In This Article:
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Alphabet Revenue: $350 billion for 2024, up 14% year-over-year.
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Q4 Revenue: $96.5 billion, a 12% increase year-over-year.
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Google Services Revenue: $84.1 billion in Q4, up 10% year-over-year.
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Google Cloud Revenue: $12 billion in Q4, a 30% increase year-over-year.
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YouTube Advertising Revenue: $10.5 billion in Q4, up 14% year-over-year.
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Operating Income: $31 billion in Q4, a 31% increase year-over-year.
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Operating Margin: Increased to 32% in Q4.
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Net Income: $26.5 billion in Q4, a 28% increase year-over-year.
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Earnings Per Share (EPS): $2.15, a 31% increase year-over-year.
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Free Cash Flow: $24.8 billion in Q4 and $72.8 billion for the full year 2024.
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Cash and Marketable Securities: $96 billion at the end of Q4.
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CapEx: $14 billion in Q4, primarily for technical infrastructure.
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Share Repurchases: $15 billion in Q4, totaling nearly $70 billion for 2024.
Release Date: February 04, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Alphabet Inc (NASDAQ:GOOG) reported strong revenue growth, with a 12% increase in Q4 2024, driven by robust performance in Google Search and Cloud.
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The company achieved a significant milestone with its Cloud and YouTube businesses, reaching a combined annual revenue run rate of $110 billion.
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AI advancements, including the launch of Gemini 2.0, have enhanced product capabilities and driven increased consumer and developer engagement.
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Google Cloud saw a 30% revenue increase, with strong demand for AI-powered solutions and strategic deals over $1 billion.
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YouTube continues to lead in streaming watch time in the US, with significant growth in ad revenue, particularly from election-related content.
Negative Points
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Network advertising revenue declined by 4%, impacting overall advertising growth.
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The company faces capacity constraints in its Cloud segment, limiting potential revenue growth despite high demand.
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Foreign exchange rates and the absence of a leap year are expected to negatively impact Q1 2025 revenue.
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Increased capital expenditure, projected at $75 billion for 2025, may pressure profitability due to higher depreciation costs.
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Alphabet Inc (NASDAQ:GOOG) anticipates challenges in maintaining growth in the financial services vertical, particularly in the insurance segment.
Q & A Highlights
Q: Sundar, can you discuss your vision for the evolution of Google's search product with the advancements in AI and agentic possibilities? A: Sundar Pichai, CEO: Our journey with AI Overviews is progressing positively, and we are continuously improving models and expanding query capabilities. We aim to integrate AI in more powerful and multimodal ways, such as with Lens and Circle to Search. The future holds significant opportunities for expanding search use cases, including those requiring more time to answer, and we plan to introduce new experiences throughout 2025.