Google parent Alphabet posted weaker-than-expected second-quarter earnings Tuesday as the search giant experienced a choppy economy that has already weighed on advertising revenue at Snap and Twitter.
In the quarter ended June 30, Alphabet reported revenue of $69.7 billion, missing the $70 billion forecast by analysts surveyed by Yahoo Finance. The company reported $1.21 in earnings per share, missing the $1.31 forecast.
The weak results come as advertising, the company’s revenue driver, faces headwinds from a slowing economy. Google’s advertising business didn’t seem to suffer as badly as smaller internet companies but still faces a difficult environment. The tech giant’s advertising revenue grew almost 12% year over year to $56.3 billion.
Google Cloud revenue increased about 36% year over year to $6.3 billion. But the division is still unprofitable with losses widening a little bit more than 45% to $858 million.
The company also battled a surging dollar, which eats into the value of revenue from overseas markets. Alphabet said the strong dollar trimmed 3.7% from year-over-year revenue growth.
The company’s staff grew to 174,000 employees, up from 144,000 a year prior. Google CEO Sundar Pichai has said the company is going to slow hiring.
This is a developing story.