Alphabet today announced its earnings results for the third quarter that ended September 30, 2024. Overall, Alphabet"s revenue increased 15% to $88.3 billion. Google, in particular, reported strong momentum across all key verticals. Google Services" revenues increased 13% to $76.5 billion, thanks to strong growth from Google Search & other services, Google subscriptions, platforms and devices, and YouTube ads. Google Cloud"s revenue increased 35% to $11.4 billion, led by strong growth in Google Cloud Platform (GCP) across AI Infrastructure, Generative AI Solutions, and core GCP products.
During the earnings call, Google shared several interesting numbers related to its products and services. For example, for the first time, YouTube"s combined ad and subscription revenue over the past four quarters has surpassed $50 billion. This is an incredible feat for a product that Google acquired in 2006 for just $1.65 billion.
Google now has 7 products and services with over 2 billion monthly users. This list includes Google Search, Play Store, Chrome, Google Maps, Gmail, YouTube, and Android. All seven of these products and services now utilize Gemini models to deliver AI experiences to users.
Google also revealed that it is using AI internally to improve its coding processes. In fact, over a quarter of all new code at Google is generated by AI and then reviewed and accepted by engineers. This boosts productivity and efficiency significantly.
Over 20 billion visual searches now take place using Google Lens each month. Google mentioned that Lens is one of the fastest-growing query types on Google Search. On the Google Cloud front, Gemini API calls have grown nearly 14x in six months, BigQuery ML operations have grown 80% over six months, and customer adoption of Mandiant-powered threat detection has increased 4x over the last six quarters.
Finally, Waymo is driving more than 1 million fully autonomous miles and serves over 150,000 paid rides each week. This is the first time any autonomous vehicle company has reached this scale.
Sundar Pichai, CEO of Alphabet, said the following regarding the Q3 earnings performance:
"The momentum across the company is extraordinary. Our commitment to innovation, as well as our long-term focus and investment in AI, are paying off, with consumers and partners benefiting from our AI tools. In Search, our new AI features are expanding what people can search for and how they search for it. In Cloud, our AI solutions are helping drive deeper product adoption with existing customers, attract new customers, and win larger deals. And YouTube"s total ads and subscription revenue surpassed $50 billion over the past four quarters for the first time. We generated strong revenue growth in the quarter, and our ongoing efforts to improve efficiency helped deliver improved margins. I"m looking forward to driving more advances for consumers, customers, and creators globally."
Alphabet"s continued investment in AI is clearly yielding positive results, positioning the company for ongoing success in the evolving tech landscape.