Alphabet, Google's parent, posted weaker than expected revenue growth for the December quarter, with returns from advertising in a slide.
The market leader last month joined the global tech lay off, cutting 12,000 jobs in reponse to deteriorating economic conditions and a slowing of growth in digital advertising.
The December quarter underlined a weaker digital advertising market and Google's cost cutting response.
Overall revenue was up just 1% in the three months to $76 billion.
The giant media platform closed the full 12 months to December with revenue up just 10% to $282 8 billion.
Revenue fell in the December quarter for both Google Network and YouTube.
YouTube was $7.96 billion in the quarter compared to $8.63 billion in the same three months the year before. Network advertising was $59 billion compared to $61.24 billion.
March quarter numbers will be dragged down with employee severance and related charges of $1.9 billion to $2.3 billion.
CEO Sundar Pichai: “Our long-term investments in deep computer science make us extremely well-positioned as AI reaches an inflection point, and I’m excited by the AI-driven leaps we’re about to unveil in Search and beyond.
"There’s also great momentum in Cloud, YouTube subscriptions, and our Pixel devices.
"We’re on an important journey to re-engineer our cost structure in a durable way and to build financially sustainable, vibrant, growing businesses across Alphabet.”
Ruth Porat, CFO of Alphabet and Google, said: “We have significant work underway to improve all aspects of our cost structure, in support of our investments in our highest growth priorities to deliver long-term, profitable growth.”
The numbers:
Have something to say on this? Share your views in the comments section below. Or if you have a news story or tip-off, drop us a line at adnews@yaffa.com.au
Sign up to the AdNews newsletter, like us on Facebook or follow us on Twitter for breaking stories and campaigns throughout the day.