Although Google Cloud turned a loss of close to $1 billion in the most recent quarter, parent company Alphabet seems unconcerned.
Alphabet recently revealed its second quarterly report of 2022. Revenue totalled $69.7 billion. $40 billion came from Google Search and associated operations, $7.4 billion from YouTube advertisements and $8.3 billion from Google’s advertising network.
Google Cloud generated $6.3 billion in revenue, a 35% increase over the $4.6 billion of Q2 2021. However, the $858 million loss was 45 percent higher than the $591 million recorded last year.
Alphabet says it isn’t worried
During the company’s earnings webcast, CEO Sundar Pichai stated that Google Cloud remains a significant marketing opportunity. Pichai believes the cloud market is in an early phase.
Alphabet CFO Ruth Porat also chimed in, saying the business is spending to sustain long-term growth on the route to profitability. Neither Porat nor Pichai provided a timetable for Google Cloud to turn a profit.
Pichai said that Google’s continuous investment in AI might aid in developing distinct products. While Google Cloud continues to lose money, the rest of Alphabet is doing alright.