Alphabet is certainly proving itself as a frontrunner in generative AI, making noteworthy strides, especially with their Gemini initiative. The company’s dedication to comprehensive development and distinct AI innovation is quite clear, evident in its top-notch infrastructure, exceptional research capabilities, and expansive product platforms.
Let’s dive into the numbers for a closer look:
- Google Services saw revenue of $76.3 billion in Q4 2023, which climbed to $84.1 billion in Q4 2024, marking an increase of 10.2%.
- Google Search & Other witnessed a 12.5% uplift, jumping from $48 billion to $54 billion.
- YouTube ads experienced a robust 13.8% growth, moving from $9.2 billion to $10.5 billion.
- The Google Network faced a bit of a downturn, dipping by 4.1% from $8.3 billion to $8 billion.
- Google subscriptions, platforms, and devices rose by 7.8%, reaching $11.6 billion.
- Google Cloud notably surged by 30.1%, elevating its revenue from $9.2 billion to nearly $12 billion.
- However, the Other Bets category saw a sharp decline, plummeting 39.1% from $657 million to $400 million.
- Lastly, hedging gains or losses shifted dramatically from $150 million to just $20 million, noted as not meaningful.
Collectively, total revenues advanced from $86.3 billion in Q4 2023 to $96.5 billion in Q4 2024, a healthy 11.8% increase.
Breaking the $110 billion mark in revenue from YouTube and Cloud for 2024, Alphabet not only met but exceeded the ambitious $100 billion target. Impressively, their Gemini-powered products and platforms now cater to more than two billion users. The Google Services segment enjoyed a 10.2% growth year-over-year, totaling $84.1 billion in Q4 2024. This boost was largely fueled by a 12.5% rise in ad revenue from Google Search & Other, with significant activity in the financial services and retail sectors.
Despite a strong foundation laid in Q4 2023, with considerable gains from retailers based in the Asia-Pacific region, Alphabet’s commitment to AI-driven advancements continues to drive its growth trajectory.
