Alphabet sees Q3 surge as Google search, YouTube Ads, spark growth
By Felicia Nwosu
Alphabet Inc. posted a robust 15% increase in Q3 2024 revenue, hitting $88.27 billion, powered by resilient growth in Google’s search ads, a YouTube boom, and new AI enhancements. This leap builds on Q2’s $84.7 billion earnings and $23.62 billion net income, showcasing Alphabet’s expanding influence across digital and AI-enabled platforms.
Amazingly, the record showed that Alphabet’s Q3 results reflect its strategic blend of traditional ad revenue and innovative AI tools, fortifying its market position amid competitive and regulatory headwinds.
It also indicated that ad revenue for Google rose 10.6% to reach $65.9 billion, with search services leading the charge. Search revenue saw a 12% bump to $49.4 billion, outperforming analyst expectations slightly. The company noted that AI features are re-energizing search, especially among users aged 18-34, who are drawn to its “Circle to Search” tool, which intuitively connects user intent with relevant advertiser content.
In visual search, Google’s Lens tool now handles around 20 billion searches, with one in four geared toward buying decisions, signaling a shift toward visually-driven shopping behavior. Additionally, AI-driven “Overviews” are delivering tailored ads in U.S. mobile searches, which users have found valuable for simplifying purchase choices.
Beyond search, Google’s Services division rose 13% to $76.5 billion, propelled by Google Search, new subscription models, and devices. YouTube ad revenue climbed to $8.92 billion, up from last year’s $7.95 billion.
For the first time, YouTube’s ad and subscription revenue crossed the $50 billion mark over the past four quarters, thanks to services like YouTube TV, NFL Sunday Ticket, and YouTube Music Premium. CEO Sundar Pichai highlighted YouTube’s latest features during the earnings call, such as Multiview and episode-style organization, enabling creators to deliver TV-like experiences.
According Mediapost, Google Cloud also saw a remarkable 35% annual revenue gain, bringing in $11.4 billion, as demand for its AI solutions surged. Alphabet’s solid performance comes despite ongoing antitrust challenges from U.S. regulators, Yelp, and Microsoft, which claims Google has undercut its competitive standing.
RECOMMENDED ARTICLES
Comment
No comments found.