Alphabet (GOOG) 25 Apr 232023 Q1 Earnings call transcript

Welcome, everyone. Thank you for standing by for the Alphabet First Quarter 2023 Earnings Conference Call. [Operator Instructions] I would now like to hand the conference over to your speaker today, Jim Friedland, Director of Investor Relations. Please go ahead.

Thank you. welcome first and conference XXXX everyone call. afternoon, to quarter Alphabet’s earnings Good are Schindler Pichai, us Sundar With today Philipp and Porat. Ruth

will I quickly the Safe Now Harbor. cover

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Googlers this you, first, to On customers incredible their our all that collaboration; thank Ruth, of you. partners and note, work for a and and big over trust for second, quarter. to to their all

Thank you, Philipp.

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focused remain In driving of Cloud, performance, to we terms on given substantial the profitable invest long-term in operating while opportunity. growth continuing

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Sundar, will your take questions. you. Thank now I and Philipp

question you. Thank Instructions] Brian Nowak Morgan ahead. from comes Please [Operator Your Stanley. first of go

taking my questions. for Thanks two. I have Great.

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you, Thank Great. both.

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Thank you, Ruth.

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in are And we and it’s customers Philipp? progress definitely trying an to efficiencies where help we area so make in their leaning can.

Yes.

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Justin of Thank you. Please go BAML. will come Post question The next from ahead.

a Thanks Ruth. lot. Sundar for one Great. Maybe for and one

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benefit You in will of see the some ‘XX.

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The Michael next MoffettNathanson. you. ahead. Please go of Thank comes question Nathanson from

demand? some of Other you pre-pandemic how the more I between you of side? of it of some for in the give Anything advertising the are in then kind have at e-commerce, to you and are set of the on put level you service what higher for changing and for help levels and Philipp, to looking the of terms may trying you assets? levels? Bets Thanks. Other significantly Has returned Bets impact doing on can rethinking structures there evaluating on and versus goods of under goods And the assets? – in seen the be then are Philipp to understand being demand? capital hood Bets back and Other to trying to Anything demand managing a sellers get about maybe does one have efficiency Can services demand changes Ruth, the of of Ruth. way diligent, goods how and us and we this terms the slowing you And help Search one back understand any sellers services. us pre-pandemic cost

was a you. to hear It hard bit

were You breaking up.

to address ongoing I Other attractive moderating innovation, that through overall technology we the use long-term of cost as I at models And are the and looking I the the are at are you as higher I very going Bets. to and those. expense growth, have absolutely are drive similarly was think returns. I and of they some I Look, relevant as think we second at on So, what as relates the That the And to force, focused indicated it. as we a we the talked were higher these think looking are there the we value But generate. the as has what’s a question, to capital. Bets, to it work crackling. operating make Hopefully, are looking pace what mindful we of are to environment, we focus path sure at returns. its our deep the we financial repeatedly, – heard going that return continuing we to core, in to be returns in the are generate on am what’s models way are the is the capital and investment across operating and affect this as core at to of invested heard return cost it reduction about looking worked value on capital. when consistent does Yes, Bets start of we creation them we looking we as we Other correctly, delivering focus and how what been are Other is on And trajectory we most on we think went can

a is part point of the an that’s question important operating underlying broader Your assumptions. one about

don’t Okay. I Philipp, the one? if know you heard first

Yes.

modestly year-over-year, I and it understood come increase and first reflecting entertainment. correctly. On again, in finance and but Search, by offset in verticals, clearly, media hope partially In part, didn’t I revenues the an quite the retail decline grew travel across again,

quarter. at many color is profitability more the amidst this really some reflects would term in as actually on performance verticals. last ROI on and of the I The the are the, ongoing impact headlines, verticals I headwinds, really an saw resilience reflects say out called say, ability to what’s similar There pullback quarter. excluding elsewhere, focused with and broadly, Search, So, we I what measurable in maybe surface companies FX and other very reported of Search’s of key uncertainty to deliver was performance, shorter the Search uncertain additional would notwithstanding well. the budgets environment. no a being across it demand

Thanks. That’s clear. Okay.

ahead. question go Mark next Please comes Evercore. of from The you. Thank Mahaney

ad corner I case? Can have on versus on YouTube. revenue accounting cloud with march Search about the you Do changes and business, questions, a profitability, turned the you talked I try you very steady Philipp, network Okay. think that then towards any please? more a now. of pullback two the And why in the was of even this thoughts Ruth, kind

here profitability. be you. long-term – why You the Thank for profitability there shouldn’t wouldn’t as for any a cloud? that kind segment be profitable to business the while scale, are that growing sustainably could continues about of we profitable could before or sustainably that, But talked wobbly starting be it they it’s business from reasons why

Why don’t add, those. Yes. just will I both of I take

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question. important a it’s think really I

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Okay. Ruth. you, Thank

you. Colin Sebastian Thank from question ahead. Baird. come go last Please our And will from

as well. of I innovation. me accelerate talked Sundar, the that for first, Two AI the about teams, to helping I consolidation you. you Thank guess think Great.

look across shopping curious, retail, I that platform out milestones then should front? product this are So, regarding year? we what look that? to am for And on that some that specifically on you. your are the evolving should Thank what Maybe we should how that similarly, and milestones on related Philipp, with comments about for think we the out consolidation, payments, specifically

have think really for accomplishments of by Thanks. stage set DeepMind. decade AI Their this world-class – last the I the I quite excited collective teams, am two and moment. in the over bringing both Brain

talent that building into to obviously our to access help getting to and the resources getting side side in iterate models is capabilities the that will and able core capable both definitely being work they responsibly the us build. product and computational way more a consumer can and is doing so cloud all it account help critical so will going both and The and coordinated be need, pool us And which on virtuous pool taking cycle going. safely together customers our too, and

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

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

everyone. you for concludes you participating. conference call. Thank This Thank today’s

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