Alphabet Q1 FY24 Reports 15% Revenue Increase; YouTube Ads Surge by 21%

Alphabet's Q1 FY24 earnings included several key highlights:

• Revenue: Increased by 15% year-over-year to $80.5 billion, which was a $1.8 billion beat.
• Operating Margin: Grew to 32%, which is a 7 percentage point increase year-over-year.
• Earnings Per Share (EPS): Reported at $1.89, beating expectations by $0.38.

Additionally, specific segments also showed significant growth:

• Google Cloud: Revenue up by 28% year-over-year to $9.6 billion with an operating margin of 9% (a 7pp increase year-over-year).
• YouTube Ads: Revenue increased by 21% to $8.1 billion.

In Alphabet's Q1 FY24 earnings, Google Cloud performed notably well with the following results:

• Revenue: Saw a 28% increase year-over-year, reaching $9.6 billion.
• Operating Margin: Improved to 9%, which is a 7 percentage point increase compared to the previous year.

According to Oxigeno | Finance Research, Google's cloud sector is projected to have a Compound Annual Growth Rate (CAGR) of 49% by 2030, starting from a base of $0.15 earnings per share (EPS) generated by the sector in 2023 and conservatively estimated to reach an EPS of $2.42 by 2030.