Alphabet, the parent company of Google, shattered expectations in the first quarter of 2024, leading to a surge in stock prices. Key revenue drivers such as Google Search, YouTube, Google Cloud, and cutting-edge AI technologies like Gemini demonstrated robust performance. This success story follows a challenging 2023 marked by significant workforce reductions.
Alphabet's Quarterly Earnings Updates
Every quarter, Alphabet, Google's umbrella organization, discloses its financial results. Sundar Pichai, the CEO of both Google and Alphabet, actively participates in earnings calls to provide insights and address queries from stakeholders.
Alphabet's Q1 Earnings in 2024
In April 2024, Alphabet's financial report exceeded analyst predictions, propelling stock prices to new heights. The company achieved a remarkable 15% increase in revenue compared to the previous year, generating $80.5 billion in revenues. Additionally, Alphabet declared its inaugural dividend of $0.20 per share.
During the earnings call, Pichai highlighted the exceptional performances of Google Search, YouTube, and Google Cloud. He emphasized Alphabet's advancements in artificial intelligence, signaling the onset of the 'Gemini era' with the introduction of Google's Gemini AI chatbot.
Alphabet's Q4 Earnings in 2023
Alphabet surpassed expectations in the fourth quarter of 2023, although Google's advertising sales slightly missed projections, leading to a temporary decline in share value. The company's revenue surged to $86.3 billion, up by 13%, accompanied by a net income of $20.28 billion and earnings of $1.64 per diluted share.
Pichai noted the launch of the innovative AI model Gemini during the earnings call, expressing optimism for the future.
Alphabet's Q3 Earnings in 2023
Alphabet outperformed analysts' forecasts in the third quarter of 2023, exceeding revenue and profit expectations. However, Google's Cloud division fell short of Wall Street's projections, resulting in a 10% drop in the company's stock value.
Despite this setback, Google Cloud's revenue rose by 22% to $8.4 billion, albeit lower than the previous quarter. Pichai highlighted Alphabet's continuous expansion and deployment of new AI services, emphasizing confidence in future prospects.
Alphabet's Financial Journey
Alphabet, comprising Google and various ventures under 'Other Bets,' navigated a dynamic 2023 characterized by groundbreaking AI innovations and an annual revenue of $307.39 billion. Despite these achievements, the company downsized approximately 6% of its workforce.
Aligned with industry trends post-pandemic, Alphabet focused on cost reduction initiatives and downsizing efforts, resulting in 12,000 job cuts in 2023. By the end of the year, the company's total headcount stood at around 182,500 employees.
Looking ahead, Pichai anticipates further layoffs in 2024, emphasizing a meticulous and thoughtful approach to the restructuring process. Notably, Alphabet's market capitalization reached $2 trillion in spring 2024, solidifying Google's position as the world's fourth most valuable public company.
While Google remains the primary revenue generator for Alphabet since its inception in 2015, 'Other Bets' entities like Waymo, Verily, Capital G, and Google X contribute revenue primarily from healthcare services, offset by substantial operating losses. In Q1 2024, 'Other Bets' reported revenues of $495 million but recorded an operating loss of $1 billion.
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By: mmark@businessinsider.com (Michelle Mark)
Title: Google Earnings: A Deep Dive into Alphabet’s Financial Performance and Revenue
Sourced From: www.businessinsider.com/google-earnings-alphabet
Published Date: Sat, 11 May 2024 08:48:02 +0000
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