Google reports impressive Q3 2024 results, cloud revenue increases 35% to $11.4 billion

Today, Alphabet reported its financial results for the third quarter ending September 30, 2024. The tech giant experienced a notable revenue growth of 15%, reaching $88.3 billion. Google demonstrated robust performance across various sectors, with Google Services revenues climbing 13% to $76.5 billion, propelled by substantial gains in Google Search and other offerings, subscriptions, platforms and devices, as well as YouTube advertisement revenues. Additionally, Google Cloud generated a remarkable 35% revenue increase, totaling $11.4 billion, fueled by significant advancements in Google Cloud Platform (GCP) particularly in AI Infrastructure, Generative AI Solutions, and other core GCP products.

During the earnings announcement, Google highlighted several remarkable statistics regarding its services. For the first time, the total revenue from ads and subscriptions on YouTube surpassed $50 billion over the last four quarters—a remarkable achievement for a company that Google acquired in 2006 for $1.65 billion.

Currently, Google boasts seven products and services, each with over 2 billion monthly active users. This impressive lineup includes Google Search, Play Store, Chrome, Google Maps, Gmail, YouTube, and Android, all of which leverage Gemini models to enhance AI experiences for their users.

Moreover, Google disclosed that AI is being utilized internally to streamline coding tasks. In fact, AI is responsible for generating over 25% of all new code at Google, which is then reviewed and approved by engineers, significantly enhancing productivity and output.

Each month, Google Lens facilitates more than 20 billion visual searches, rapidly becoming one of the fastest-growing query types on Google Search. On the Google Cloud side, there has been an astonishing 14-fold increase in Gemini API calls over just six months, while BigQuery ML operations surged by 80%, and the adoption of Mandiant-powered threat detection has multiplied four times over the last six quarters.

As a final highlight, Waymo has surpassed 1 million fully autonomous miles driven, providing over 150,000 paid rides each week—a remarkable milestone for any autonomous vehicle company.

Sundar Pichai, CEO of Alphabet, commented on the Q3 earnings results:

“The momentum throughout the company is impressive. Our dedication to innovation, alongside our sustained investment in AI, is proving fruitful, benefiting both consumers and partners through our AI tools. In Search, our latest AI features are widening the scope of inquiries people can make and how they utilize it. In the Cloud sector, our AI solutions are facilitating greater product adoption among existing customers and attracting new ones while securing larger contracts. Additionally, YouTube’s total ads and subscription revenue has exceeded $50 billion in the past four quarters, a first for us. The quarter exhibited strong revenue growth and our continuous efficiency enhancements contributed to improved margins. I am enthusiastic about advancing further for consumers, clients, and creators across the globe.”

Clearly, Alphabet’s persistent investment in artificial intelligence is translating into favorable outcomes, positioning the company for continued prosperity in the dynamic technology landscape.

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