Ruth Porat: So overall, as we’ve indicated, we remain very excited about all that we’re doing in Search, the utility for all of us. And so that’s why you’ve heard so many comments about the application of AI and what that means for the ongoing opportunity. You had a number of different questions in there. I think one was on volumes. In the 10-K that we’ll be filing shortly, you’ll see that for the full year 2022, CPCs were down 1% versus last year. And as we’ve talked about in prior quarters, the change in CPCs can reflect a number of different factors; geographic mix, property mix, all sorts of things. Clicks were up 10% in 2022, reflecting a number of factors, including increased engagement, primarily on mobile devices and improvements in ad formats.
But I think overall, we’re really excited about what we see ahead. We’re not going to predict the global environment. We did say the challenging backdrop is ongoing, and you can see that but we’re very focused on what we can control. And I think most important and what we’re really excited about here is innovation to help advertisers overall and our cost reengineering that really gets us to align this long-term sustainable value creation.
Justin Post: Thank you.
Operator: Our next question is from Ross Sandler with Barclays. Your line is open.
Ross Sandler: Yeah. Just a question on the hardware business. Pixel’s doing quite well, but it seems like there have been issues around other areas with this inventory write-down. So could maybe you guys just talk about, in your mind, the strategic importance of having the wide range of hardware products that you have in that segment as it relates to your overall AI initiatives? Thanks a lot.
Sundar Pichai: Thanks, Ross. First of all, very, very pleased with how Pixel has performed through a challenging macro environment. Look, I think our computing portfolio is incredibly important. It’s what allows us to — for us to invest and drive innovation forward. You have to put it all together as a product and ship it. And I think it ends up playing a very, very big role in guiding the ecosystem as well. And increasingly, I think users are thinking beyond phones and thinking through a holistic ecosystem. To give one example, us undertaking Pixel Watch and, as part of that, integrating Fitbit and bringing it to our ecosystem as well, partnering closely with Samsung on wearables. The combination is what has driven over a 300% increase in actives on Android watches ecosystem.
So, just to give you a context on that. So, we are very thoughtful about how we are approaching this area. And as Ruth mentioned, across all these areas, too, we are working to drive greater focus and cost efficiencies in the portfolio. Obviously, we work through a challenging supply chain environment as well as a challenging environment on the demand side. And so we’ll continue focusing on improving all of this in a durable way.
Operator: Our next question comes from Mark Mahaney with Evercore ISI. Your line is open.
Mark Mahaney: Hey I’ll just ask one question on, Ruth, you mentioned a couple of times, getting Google Cloud to profitability. And just talk through how that gets done. You had almost 40% growth in Google Cloud. The operating loss level stayed about the same from 2021 to 2022, so the growth is there. What are the factors that need to be solved in order to get pretty nice profitability out of that segment sort of anywhere akin to what Azure and AWS have been able to show over the years? Thank you.
