It has been a difficult first quarter, but Google still managed $41.2 billion in revenue and $6.8 billion in profit in Q1 2020, up 1.5% YoY.
Of course, 1.5% YoY growth is far from usual for a tech company, and Google reports that the last month of the quarter, March, was pretty difficult, saying:
“Performance was strong during the first two months of the quarter, but then in March, we experienced a significant slowdown in ad revenues. We are sharpening our focus on executing more efficiently, while continuing to invest in our long-term opportunities.”
With all of us stuck at home Google’s usage actually increased, but people were preoccupied COVID-19 rather than travel and shopping.
Bright points were YouTube, which saw revue up 33% to $4 billion, and Google Cloud, which was up 55% to 2.8 billion revenue. Google also said Google Meet, their Zoom competitor, was growing at 3 million new users a day, up from 2 million a day the previous month.
Googe’s Other Bets continued to be a money hole, losing $1.1 billion in the last quarter.
Google expects Q2 to be much worse than Q1, but is hoping to compensate by reducing hiring and marketing spend, and creating more B2B opportunities such as making it easier for small businesses to use Google Shopping to sell online.
Via the Verge