Google Cloud was defiantly the highlight of $GOOG
2023 Q1 earnings, largely because it derived its first profitable quarter.
- Revenues were $7.5 billion for the quarter, up 28%.
- Operating income of $191 million, operating margin was 2.6%
CEO, Sundar Pichai mentioned in the last 3 years GCP’s annual deal volume has grown nearly 500%, with large deals over $250 million growing more than 300%. There is defiantly a lot of demand for Google’s Cloud, nearly 60% of the worlds largest 1,000 companies are Google Clouds customers.
I’m interested to see if the profitability of Google’s Cloud business will continue from here. I feel like it could be a little wobbly for the next few quarters, being the first quarter of profitability, with a little help from accounting changes.