- Alphabet reported a profit on Thursday, announcing that Google Cloud had sales of over $ 3 billion, up 43% year over year.
- Google Cloud saw a 52% year-over-year increase in the last quarter. This shows that sales growth in the unit is slowing.
- During a conversation with investors, Ruth Porat, CFO of Google, attributed the slowdown to price changes at G Suite, the productivity software suite.
- Google Cloud continued to be a bright spot in Alphabet’s earnings report, where Google saw its first quarterly sales decline since going public.
- You can find more stories on the Business Insider homepage.
Google Cloud's revenue growth shows signs of slowing, but Google is still aggressively investing in the unit by spending a lot of money on hiring and building new data centers.
On Thursday, Alphabet announced that Google Cloud had sales of over $ 3 billion last quarter. This is a 43% increase from $ 2.1 billion in the same period last year. However, this growth rate is lower than in the previous quarter, when Google Cloud saw a 52% year-over-year increase in sales.
Ultimately, Google Cloud was one of the bright spots for Alphabet in this earnings report. While the earnings report slightly exceeded Wall Street expectations overall, Google saw first quarter sales since going public as Alphabet had total sales of $ 31.6 billion, compared to $ 31.7 billion in the same period last year.
Google Cloud continues to place great emphasis on hiring and building new data centers. Since Thomas Kurian, CEO of Google Cloud, joined him at the beginning of last year, the company has been leading the way and has attracted talent from companies such as Oracle and SAP.
The company announced Thursday that it could also sell its infrastructure, data and analytics offerings. Earlier this month, Google Cloud announced a new product that would allow customers to run their flagship data warehouse product BigQuery on multiple clouds, even on competitors like Amazon Web Services and Microsoft.
"GCP saw strong revenue growth in the first quarter and overall revenue growth was well above the cloud again," said Ruth Porat, CFO of Google, when calling on investors.
Porat attributed the lower revenue growth in Google Cloud compared to the previous quarter to G Suite, its productivity software, and in particular to a "declining" price increase, which came into effect last April and is now reported as part of normal revenue. Still, she says, G Suite has maintained "healthy growth," especially given the continuing boom in remote work.
"G Suite products, and Google Meet in particular, were absolutely critical," said Alphabet's CEO, Sundar Pichai, on the call to win. "We quickly redesigned it and made it widely available to help millions of companies and other organizations connect and collaborate."
Continue reading: According to analysts, Google Cloud did some "myth busting" this week about data protection and attracting large customers to win the war against Amazon and Microsoft
Google Cloud is currently still behind the cloud competitors AWS and Microsoft. However, it has worked to get more involved in attracting corporate customers by investing in privacy and security, and even announced some new customers in the past quarter, such as Goldman Sachs, Deutsche Bank, Verizon, Fox Sports and the French car company Renault.
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