Alphabet Inc., Google’s parent company, reported impressive financial growth for the third quarter, ending September 30, 2024, with revenue climbing 15% year-over-year to reach $88.3 billion.
The PUNCH reported that these results released on Tuesday, highlighted the significant contributions of Google Services, which saw a 13% boost, bringing in $76.5 billion.
Google attributed this growth to robust performance across its primary services, including Google Search, YouTube advertising, subscription services, platforms, and devices.
Google Cloud also delivered remarkable results, with revenue surging 35% to $11.4 billion, driven by heightened demand for AI-focused offerings.
Notably, the increase was supported by Google Cloud Platform’s advancements in AI infrastructure and generative AI capabilities, which are gaining traction among enterprise clients looking to bolster their technological frameworks.
Alphabet’s total operating income saw a notable 34% rise, while its operating margin expanded by 4.5 percentage points, reaching 32%.
This strong performance carried over to net income, which also rose 34%, leading to an earnings per share (EPS) of $2.12—a substantial 37% jump from the prior year’s third quarter.
The CEO of Alphabet, Sundar Pichai, commented on the momentum, “The momentum across the company is extraordinary. Our commitment to innovation, as well as our long-term focus and investment in AI, are paying off, with consumers and partners benefiting from our AI tools.”
Pichai emphasized the impact of AI across the company’s core services. “In Search, our new AI features are expanding what people can search for and how they search for it. In Cloud, our AI solutions are helping drive deeper product adoption with existing customers, attract new customers, and win larger deals. And YouTube’s total ads and subscription revenues surpassed $50 billion over the past four quarters for the first time,” he said.
Additionally, Pichai noted the ongoing improvements to Alphabet’s operational efficiency, which have contributed to stronger profit margins.
“We generated strong revenue growth in the quarter, and our ongoing efforts to improve efficiency helped deliver improved margins. I’m looking forward to driving more advances for consumers, customers, and creators globally,” he added.
With these results, Alphabet demonstrates how its continued focus on artificial intelligence and technology innovation not only strengthens its core services but also positions the company to meet the growing demands of consumers, businesses, and content creators worldwide.
