Google parent Alphabet’s profit slips again after CEO warns of ‘economic headwinds’

Illustration by Alex Castro / The Verge

Even though it brings in more money, profits are down at the parent company. The company reported in its earnings report this afternoon that its second quarter profit was down from a year ago.

The company brought in more revenue than it did in the second quarter of the year due to rising expenses. Its revenues were up from last year. Spending on both research and development and sales and marketing is $3 billion more than this time in 2020.

The breakdown is exactly the same as last year. Almost 40.7 billion dollars have been brought in by ads related to the search engine. Even though it made $6.2 billion in revenue, the Cloud business still lost money. Around $7.3 billion was made by advertising on the site. Variety reports that the growth of the video platform over the last two years is the lowest it has been. Revenue was up for all of the company's segments in the second quarter.

In the past month, employees have been warned that times may be getting harder. The company would need to be more entrepreneurial, working with greater urgency, sharper focus, and more hunger than we have shown on sunnier days, according to a memo sent by the company's CEO. The company told employees that it was pausing hiring for two weeks and would use the time to look at its workforce.

The earnings give some context for the moves that were made. The number ballooned to 174,014 in the second half of the 20th century.