C. Scott Brown / Android Authority
TL;DR
- Alphabet reported third-quarter 2024 revenue of $88.27 billion, up from $76.67 billion in 2023.
- Growth in search, cloud, and YouTube all drove year-over-year increases.
Google could face an eye-watering fine from a Russian court, which it probably won’t pay, but its parent company Alphabet has a lot of cash at the moment. That’s for sure. Today, the company announced very positive Q3 2024 financial numbers and shares how strong its performance is.
Overall, revenue increased 15% year-over-year from 2023 to $88.27 billion. Alphabet shared that YouTube ad revenue alone increased by nearly $1 billion to $8.92 billion. CEO Sundar Pichai said YouTube has generated more than $50 billion in revenue over the past year, setting new records for himself in the process.
Google accounts for subscriptions, platforms, and devices (including Pixel phones) together, so it’s difficult to get hard numbers on them from reports like this. However, we do know that the group has grown by $2.31 billion from 2023 to $10.66 billion this quarter. Regarding the new Pixel 9 devices, Pichai noted that the company is seeing “strong demand for these devices.”
Nick Fernandes / Android Authority
Pixel 9 official case
Cloud services continue to be a huge revenue source and are growing rapidly, up 35% year over year. But it still fell short of the power of search, pulling in $49.39 billion compared to the cloud’s $11.35 billion.
Waymo is drawing attention for the first round of its “Other Bets” project, which brought in a total of $388 million. And on the Android side, Picahi also has a soft spot for both Circle to Search and Google Lens. Apparently Circle to Search is so popular that a third of people who try it continue to use it at least weekly.
Perhaps the biggest question for many is how well the company’s heavy investments in AI in general are paying off. This is a bit difficult to quantify, but Alphabet’s report doesn’t even attempt to do so. Because it’s a pervasive component of almost everything we’re working on today. But even without hard numbers, Alphabet has said it believes its current success is the result of investments in technology such as AI. Specifically, the company points out that AI actually helps streamline certain approaches, such as coding. Would you say that currently 25% of Google code is initially generated by AI (and then reviewed by engineers, of course)?
If Q4 turns out to be similar to Q3, Google will have a very successful 2024.
