Alphabet, Google’s parent company, has reported its third quarter performance for the year 2024, showing a total revenue of $88.268 billion, a 15% increase compared to the same quarter in the previous year. The company achieved a net income of $26.301 billion.
The total revenue of Google Services, the main business group, increased by 13% to $76.510 billion. This growth stemmed from various segments including advertising on search, advertising on YouTube, subscriptions, and hardware. Meanwhile, Google Cloud business experienced significant growth with revenue reaching $11.353 billion, a 35% increase driven by the demand for Google Cloud Platform for AI, resulting in a profit of $1.947 billion.
Sundar Pichai, the CEO, expressed the company’s exciting direction towards AI. In search, AI features have enhanced search capabilities and transformed the searching process. In the cloud, AI solutions have empowered customers to achieve more, leading to increased contracts with new customers. YouTube also saw a remarkable increase in revenue exceeding $50 billion from advertising and subscriptions in a single quarter, a first for the platform.
Additional interesting data from the earnings report include:
– More than 25% of Google’s code is generated by Generative AI, validated by engineers to improve efficiency.
– Google Maps has surpassed 2 billion users.
– Adoption of Gemini API has surged 16-fold in the past six months.
– Circle to Search now supports over 150 million Android devices.
– Searches through Lens exceed 20 billion times per month.
– Waymo’s driverless travel has covered over 1 million miles, with over 150,000 paid passenger trips, a milestone unmatched by any other autonomous vehicle service provider.
Source: Alphabet (PDF) and Google
TLDR: Alphabet, Google’s parent company, showcased impressive revenue growth in the third quarter of 2024, driven by strong performances in Google Services and Google Cloud, along with exciting advancements in AI technology and user engagement across various platforms.
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