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jonas21 | on: Google Search is now less than half of Alphabet’s revenue
I get what they're trying to say, but it still seems a bit unconventional to have a line chart where the y-axis is a share percentage.

Here's a graph with revenue in dollars by segment:

https://www.pasteboard.co/DwvXdQj2LXpk.png

hinkley | parent | next
This graph invites some pertinent questions. For instance, it suggests that their search revenue growth went linear sometime in 2020 and might be going asymptotic as of the last year. So I want to know what happens there over the next several quarters. Is the current quarter anomalous, or do deferred payments always make it look like that?

Second, is the geometric growth of Cloud cannibalizing their search teams, leading to less effort being put into sales. And so it’s not so much that demand is tapering off as that supply is being constrained as an opportunity cost. That $1m in salary nets more profit from Cloud than from Search.

FloorEgg | root | parent | next
As a power user of Google search for decades, I find myself using it less and less (maybe now 5% of my historical peak usage). There are several reasons, but the main one is because they have gradually traded search quality for ad revenue with the direct consequence being wasting my time.

If I type in the name of a company so that I can navigate to their website, and I have to scroll past my whole viewport of other companies bidding to be placed above where I'm trying to go, I learn it's faster for me to just type the website address into the bar instead of going via Google.

They designed a UX that made my life easier and caused me to form a habit, and then broke that UX for money causing me to form a new habit.

It's just one example of dozens, but the consequence is that I see 95% fewer Google ads than I used to. My guess I am on the leading edge (along with many others on this forum) of a wave of change of user behavior that spells pessimism for Google search revenue.

hinkley | root | parent
It is unfortunate and only sometimes sustainable to alienate a third of your user base to extract 2x as much money from the rest for a net 30% increase in short term revenue. It’s not repeatable usually.
gniv | root | parent | next
> Is the current quarter anomalous,

Yes, to an extent. There were three unfavorable circumstances other than AI eating into search: FX (major), the World Cup timing, end of de minimis exemption in EU.

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shermantanktop | root | parent
That’s almost always a delayed effect. Move software people around and the revenue effects aren’t instant. In a heavily R&D-oriented area it might be 2y or more.
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haute_cuisine | parent | next
Thanks for sharing, search revenue is growing strong. It's mind blowing that they earn ~180m per day from people searching internet.
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andrewguy9 | parent | next
Thank you for showing the actually useful chart.
dogscatstrees | parent | next
Here's a dual-axis graph, revenue $ left axis, % share of revenue right axis.

https://www.pasteboard.co/yCGoS8kxEy7Y.png

Google Cloud clearly on positive acceleration for revenue share.

usefulcat | parent | next
Notice how for both "search" and "everything else" there's a peak at almost every year boundary. Trying to juice the EOY numbers, I guess?
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literalAardvark | parent | next
Edit: I misread the graph. It's the actual number.

(Love the cheeky exponential right past the end of data at the end of a straight line.

Forecasting 501: forecasts say the boss is smart)

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alberth | parent | next
Is google cloud revenue curve really that smooth?
AlienRobot | parent | next
Everyone already uses Google, so every quarter the revenue goes up it's definitely not because of a higher market share...

Why does it even need to keep going up anyway? Is 60 billion not enough?

121789 | root | parent
Depends if you invest and want your investment to grow
jsnell | root | parent | next
The growth doesn't need to be from Search. Even with the current level of search growth, Google's total revenue is up 25% year on year, operating income is up 30% year on year.
AlienRobot | root | parent
You are wrong. Search is already profitable. It doesn't need to become more profitable. The profits can simply be used to improve the profitability of other offerings like Google Cloud.
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singingtoday | parent
Thank you for that. Super interesting.

I'm surprised GCP rev is growing so fast. Anecdotally, most devs I know still prefer AWS.

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