Alphabet Reported a Strong YoY Revenue Growth in Q2

Alphabet recorded a 14% year-on-year rise in revenue in the second quarter of 2024. The growth was driven in large part by strong results across search and Google Cloud.

The company reported revenue of $84.7 billion, with net income up from $18.3 billion to $23.6 billion. Google Cloud posted revenue of $10.3 billion compared with $8 billion in 2Q23, due in part to strong demand for AI infrastructure.  Outgoing Alphabet and Google CFO Ruth Porat stated on its earnings call that it is the first time Google Cloud has exceeded $10 billion in quarterly revenue and $1 billion in operating profit.

Alphabet and Google CEO Sundar Pichai said in the year-to-date their AI infrastructure and generative AI solutions for cloud customers have already generated billions in revenues and are used by more than 2 million developers. Pichai said the company is uniquely well-positioned for the AI opportunity ahead.

Search advertising revenue rose from $42.6 billion to $48.5 billion. YouTube reported $8.6 billion in revenue compared with $7.6 billion. Other bets brought in $365 million in revenue while posting an operating loss of $1.13 billion.

After close to nine years as CFO, it was the 56th and last earnings call for Porat as she transitioned to a new role as president and chief investment officer. Anat Ashkenaz takes over as CFO on 31 July, joining from the pharmaceutical company Eli Lilly.