Google Cloud had a surprise in store for Alphabet shareholders at the company’s fiscal 2023 first-quarter results presentation. For the first time in its historythe cloud division of Alphabet has made profit.
In total, its income in the reported period was 7.4 billion dollars, 27.5% more than during the same period in 2022, when it entered 5.8 billion. But this increase is not the only noteworthy point about Google Cloud and its progress compared to the first quarter of last year. As we have mentioned, the most remarkable thing is the achievement of profits for the first time.
During the first three months of Alphabet’s 2022 fiscal year, Google Cloud posted a loss of $706 million. In the first three months of this year, has had profits of 191 million dollars. It’s a significant development for a company that was having trouble securing the third position in the cloud industry. Especially if you take into account that just three years ago, in 2020, Google lost no less than 5.6 billion dollars with its cloud division.
Of course, not everything is good news for Google Cloud. Despite having grown 27.5% this past quarter, its revenue growth has slowed. The previous quarter these grew by 332%, and the previous quarter improved by 38%. In general, investment in cloud is declining, as companies are spending much more carefully, due to the general situation.
Google Cloud includes both areas dedicated to cloud infrastructure and platform as a service (PaaS), as well as Google Workspace, a cloud-based productivity software package that includes Gmail, Google Docs, Calendar or Sheet, among other tools. . Among its most direct competitors are Amazon AWS and Microsoft Azure, both ahead of Google Cloud in market share. in the cloud computing sector.
