Alphabet Beats Q2 Revenue and Profit Estimates, Driven by Ad Sales and Cloud Services

July 24, 2024 at 8:16:36 AM - Trending πŸ”₯

TL;DR Alphabet beat second-quarter revenue and profit estimates, driven by digital ad sales and cloud computing demand. Ad sales rose 11% to $64.6 billion, cloud revenue increased 28.8% to $10.35 billion, and net income grew 28.6% to $23.6 billion. Despite high capital expenditures, results highlight strong demand for digital ads and AI. Total revenue grew 14% to $84.74 billion, with YouTube ad sales up 13%. Alphabet plans significant investments in AI.

Alphabet Beats Q2 Revenue and Profit Estimates, Driven by Ad Sales and Cloud Services

Alphabet, Google's parent company, exceeded second-quarter revenue and profit expectations, driven by increased digital advertising sales and strong demand for cloud computing services. Despite this success, the company indicated that capital expenses would remain high throughout the year.

Financial Highlights for Alphabet Q2 FY24

  • Advertising Sales: Increased by 11% to $64.6 billion, largely due to events like the Paris Olympics and various elections.
  • Net Income: Rose 28.6% to $23.6 billion, surpassing the average estimate of $22.9 billion.
  • Total Revenue: Grew 14% to $84.74 billion, exceeding analysts' consensus estimate of $84.19 billion.
  • YouTube Ad Sales: Rose 13% to $8.67 billion.
  • Cloud Computing Revenue: Increased by 28.8% to $10.35 billion, beating the expected $10.16 billion.

Initially, Alphabet's shares rose by about 2% but later dipped by a similar percentage. The shares had already gained more than 30% this year, outperforming the Nasdaq Composite Index's 20% rise.

Capital Expenditures

  • Reported at $13 billion for the June quarter.
  • Expected to be at or above $12 billion for the rest of 2024.

AI and Technology

Strong adoption of generative artificial intelligence technology boosted the cloud business. Despite some embarrassing AI search results, Alphabet plans to expand AI use cases and potentially drive revenue through AI products.

Acquisitions and Regulatory Scrutiny

  • Alphabet had been pursuing a $23 billion acquisition of cybersecurity firm Wiz, which was eventually called off.
  • Talks to acquire HubSpot also fell through, which would have positioned Alphabet against competitors like Salesforce and Oracle.
  • Google decided to retain third-party cookies in its Chrome browser, reversing its previous stance due to advertiser concerns.

Other Ventures

Revenue from "other bets," including Waymo, rose 28% to $365 million. A multi-year $5 billion investment in Waymo is planned, as rival Cruise recovers from a publicized accident.

Conclusion

Alphabet's strong performance in digital advertising and cloud computing underscores robust market demand, despite high capital expenditures and mixed investor reactions. The company continues to focus on AI advancements and strategic investments in other ventures.

Q&A

Have more questions on this topic? Ask our AI assistant for in-depth insights.

The Only Digital Marketing Feed You'll Ever Need.

Stay informed your way. Tailored updates when and how you want them. 100% Free.

10,000+ Users

500+ Sources

1000+ Tools

Or

Related Posts

Top-Notch Google Analytics Audit Tool

Top-Notch Google Analytics Audit Tool

Sponsored
GA4 Auditor
GA4 Auditor

Verified Sponsor

Verified Sponsor

GA4 Auditor is a Verified Sponsor. Want to get featured here? Contact us.

Verified Sponsor
Google Updates robots.txt Guidelines Clarifying Supported Fields and Format

Google Updates robots.txt Guidelines Clarifying Supported Fields and Format

Google Search Central
Google Search Central

Official Source

Official Source

Google Search Central is a Official Source. The source has been verified by Swipe Insight team.

Official Source
What AI in Search Means for Advertisers' Future

What AI in Search Means for Advertisers' Future

Think with Google
Think with Google

Official Source

Official Source

Think with Google is a Official Source. The source has been verified by Swipe Insight team.

Official Source
Google Search Adds Certification Support for Product Structured Data

Google Search Adds Certification Support for Product Structured Data

Google for Developers
Google for Developers

Official Source

Official Source

Google for Developers is a Official Source. The source has been verified by Swipe Insight team.

Official Source
Google Lens Introduces New Shopping Features

Google Lens Introduces New Shopping Features

Google
Google

Official Source

Official Source

Google is a Official Source. The source has been verified by Swipe Insight team.

Official Source
Google Retires 'noarchive' Robots Meta Tag Rule

Google Retires 'noarchive' Robots Meta Tag Rule

Google for Developers
Google for Developers

Official Source

Official Source

Google for Developers is a Official Source. The source has been verified by Swipe Insight team.

Official Source
Google Updates Guidelines for Product Markup in Search Results

Google Updates Guidelines for Product Markup in Search Results

Google for Developers
Google for Developers

Official Source

Official Source

Google for Developers is a Official Source. The source has been verified by Swipe Insight team.

Official Source
Microsoft Expands Bing with AI-Powered Generative Search for Complex Queries

Microsoft Expands Bing with AI-Powered Generative Search for Complex Queries

Microsoft
Microsoft

Official Source

Official Source

Microsoft is a Official Source. The source has been verified by Swipe Insight team.

Official Source

Related Tools

GA4 Auditor logo

GA4 Auditor

Verified Tool

Verified Tool

GA4 Auditor is a Verified Tool. Want to get this badge? Contact us.

Verified Tool

Automated GA4 audits with actionable insights

Get Featured Here

Showcase your tool in this list.

Contact Us
Surfer SEO logo

Surfer SEO

SEO content creation and optimization made easy

SEO
Sitebulb logo

Sitebulb

Efficient website crawler for better SEO audits

SEO
Screpy logo

Screpy

AI-Powered SEO and Web Analysis Simplified

SEO
Blogify logo

Blogify

Convert multimedia to SEO-optimized blogs fast

SEO
Answer the Public logo

Answer the Public

Unlock Consumer Insights for Content Creation

SEO
Ahrefs logo

Ahrefs

SEO tools to boost traffic and rank higher

SEO
SEO Writing AI logo

SEO Writing AI

AI-powered SEO content in 1 click

SEO
SEO Stuff logo

SEO Stuff

Affordable SEO tools without monthly fees

SEO
Screaming Frog logo

Screaming Frog

Comprehensive SEO audits with real-time crawling

SEO

Get Featured Here

Showcase your tool in this list.

Contact Us