Search engine giant Google just reported a 15% revenue growth as AI expands into its Search and Cloud. This gave rise to a record in the third quarter results for 2024.
The revenue for Alphabet Inc. hit $88.3B which is a stark 15% rise from 2023.
The firm that owns Google had an operating margin reach 32% which again rose from the previous 27% YoY. Net income similarly grew 34% to hit the $26B mark.
The tech giant also made it clear during its earnings call how a lot of success was due to AI’s expanding over all products and services. The revenue for Google Cloud rose 35% to hit $11.4B while the figures for YouTube went above $50B in a combination of ads and subscription earnings. This is a record when you look at the past four quarters.
Meanwhile, a number of operational changes also arose during Q3 including reshuffling of AI teams and more AI launched across different Google products. Similarly, a lot of improvements were made to AI systems to ensure better efficiency and more AI-based search capabilities.
CEO Sundar Pichai also shared his insights about AI and how it’s dominating the world of search. He explained to investors that a lot of AI features make it easier for people to find what they’re in search of. The company’s investments in this tech are really giving rise to massive gains. Google keeps on rolling out new codes and this gets reviewed by expert engineers who ensure great development.
Google also said it has enabled prices for AI Overview costs to fall by 90% in nearly 18 months. This comes as its Gemini AI model doubled in size. The changes extend across several Google products that served more than 2B monthly users.
The company’s Google Cloud division operated an income comprising $1.9B that showed a stark rise from the past $266M during the same time last year. A lot of this had to do with company leadership and the greater adoption of AI amongst leading business clients.
Google also shared how it would be transferring Gemini’s AI team to assist with the firm’s DeepMind division to ensure seamless integration.
As far as YouTube is concerned, it also attained a milestone in this period. Both ads and subscriptions went over $50B over the last few quarters. The ads revenue rose to $8.9B in just four quarters.
Revenue from ads hit $8.9B but the bigger component which is subscriptions and platforms hit $10.7 billion. Meanwhile, net income rose to 34% to reach $26.3B. The operating margins expanded to just 32% from the old 27% seen in the past year. The earnings for each share also reached a growth of 37% while revenue for Total Google Services saw a 13% rise.
To sum it up, Google’s results for Q3 show a clear change in search behavior. AI Overviews currently stand at 1B users each month and this is just the start. Pichai predicts users will send longer queries and go to more websites to better search when they get comfortable with what AI has to offer.
Image: DIW-Aigen
Read next: British Couple Wins Legal Case Worth Billions Against Google Over Search Manipulation
The revenue for Alphabet Inc. hit $88.3B which is a stark 15% rise from 2023.
The firm that owns Google had an operating margin reach 32% which again rose from the previous 27% YoY. Net income similarly grew 34% to hit the $26B mark.
The tech giant also made it clear during its earnings call how a lot of success was due to AI’s expanding over all products and services. The revenue for Google Cloud rose 35% to hit $11.4B while the figures for YouTube went above $50B in a combination of ads and subscription earnings. This is a record when you look at the past four quarters.
Meanwhile, a number of operational changes also arose during Q3 including reshuffling of AI teams and more AI launched across different Google products. Similarly, a lot of improvements were made to AI systems to ensure better efficiency and more AI-based search capabilities.
CEO Sundar Pichai also shared his insights about AI and how it’s dominating the world of search. He explained to investors that a lot of AI features make it easier for people to find what they’re in search of. The company’s investments in this tech are really giving rise to massive gains. Google keeps on rolling out new codes and this gets reviewed by expert engineers who ensure great development.
Google also said it has enabled prices for AI Overview costs to fall by 90% in nearly 18 months. This comes as its Gemini AI model doubled in size. The changes extend across several Google products that served more than 2B monthly users.
The company’s Google Cloud division operated an income comprising $1.9B that showed a stark rise from the past $266M during the same time last year. A lot of this had to do with company leadership and the greater adoption of AI amongst leading business clients.
Google also shared how it would be transferring Gemini’s AI team to assist with the firm’s DeepMind division to ensure seamless integration.
As far as YouTube is concerned, it also attained a milestone in this period. Both ads and subscriptions went over $50B over the last few quarters. The ads revenue rose to $8.9B in just four quarters.
Revenue from ads hit $8.9B but the bigger component which is subscriptions and platforms hit $10.7 billion. Meanwhile, net income rose to 34% to reach $26.3B. The operating margins expanded to just 32% from the old 27% seen in the past year. The earnings for each share also reached a growth of 37% while revenue for Total Google Services saw a 13% rise.
To sum it up, Google’s results for Q3 show a clear change in search behavior. AI Overviews currently stand at 1B users each month and this is just the start. Pichai predicts users will send longer queries and go to more websites to better search when they get comfortable with what AI has to offer.
Read next: British Couple Wins Legal Case Worth Billions Against Google Over Search Manipulation
