Google Alphabet (GOOG) vs Microsoft Bing (MSFT) Ad Revenue

Google (Alphabet) and Microsoft (Bing) both reported earnings last night and both companies lost more than 5% in pre-market trading following the news. Google’s ad revenue was up just 4.2%, while Microsoft’s search ad revenue, mostly from Bing, appeared to be growing much more, at 16% – year-over-year.

  • Google search advertising revenue increased from $37,926 to $39,539 (in millions), an increase of 4.25%.
  • Microsoft Bing search ad revenue grew 16%

In the prior quarter, Google saw its Search Network advertising revenue increase by approximately 13.5% and before that, advertising revenue from Google and Microsoft increased by 22% eachand the quarter before that they were both up about 32% each.

So both are slowing down with ad revenue growth, but Google is growing much slower in the last quarter.

Since the publication of the results of Alphabet/Googel:

Sundar Pichai, CEO of Alphabet and Google, said, “We are refining our focus on a clear set of products and business priorities. The product announcements we’ve made in the last month alone have made this very clear, including significant improvements to both search and the cloud, powered by AI, and new ways to monetize YouTube Shorts . We focus on both long-term responsible investing and being responsive to the economic environment.

Ruth Porat, Chief Financial Officer of Alphabet and Google, said: “Our third-quarter revenue was $69.1 billion, up 6% from a year ago or up 11% at constant exchange rate. Third quarter financial results reflect healthy fundamental growth in search and momentum in the cloud, albeit impacted by currency exchange rates. We are working to realign resources to fuel our highest growth priorities. »

Of Microsoft:

“In a world facing increasing headwinds, digital technology is the ultimate tailwind,” said Satya Nadella, president and CEO of Microsoft. “In this environment, we are focused on helping our clients do more with less, while investing in secular growth areas and managing our cost structure in a disciplined manner.”

“Microsoft Cloud revenue was $25.7 billion this quarter, up 24% (up 31% in constant currency) year-over-year. We continue to see healthy demand in our business operations, including another quarter of strong bookings, as we deliver compelling value to customers,” said Amy Hood, executive vice president and chief financial officer of Microsoft.

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