Alphabet on Tuesday announced its Q3 2024 earnings with $88.27 billion in revenue. These numbers range from July to September. These earnings from Google's parent company beat analysts' estimates on the top and bottom lines. Cloud businesses continued to expand and revenue is up 15% from $77 billion in Q3 2023.
Here are top obeservations from Alphabet's Q3 earnings report:
Revenue Surge: Alphabet reported $88.27 billion in revenue, exceeding analyst expectations of $86.44 billion.
EPS Beating Projections: Earnings per share (EPS) came in at $2.12, well above the forecasted $1.83.
Ad Revenue Strength: Advertising revenue hit $65.85 billion, up from $59.65 billion in Q3 2023.
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Cloud Expansion: Google Cloud posted $11.35 billion, surpassing the anticipated $10.79 billion.
YouTube Leading Report: The platform’s total ads and subscription revenues surpassed $50 billion over the past four quarters for the first time.
Shares Climb: Alphabet’s stock leaped more than 3% in after-hours trading Tuesday.
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AI Is Paying Off
Search accounted for the largest portion of Google's revenue at just under $50 billion. However, Google Cloud managed a sizeable 35% revenue gain. "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," Alphabet CEO Sundar Pichai said in a statement.
"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," he added.