Alphabet (GOOG) 27 Jul 222022 Q2 Earnings call transcript

Welcome, everyone, and thank you for standing by for the Alphabet Inc.

Second Quarter 2022 Earnings Call. At this time all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions] I would now like to hand the conference over to your speaker today, Jim Friedland, Director of Investor Relations. ahead. go Please

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Thank you, Philipp.

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Doug. Thanks,

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next Brian And the question from Morgan line of from Nowak comes our Stanley.

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can ask YouTube. I two-parter Maybe a on

might then, digestion or comps the versus you and within XX competitive over think to direct Can you YouTube better development comps the you in growth broader should businesses the positioning XX build when going how how response video video ago quarters. and tougher the growth look YouTube video, us maybe saw from And how YouTube growth we periods us the a some about the against do how ahead think in out months, of that you called long-form competitive of move landscape? couple aligning last How and about the short-form to of consumption and product of do You’ve tools the year about sense tougher those next broader of give that YouTube? better a periods over lead have ahead at enabling their the for and to the landscape creators product you for to think forward? businesses away

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the asked So, but you that’s obvious math, question.

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to you YouTube invest those. users, in to opportunity And we’re maybe why really the take So, I But pass creators. Philipp and working into step deliver it deeper ecosystem entire to for experiences to it a to our continuing don’t those. again, and goes the through

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the live On a address of side, intent commerce. app live to and a there’s across campaigns response action product campaigns think feeds we and we’re commerce of different number runway where on things testing and lot direct commercial between still video features, new YouTube

to we’re about the with So, especially excited here, creators. opportunities brands connect

and We’re also where the of excels. relevance by YouTube ends ability about to YouTube reach action really giving I advertisers talked both funnel, earlier, drive the advertisers seeing at which and is

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YouTube. being watched We’re in month. billion locked users seeing this earlier across Sundar Shorts that by multiple every plus X.X platforms, including noted are

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next our MoffettNathanson. comes Nathanson question from from And Michael

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it So term -- as working much a dealing the necessarily trend macro is but as uncertainty as longer I with. through don’t everyone view

continues opportunity It’s long-term opportunity. is move of a this our an extraordinary terms their to in in still view cloud. the be early question, that to then, your And margin and enterprise are customers

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question next comes from our of line Brent And Jefferies. the Thill from

lean buyback. Ruth, to good the into you see

could buyback curious I was from you other think away have highest buyback. ever, your companies about of it just ultimately thinking strategy and about allocation your capital it. tech run if kind the I’m while how talk you’re

mean, I call, the capital about and of allocation investing growth is strategy on this cash you. Thank at talking long-term heart what we’ve flow. really been in the driving

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believe investments in up billion we to it’s do that the $XX valuable and pleased that yet very continue authorization we make. set to We’re of were to increase another tool the overall able

to pleased have So, it.

from Mark question from ISI. Thank comes our you. Evercore Mahaney next And

that beginning had less or the of secondly, you any far, have YouTube these then, you by so than on just in traditionally advertisers. about inventory that Philipp, be Shorts. can have comments monetizing inventory the YouTube on other term that there Do you pullback lessons the monetized any whether on view you’ve some drawn is you’ve And talk historically? long or better

retail talk be advertisers would you you what’s in back helpful. in pulling and maybe automotive? weakness left? travel, so out about especially Europe verticals and Any financial are on color strength seeing you. Western of Does So, that in mean are which Thank

the I side, sticking before. monetization made with Shorts the the am I side, on on So, statement

encouraged we’re are seeing. the results that by We

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the by On and impacted as multiple advertisers by number reflects advertisers, on And by actually the as Ruth as spend of And factors. in the spend a mentioned, sectors. between uncertainty pullback uncertainty, pullbacks network some in to for advertisers, from it’s YouTube factors challenging the about disaggregate the and can quarter and each some of and well. you the difference were news companies see some companies second

And our comes from from question Baird. Colin next Sebastian

Maybe Sundar, one the of sharpening the on focus. follow-up,

of growth us worth lower this monetization? queries good key over now, or secondly, You any maybe how to monetization some talked also would as focus. Does AI given cloud out visual of may areas given priority the search, course, search. that And data a areas you strong around translates give search calling of and that tech that Are so about, how conversational that there monetization long-term types being there. different last focus? then, be greater you’ve you. and and Thank relative or in Curious into impact space capability year

we Thanks. moments Good question. this. can about And way it is look, like through think one

applied like to So, the now is for is Search example, from work, We close do or to things we are obviously AI investing research, pure research AI. very and which areas actually within et which deeply research happening in cetera. everything YouTube,

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products applications, So, we’ll progress long-term focusing drive into and we’ll view. cutting-edge on real and stay research a that turning keep and take

from And Sandler line from the Ross comes Barclays. our last of question

segment. just maybe So up the retail on following

Walmart, in Ruth are inventory some the cutting like So, to me the what sounded chain to be said biggest on world, and just looking struggling costs from cut that supply really are YouTube. retailers and inflation they might of about

the some the just curious, from in You advertisers, I’m category you -- guys Thanks guys thing perspective lot. future? mentioned larger, a smaller using in are but might doing search of maybe keep out it the an drop off PMax as just can what timing to you omnichannel is? a retail keep for or that So, strategy as point for flowing, some just are a how flesh elaborate you and that on it what that product strong spend at that is to

Yes. Thank is you. This an question. excellent

important I an noted apparel in driver the Search in quarter. be clothing called Search my to I interest out women’s As second categories, saw like We earlier. several continued strong retail opening remarks, in of categories.

them is worth we our overall to growth, offline also shopping we’re which clarifying our one helping remains build services, to products presence drive online think retail and From their omnichannel important just it’s all that. sales, win, it. our perspective, retail, and right, a digital I and you’re absolutely way obviously through we’re when talk continue and both approach strategy about of talking runs ads about of to trend do piece retailers to the

quite QX, doing I quarters, few talked adoption last saw how bit the increase for about a think QX. of, in I’ve the Over year-over-year ways Like in we this in we’re a all or of variations. inventory businesses and curbside store, location-based pickup, These and mobile products stock, their are first in-store, all showcase ads. online local helping available different and sizes example, for

on the connect businesses And have these platforms. with Additionally, on commerce has been tools building our services, reach smart will excited and focused businesses. and products with shopping customers great Max, directly and Performance we’re always that offline we’re been which our and also both, users into campaigns pleased from mentioned, migration and increased next our really you about what’s performance. increased midway help through across focus retail the building especially and And Search YouTube. advertisers and for across these remain for helpful online we And experiences both, features

I’d that turn Jim concludes remarks. like Thank to session. question-and-answer our Friedland the for closing any back And you. conference over to

today. We us XXXX call. and joining for quarter on everyone Thank look forward with again Thanks you a speaking evening. our to third you, have good

may participating, you. Thank disconnect. concludes This today’s you and call. you for conference Thank now