Alphabet beat Q2 earnings estimates with revenue growth, driven by Google Services and Cloud

From Nasdaq: 2024-07-24 12:59:00

Alphabet’s Q2 2024 earnings of $1.89 per share exceeded expectations by 2.2%, growing 31.3% YoY. Revenues of $84.74 billion increased 14% YoY. Net revenues, excluding TAC, were $71.35 billion, up 15% YoY. Rising Google Cloud and ad revenues fueled growth. However, Google Network ads faced challenges. Investments in AI and Search show promise for the future.

Alphabet reports revenues from Google Services, Google Cloud, and Other Bets. Google Services revenue rose 11.5% to $73.93 billion, driven by strong search and YouTube ad revenues. Google Cloud revenue increased by 28.8% to $10.35 billion. Other Bets revenue was $365 million, up 28.1% YoY. EMEA generated $24.7 billion, APAC $13.8 billion, Other Americas $4.94 billion, and U.S. $41.2 billion.

Costs and operating expenses rose to $57.32 billion. The operating margin was 32%. Google Services’ margin was 40.1%, Google Cloud’s was 11.3%, and Other Bets reported a loss of $1.13 billion. Cash, cash equivalents, and marketable securities were $100.7 billion. Long-term debt was $13.24 billion. Alphabet generated $26.6 billion of cash from operations.

Alphabet’s stock has gained 30.3% YTD, outperforming the Zacks Internet-Services industry. The company is investing in AI and cloud services for future growth. Google Services showed strong revenue growth, driven by search and YouTube ads. Google Cloud revenue increased significantly. Other Bets revenue increased year over year. Operating margin also expanded.



Read more at Nasdaq: Alphabet (GOOGL) Q2 Earnings Beat Estimates, Revenues Rise Y/Y