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# Alphabet Growth Slows Again in Q1 2023 Amid Slowdown in Ad Spending
- URL: https://www.techloy.com/alphabet-growth-slows-again-in-q1-2023/
- Published: 2023-04-27T10:08:16.000Z
- Updated: 2024-05-13T10:57:48.000Z
- Author: Emmanuel Oyedeji
- Tags: Business, Google, / Insights

Alphabet, Google's parent has reported slowing revenue and profit growth again in its released financial earnings report for the first quarter of 2023.

While revenue rose to $69.8 billion, a 3% YoY increase from last year’s $68 billion, it was a QoQ slowdown from $76.05 billion in Q4 2022\. Net income also stood at $15.1 billion, a 6% decline compared with $16.05 billion a year ago.

As seen in the *Techloy* chart below, Alphabet's revenue has continued on a downward trend from 2021 as the software giant suffered an advertising pullback from the soaring growth it witnessed during the coronavirus pandemic.

![](https://storage.ghost.io/c/c1/a6/c1a6d111-d951-41ad-a392-c1e841210b93/content/images/2023/04/Alphabet-s-Quarterly-Revenue--Q1-2019---Q1-2023--1.jpeg)

The subpar performance in the quarter was primarily due to slowing YouTube's ad sales revenue, which declined by 3% YoY to $6.7 billion, marking its third straight quarterly decline.

Furthermore, Alphabet's search revenue saw only a modest increase of 1.87% YoY in Q1 2023, significantly lower than the previous years' growth rates of 24.28% and 30.11% in Q1 2022 and Q1 2021, respectively, as it faces intense competition from various rivals, including Microsoft’s AI-powered Bing chatbot and OpenAI’s ChatGPT.

However, on a brighter note, Alphabet's Cloud reported positive earnings. The division posted quarterly profits of $191 million, marking a notable achievement for the company.