Microsoft and Google post strong quarterly sales growth
Big tech companies are continuing a turnaround from last year, as Alphabet, Microsoft and Snap kicked off earnings season with strong sales results for the quarter ended in September.
The parent company of Google, Alphabet, reported quarterly sales of $76.69 billion on Tuesday, up 11% from a year ago. A quarter-end profit of $19.69 billion was also reported by the company.
The company also beat expectations with a 13% year-over-year sales increase to $56.5 billion. Compared with a year ago, Microsoft’s quarterly profits jumped 27% to $22.3 billion.
Google’s advertising business generated $59.6 billion in quarterly revenue, up from $54.5 billion in the previous quarter. YouTube ads, on the other hand, generated some $7.9 billion in revenue, an increase of roughly 12% from the previous year.
Sundar Pichai, the CEO of Alphabet, said on a call with analysts Tuesday that YouTube Shorts, the competitor to TikTok, reached a milestone of 70 billion daily views last quarter.
The company’s cloud business, however, reported revenue of $8.41 billion, which fell short of analysts’ expectations.
Its recent investments in AI technology helped boost its sales in the September quarter, especially in its key cloud division. Microsoft’s “intelligent cloud” business grew 19% to $24.3 billion from the year-ago quarter.
Its “productivity and business processes” business, which includes LinkedIn and Office commercial and consumer products, grew 13% year-over-year to $18.6 billion.