Q1 2024 Revenue: $80.5 billion, up 15% year-over-year.
Search Revenue: $46.2 billion, a 14% increase from the previous year.
YouTube Advertising Revenue: $8.1 billion, up 21% year-over-year.
Google Cloud Revenue: $9.6 billion, a growth of 28% from the last year.
Operating Income: $25.5 billion, showing a 46% increase on a reported basis; on an adjusted basis, the operating income is up by 31%.
Operating Margin: Reported at 32%; on an adjusted basis, it is 33%.
Net Income: $23.7 billion.
Earnings Per Share (EPS): $1.89.
Free Cash Flow: $16.8 billion for the quarter; $69.1 billion for the trailing 12 months.
TAC (Traffic Acquisition Costs): $12.9 billion, a 10% increase.
Future Guidance
Revenue Growth: Continued optimism with strong performance in Search, YouTube, and Cloud expected to drive future growth.
Investments and CapEx: Projected increases in capital expenditures to support further growth in Cloud and advancements in AI technologies.
Expense Management: Ongoing efforts to durably reengineer the cost base, with a focus on improving operating margin through cost control and efficiency gains.
AI and Innovation Investments: Significant investments in generative AI, infrastructure, and other technologies that drive innovation across Alphabet’s businesses.
Trends, Market Conditions, Sentiment
AI Leadership and Innovation: Alphabet emphasizes its position at the forefront of AI innovation, with advancements in generative AI, infrastructure, and model efficiency.
Search Engine Growth: Continuation of its dominant position in search with new generative AI features enhancing user satisfaction and usage.
YouTube’s Strong Performance: Growth in advertising and subscription revenue, highlighting the platform’s relevance and engagement.
Google Cloud Expansion: Robust growth in revenue, highlighting increasing demand for cloud services and Google’s competitiveness in the cloud market.
Efficiency and Cost Management: Alphabet is focused on cost efficiency and improved operating margins through strategic restructuring and investments in technology efficiencies.
Market Sentiment: Positive outlook supported by strong revenue growth across key business segments, strategic investments in AI and Cloud, and effective cost management strategies.
Notable Quotes
Sundar Pichai: “It was a great quarter led by strong performance from Search, YouTube, and Cloud.”
Philipp Schindler: “AI innovation across our Ads ecosystem is core to every aspect of our product portfolio.”
Ruth Porat: “We are very pleased with our financial results for the first quarter […] driven, in particular, by strength in Search and Cloud.”
Sundar Pichai on AI: “Now let’s look at how well we are positioned for the next wave of AI innovation and the opportunity ahead.”
Ruth Porat on Financials: “Our operating income was $25.5 billion, up 46% on a reported basis, and our operating margin was 32%.”