Alphabet's Revenue Reached $88 Billion in Q3

Alphabet reported revenue of $88.2 billion in the third quarter of 2024, marking a 15% YoY growth. Google parent stated that good business results were driven by its cloud and search divisions.

Google Cloud revenue increased 35% to $11.3 billion and Google Services 13% to $76.5 billion. Search and additional advertising revenue contributed $49.3 billion, up 12%. Google executives credited the robust results across search and Google Cloud to the company’s generative AI Gemini models and its AI infrastructure.

“AI really supercharges search,” said chief business officer Philipp Schindler on the earnings call. “Our new AI-powered features make searches more helpful, and we continue to see great feedback, particularly from younger users.”

Alphabet and Google CEO Sundar Pichai noted the GenAI-based Circle to its Search function is now available across more than 150 million Android devices. “A third of the people who have tried Circle to Search now use it weekly, a testament to its helpfulness and potential,” he said.

The CEO stated all seven of Google’s products and platforms that each have more than 2 billion monthly users are employing its Gemini models. Pichai stated Google is also using AI internally to improve its coding processes to boost productivity and efficiency. “Today, more than a quarter of all new code at Google is generated by AI, then reviewed and accepted by engineers. This helps our engineers do more and move faster.”

CFO Anat Ashkenazi stated on her first earnings call with Alphabet that net income came in at $26.3 billion compared to $19.6 billion a year ago. YouTube advertising of $8.9 billion marked a 12% increase from $7.9 billion while network advertising revenue of $7.5 billion declined by 2%. Other bets brought in $388 million in revenue while posting an operating loss of $1.1 billion.