Alphabet/Google Revenues Jumped 14 Percent in Q2

Google’s parent company Alphabet reported it earned a net income of $23.6 billion on revenues of $87.4 billion in the quarter ending June 30, 2024. Those figures represent year-over-year gains of 22.2 percent and 14 percent, respectively.

“Our strong performance this quarter highlights ongoing strength in Search and momentum in Cloud,” Alphabet and Google CEO Sundar Pichai said. “We are innovating at every layer of the AI stack. Our longstanding infrastructure leadership and in-house research teams position us well as technology evolves and as we pursue the many opportunities ahead.”

Total Google Services delivered $73.9 billion in revenues, with advertising accounting for $64.6 billion of that figure. Both were up dramatically from the year-ago quarter—11.5 percent and 10 percent respectively—and advertising accounted for about 74 percent of Alphabet’s total revenues. Google Search was the biggest chunk of that at $48.5 billion, but YouTube ads added $8.67 billion in revenues, while Google Network landed at $7.4 billion.

Google subscriptions, platforms, and devices (previously, “Google other”) added another $9.3 billion in revenues, up 12.6 percent YOY, accounting for the remainder of the Google Services business.

Google Cloud revenues exceeded $10 billion for the first time, with the business growing 22.4 percent in the quarter to $10.3 billion. Alphabet president and CIO Ruth Porat noted that Google Cloud also delivered $1 billion in operating profit, a dramatic increase from the $395 million in operating profit in the year-ago quarter.

Alphabet now reports its consolidated AI efforts outside of Google Services, via a new business called Alphabet-level activities. This business lost $2.3 billion, compared to an estimated $1.2 billion one year ago, as the company ramps up its AI model building across Google Research and Google DeepMind to better compete with OpenAI, Microsoft, and other AI infrastructure firms.