Alphabet, the parent company of Google and YouTube, reported better-than-expected earnings in Q1 2023, including revenues of $69.7 billion, beating the expected $68.96 billion, and earnings per share of $1.17, surpassing the expected $1.08. Alphabet also authorized a $70 billion stock buyback. Despite the industry-wide slowdown in digital advertising, Alphabet’s advertising segments exceeded expectations, with YouTube’s ad revenue coming in at $6.69 billion, a small but important beat after several tough quarters.
Additionally, Google Cloud unit turned a profit for the first time, while revenue grew 28%, the fastest of any of the company’s main business segments. Alphabet’s stock rose up to 5% in after-hours trading following the news. The company also announced $2.6 billion in charges related to layoffs and office space cutbacks, and losses related to its AI efforts totaled $3.3 billion.