Despite making a slew of awful changes to its core product, Search, Google’s financials have never looked better with increases across the board…
Google Q1 2024 Earnings Infographic
Revenue
Operating Income
Net Income
Earnings Per Share
Segment Performance
Google Services
Operating Income: $27.90 billion
Google Cloud
Operating Income: $900 million
Other Bets
Operating Loss: $1.02 billion
Key Highlights
- Google Search & other advertising revenue grew by 14%
- YouTube ads revenue increased by 21%
- Google Cloud shows strong growth and improved profitability
- Ongoing investments in AI technology across products and services
- Operating expenses decreased by 2% year-over-year
- $16.1 billion of shares repurchased during the quarter
- Announced first-ever quarterly cash dividend of $0.20 per share
- 180,895 employees as of March 31, 2024
Google is Making A Killing With Its AI Investments
Google’s parent company Alphabet has not only crushed Q1 expectations but also dropped a dividend bombshell. The tech behemoth’s latest earnings report reads like a sci-fi novel where AI is the protagonist, and spoiler alert: the robots are winning.
$80.54 billion in Revenue
Alphabet reported a staggering $80.54 billion in revenue, up 15% year-over-year, with net income soaring to $23.66 billion—a 57% increase that’s making Wall Street algorithms overheat.
But the real headline? Google is finally sharing the wealth, announcing its first-ever quarterly dividend of $0.20 per share. It’s as if the tech giant looked at its Scrooge McDuck-sized money bin and decided to make it rain on shareholders.
Google Cloud
The star of this financial blockbuster is undoubtedly Google Cloud, which saw its revenue rocket by 28% to $9.57 billion. It seems the cloud is no longer just for storing cat pictures; it’s where serious business happens. And with $900 million in operating income, it’s clear that Google’s head is no longer stuck in the clouds—it’s profiting from them.
But let’s talk about the elephant in the room: AI. Google’s been betting big on artificial intelligence, and it’s paying off like a rigged slot machine.
Artificial Intelligence
The company’s emphasis on AI investments across its product lineup is likely the secret sauce behind the 14% growth in Google Search advertising and the eye-popping 21% increase in YouTube ad revenue. It turns out, teaching machines to think is good for business.
Meanwhile, Google’s “Other Bets” segment continues to be the company’s eccentric uncle, bringing in $495 million in revenue but losing $1.02 billion. It’s like watching a Silicon Valley version of “Brewster’s Millions,” but with more self-driving cars and internet-beaming balloons.
Google managed to decrease its operating expenses by 2% year-over-year. This cost-cutting prowess, combined with the $16.1 billion in share repurchases, paints a picture of a tech giant that’s both innovative and fiscally responsible (although its on-going disputes in court paint a different picture entirely).
Number of Employees
As of March 31, 2024, Alphabet’s workforce stood at 180,895 employees. That’s enough people to populate a small city—let’s call it Googleville, but the elephant in the room, for a growing number of people, is Google’s ongoing problem with its Search product – it’s just not as good as it used to be.
Add in the controversy around it backtracking on removing cookies from Chrome and while things might look rosy from Wall Street’s perspective, there has never been more negative sentiment towards to search giant in its entire 25-year history.
