Lei Jianping on April 26
Google's parent company, Alphabet (NASDAQ: GOOG, GOOGL), today reported financial results for the year ended March 31, 2024. According to the financial report, Alphabet's revenue in the first quarter of 2024 was $80.539 billion, an increase of 15% from $69.787 billion in the same period last year.
Alphabet's revenue from Google search in the first quarter of 2024 was $46.156 billion, compared to $40.359 billion in the same period last year, $8.09 billion from YouTube advertising, compared to $6.693 billion in the same period last year, and $7.413 billion from Google Network, compared to $7.496 billion in the same period last year.
Alphabet's revenue from Google Cloud in the first quarter of 2024 was $9.574 billion, compared to $7.454 billion in the same period last year.
Alphabet's operating profit for the first quarter of 2024 was $25.472 billion, up 32% from $17.415 billion in the same period last year, and net profit was $23.662 billion, up 57% from $15.05 billion in the same period last year.
In the field of artificial intelligence, it is widely believed that Google is catching up with Microsoft, which has invested in OpenAI, the company behind ChatGPT, and has provoked investor excitement. But Google executives stressed on the earnings call that the company is well-positioned to lead the shift to an AI-centric tech world and is committed to driving investment in the development of new models.
Sundar Pichai, CEO of Alphabet, said: "Our Q1 results reflect strong performance across search, YouTube and cloud. Our leadership in AI research and infrastructure, as well as our global product footprint, positions us well for the next wave of AI. ”
Pichai said the company has a clear path to monetize AI breakthroughs through advertising, cloud, and subscriptions. The company integrates AI tools into Google searches, which allows users to ask more complex and descriptive questions.
Alphabet reported capital expenditures of $12 billion for the quarter, primarily related to servers and data centers. Ruth Porat, the company's chief financial officer, said on the call that similar spending levels will be seen in the coming quarters, reflecting the company's confidence in its AI investments.
As of today's close, Alphabet's stock price is $156, with a market capitalization of $1.9395 trillion, and Alphabet is up nearly 12% premarket to exceed $2 trillion.
Behind Alphabet's surge, on the one hand, the company's revenue and earnings exceeded expectations, and on the other hand, Alphabet announced a cash dividend plan of $0.20 per share, which sparked excitement among investors.
Alphabet's board of directors also approved additional share buybacks of up to $70 billion.
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