Alphabet’s Strong Q1’24 Performance: Earnings Highlights and Strategic Insights

Alphabet Q1’24 Earnings Highlights:

Earnings Per Share (EPS): 
– Reported EPS: $1.89 (Estimated: $1.53); Increased +24% YoY

Total Revenue: 
– Reported Revenue: $80.54B (Estimated: $79.04B); Increased +15% YoY

Operating Income: 
– Reported Operating Income: $25.47B (Estimated: $22.4B); Increased +14% YoY

Operating Margin: 
– Operating Margin: 32% (Estimated: 28.6%); Increased by +7 percentage points (pp) YoY

Announcements: 
– First-ever dividend declared: $0.20/share 
– Approved $70B share buyback

Google Cloud: 
– Revenue: $9.57B (Estimated: $9.37B); Increased +28% YoY
– Operating Income: $900M (Estimated: $672.4M); Increased +371% YoY
– Operating Margin: 9% (+7pp YoY)

Google Services: 
– Revenue: $70.4B (Estimated: $69.06B); Increased +14% YoY
– Operating Income: $27.90B (Estimated: $24.3B); Increased +15% YoY
– Google Search & Other Revenue: $46.16B
– YouTube Ads Revenue: $8.09B (Estimated: $7.73B); Increased +21% YoY

Other Bets: 
– Revenue: $495M (Estimated: $372.4M); Increased +33% YoY
– Operating Loss: $1.02B (Estimated Loss: $1.12B); Loss reduced by 9% YoY

Google Advertising: 
– Revenue: $61.66B (Estimated: $60.18B); Increased +13% YoY

Key Metrics and Other Information: 
– Capital Expenditure: $12.01B (Estimated: $10.32B); Increased +16% YoY
– Number of Employees: 180,895
– Traffic Acquisition Costs: $12.95B

CEO Sundar Pichai’s Commentary: 
– “Results in Q1 reflect strong performance from Search, YouTube, and Cloud. We’re well underway with Gemini and seeing great momentum across the company, with a leadership position in AI research and infrastructure.”

President and CIO Ruth Porat’s Commentary: 
– “Strong financial results for the first quarter reflect revenue strength across the company and ongoing efforts to durably reengineer the cost base.”

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