it works.
Google’s parent company Alphabet has announced its latest financial results revealing thatGoogle Cloud revenueincreased by 52 percent to reach $2.78bn during the first quarter of this year.
Revenue from the company’s cloud computing division helped it beat Wall Street’s revenue expectations during a time when Google’s advertising business experienced a slowdown as a result of the coronavirus outbreak.
Chief financial officer at Alphabet and Google, Ruth Porat provided further insight on Alphabet’s financial results in anearnings release, saying:
“Our business, led by Search,YouTube, and Cloud, drove Alphabet revenues to $41.2 billion, up 13% versus last year, or 15% on a constant currency basis. Performance was strong during the first two months of the quarter, but then in March we experienced a significant slowdown in ad revenues. We are sharpening our focus on executing more efficiently, while continuing to invest in our long-term opportunities.”
Demand for cloud services
Alphabet’s cloud computing division includes Google Cloud Platform as well as G Suite which has seen increased usage as more employees wereworking from homeduring the beginning of the year due to the pandemic.
According to Porat, Google Cloud’s revenue increase during Q1 2020 was driven by “significant growth” in Google Cloud Platform and “ongoing strong growth” inG Suite. She also pointed out that Google Cloud has expanded into new areas including healthcare, media and communications and supply chain optimization.
Alphabet added 4,100 new employees to reach 123,048 total employees during the first quarter with Google Cloud leading the charge with the largest employee increase among the company’s product groups in both technical and sales roles. However, during the remainder of 2020, the company plans to slow down the pace of hiring and it will only fill roles in “a small number of strategic areas”, according to Alphabet and Google CEO,Sundar Pichaiwho shared the news in a conference call with analysts and investors.
Are you a pro? Subscribe to our newsletter
Sign up to the TechRadar Pro newsletter to get all the top news, opinion, features and guidance your business needs to succeed!
Alphabet’s overall revenue rose by 13 percent to more than $41bn for the quarter, beating Wall Street estimates of $40.3bn.
ViaGeekWire
After working with the TechRadar Pro team for the last several years, Anthony is now the security and networking editor at Tom’s Guide where he covers everything from data breaches and ransomware gangs to the best way to cover your whole home or business with Wi-Fi. When not writing, you can find him tinkering with PCs and game consoles, managing cables and upgrading his smart home.
LG Electronics sets ambitious B2B revenue goal to offset declining consumer demand
New fanless cooling technology enhances energy efficiency for AI workloads by achieving a 90% reduction in cooling power consumption
After Arcane season 1 ended on a stunning cliff hanger, its creators say it was ‘always the plan’ for those characters to die in the season 2 premiere
