YouTube Slowdown Hurts Alphabet Q1 Results; Earnings And Revenue Miss Send Shares Tumbling After Hours
deadline.comShares in Google and YouTube parent Alphabet slipped 5% in after-hours trading after the tech giant reported first quarter results below Wall Street expectations.Video subsidiary YouTube, which has been on a tear in recent quarters, posted slower growth in the period.
Ad revenue on the platform increased 14% to $6.87 billion. Comparisons suffered from strong direct-response advertising in the year-ago quarter, executives said.CFO Ruth Porat, speaking to analysts on a conference call to discuss the results, said Russia’s invasion in Ukraine had an “outsized impact” on YouTube ads.
Alphabet paused overall operations in Russia, as did a host of other U.S. companies, and many advertisers pulled back on YouTube ad spending, especially European companies.
Asked about lingering impact in the quarter, she said it was “too early to comment” as hostilities have continued.Revenue rose 23% to a bit more than $68 billion.
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