Alphabet Q3 2024 Earnings Highlights Financial Performance

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Amara

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Jul 18, 2024
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Consolidated Revenue: Up 15% YoY, or 16% in constant currency.
Google Services Revenue: $76.5 billion, a 13% increase.

Google Search & Other Advertising Revenue: $49.4 billion, up 12%.
YouTube Advertising Revenue: $8.9 billion, up 12%.

Google Cloud Revenue: $11.4 billion, a 35% increase.

Operating Income: $28.5 billion, up 34%.
Operating Margin: Increased to 32%.
Net Income: Grew 34% to $26.3 billion.
Earnings Per Share (EPS): Rose 37% to $2.12.

Free Cash Flow: $17.6 billion.
Capital Expenditures (CapEx): $13 billion, focused on technical infrastructure.
Balance Sheet Highlights

Cash & Marketable Securities: $93 billion.
Share Repurchases & Dividends: $15.3 billion in share repurchases, $2.5 billion in dividends.
Segment Highlights

Google Cloud: Operating income of $1.9 billion, with a 17% margin.
Other Bets: Revenue of $388 million, offset by an operating loss of $1.1 billion.

Strategic Initiatives & Positive Highlights

AI advancements with the integration of Gemini models across major products, reaching over 1 billion users.
YouTube's combined ad and subscription revenue surpassed $50 billion over four quarters.

Commitment to sustainability with investments in clean energy, including a corporate purchase of nuclear energy.
Expanded global reach with AI-powered search features now available in over 100 countries.
Challenges

Network Advertising Revenue: Declined by 2%, reflecting challenges in that segment.

Legal Risks: Ongoing DOJ scrutiny may impact partnerships like the one with Apple.

Rising Costs: Total cost of revenue rose by 10%, with operating expenses up by 5%.

Headwinds in Subscriptions: Slowed growth in subscription platforms and device revenue.

AI Competition: Increased competition requires continual innovation in AI to sustain leadership.