{"id":32847,"date":"2019-10-31T21:49:16","date_gmt":"2019-10-31T18:49:16","guid":{"rendered":"https:\/\/prohoster.info\/blog\/finansovyj-otchyot-google-vsyo-vrode-by-neploho-no-i-nichego-horoshego\/"},"modified":"2019-10-31T21:49:16","modified_gmt":"2019-10-31T18:49:16","slug":"finansovyj-otchyot-google-vsyo-vrode-by-neploho-no-i-nichego-horoshego","status":"publish","type":"post","link":"https:\/\/prohoster.info\/en\/blog\/news\/finansovyj-otchyot-google-vsyo-vrode-by-neploho-no-i-nichego-horoshego","title":{"rendered":"Google's Financial Report: Everything Seems Fine, But Nothing Great","gt_translate_keys":[{"key":"rendered","format":"text"}]},"content":{"rendered":"
Alphabet, the parent company of internet giant Google, has published its financial results for the first quarter of 2019. According to the reporting documents, its revenue for the specified period amounted to $36.3 billion, which is a 17% increase compared to the first quarter of the previous year. However, the revenue growth rate has noticeably slowed down, as the increase in 2018 compared to 2017 was more significant at 26%.<\/p>\n
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As noted by Alphabet's Chief Financial Officer Ruth Porat, the main 'drivers' of the corporation's revenue growth were mobile search, the video hosting service YouTube, and the Cloud service. Meanwhile, the company's workforce exceeded 100,000 employees, whereas a year earlier, it barely surpassed 85,000.<\/p>\n
However, not everything in the report is so rosy. The 'operating profit' for the first quarter of 2019 was reported at $6.6 billion, while a year earlier, the corporation earned $7.6 billion. An even greater disparity is observed in net profit, which fell from $9.4 billion to $6.65 billion. Immediately after these results were announced, Alphabet's stock price dropped by 7%. Clearly, the situation was exacerbated by a \u20ac1.49 billion fine imposed on Google. According to a decision made by the European Commission at the end of March, this amount will be paid by the internet giant for abusing its dominant position in the online advertising market.<\/p>\n
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Google's performance in producing devices under its own brand was also far from ideal. Although the company did not disclose the financial figures of its 'hardware' business separately, CFO Ruth Porat admitted that sales of Pixel smartphones had declined due to the flagship smartphone market's influence. She did not specify what exactly this influence entailed, but it likely referred to several negative factors, including competition from Samsung and Apple, and the trend of rising prices for premium devices, which currently hover around $1000, forcing consumers to postpone purchasing new devices. The situation may improve with the launch of more affordable models,
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