Welcome, everyone. Thank you for standing by for the Alphabet Third Quarter 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. To ask a question during this session, you will need to press star 1 on your telephone. I would now like to hand the conference over to your speaker today, Jim Friedland, Senior Director of Investor Relations. Please go ahead. Thank you. Good afternoon, everyone, and we ...

Revenue Growth - Consolidated Alphabet revenues in Q3 2024 increased 15% year over year to $88.3 billion, with a 16% increase in constant currency[1] - Revenues for Q3 2024 increased to $88.268 billion, up 15.1% from $76.693 billion in Q3 2023[18] - Total constant currency revenues for Q3 2024 increased to $88.1 billion, up $3.5 billion from Q2 2024[29] - Total revenues excluding hedging effect rose to $88.251 billion in Q3 2024, a 15% increase from Q3 2023[28] - Constant currency revenues for Q3 2024 increased by 16% compared to Q3 2023[28] - Revenues excluding hedging effect in Q3 2023 were $76.694 billion, a 12% increase from Q3 2022[31] - Total revenues in Q3 2023 were $76.693 billion, an 11% increase from Q3 2022[31] Google Services Revenue - Google Services revenues increased 13% to $76.5 billion, driven by Google Search & other, Google subscriptions, platforms, and devices, and YouTube ads[1] - Google Services revenue grew to $76.510 billion in Q3 2024, up 12.5% from $67.986 billion in Q3 2023[21] - Google Search & other revenues increased to $49.385 billion in Q3 2024, up from $44.026 billion in Q3 2023[5] - Google subscriptions, platforms, and devices revenues increased to $10.656 billion in Q3 2024, up from $8.339 billion in Q3 2023[5] Google Cloud Revenue - Google Cloud revenues increased 35% to $11.4 billion, led by growth in Google Cloud Platform (GCP) across AI Infrastructure, Generative AI Solutions, and core GCP products[1] - Google Cloud revenue surged to $11.353 billion in Q3 2024, a 35.0% increase from $8.411 billion in Q3 2023[21] - Google Cloud operating income increased to $1.947 billion in Q3 2024, up from $266 million in Q3 2023[7] - Operating income from Google Cloud reached $1.947 billion in Q3 2024, a significant rise from $266 million in Q3 2023[21] Profitability - Total operating income increased 34% and operating margin expanded by 4.5 percentage points to 32%[1] - Net income increased 34% and EPS increased 37% to $2.12[1] - Net income for Q3 2024 rose to $26.301 billion, a 33.6% increase from $19.689 billion in Q3 2023[18] - Income from operations for Q3 2024 increased to $28.521 billion, a 33.6% rise from $21.343 billion in Q3 2023[18] Cash Flow and Dividends - Net cash provided by operating activities for Q3 2024 was $30.698 billion, slightly up from $30.656 billion in Q3 2023[19] - Free cash flow for Q3 2024 stood at $17.637 billion, calculated as net cash from operating activities minus capital expenditures[25] - Dividend payments to stockholders totaled $2.5 billion for the three months ended September 30, 2024[8] Other Income and Expenses - Other income (expense), net for Q3 2024 was $3.185 billion, driven by a $1.821 billion gain on equity securities[23] - Total costs and expenses for Q3 2024 amounted to $59.747 billion, up 7.9% from $55.350 billion in Q3 2023[18] Regional Revenue - United States revenues grew to $43.139 billion in Q3 2024, a 19% increase from Q3 2023[28] - EMEA revenues reached $25.472 billion in Q3 2024, a 12% increase from Q3 2023[28] - APAC revenues increased to $14.547 billion in Q3 2024, an 11% rise from Q3 2023[28] - Other Americas revenues grew to $5.093 billion in Q3 2024, a 12% increase from Q3 2023[28] YouTube Performance - YouTube's total ads and subscription revenues surpassed $50 billion over the past four quarters for the first time[1]

Google Earnings are DueGoogle parent and Zacks Rank #2 (Buy) stock Alphabet ((GOOGL) will report third-quarter earnings Tuesday, October 29th after the market closes. Below are the things you need to know about the upcoming report:Wall Street ExpectationsZacks Investment Research accumulates data from hundreds of Wall Street firms devlop its consensus estimates. Wall Street analysts tracked by Zacks expect Google to earn $1.83 for the third quarter, which represents 18.06% year-over-year growth, on $72.85 b ...

After reaching an all-time high of $192 in early July, Alphabet Inc. (NASDAQ: GOOGL) has experienced a pullback due to a mix of antitrust pressures and growing competition in the artificial intelligence (AI) landscape. With Alphabet’s Q3 earnings report set for release on October 29, investors are eagerly awaiting insights into how these developments are affecting the tech giant’s outlook. Currently trading at $164, with a modest 1% gain over the past month, investors are left wondering where Google’s stock ...

As Alphabet (NASDAQ: GOOGL) navigates an operational environment dominated by legal uncertainty stemming from antitrust issues, some analysts on Wall Street view this aspect as bearish for the company, leading to a recent adjustment of the firm’s stock.Specifically, in an investor note on October 14, Goldman Sachs (NYSE: GS) adjusted its outlook on Alphabet, citing ongoing concerns regarding the technology giant’s legal and competitive landscape.The bank’s analyst, Eric Sheridan, highlighted two significant ...

The U.S. labor market demonstrated unexpected resilience as September's job growth significantly exceeded forecasts, alleviating concerns about potential market deterioration. According to the U.S. Bureau of Labor Statistics, nonfarm payrolls increased by 254,000, far surpassing the anticipated 150,000. The revised figures for August showed an increase to 159,000, up from 142,000, and July's numbers were also revised upward by 55,000 to 144,000, marking an upward revision of 72,000 jobs across these months. ...

Investment Rating - The report assigns an "Overweight" rating to Google (GOOGL.O) in its first coverage [1] Core Views - Google's search dominance remains strong, with Gen AI enhancing search and advertising growth [1] - Google Cloud is positioned as the second growth curve, with SaaS as a key strength and MaaS potential for breakthroughs [1] - AI infrastructure investments are yielding results, with the company entering a profit release phase [1] - Gemini integration into Workspace is driving new growth opportunities [1] Business Analysis Search and Advertising - Google maintains control over desktop and mobile search channels through Chrome and Android, with high market share [1] - Gen AI-powered search features like SGE and AI Overviews are enhancing user experience and search value [1] - AI-driven advertising innovations, such as Gen AI-enabled ad tools, are improving ad efficiency and conversion rates [1] - YouTube's market share in social media continues to rise, supported by AI-driven creator tools [1][29] Google Cloud - Google Cloud's SaaS business, particularly Workspace, holds a higher market share than Microsoft Office in productivity software [1][48] - GCP, part of IaaS and PaaS, has room for growth, with MaaS potential due to strong in-house model development capabilities [1][48] - Capital expenditure on infrastructure is declining as a percentage of cloud revenue, with OPM turning positive [1][49] - Gemini's integration into Workspace is driving new growth, with AI becoming a key revenue driver [1][52] AI and Infrastructure - Google's AI infrastructure investments are paying off, with the company now in a profit release phase [1] - Gemini 1.5 Pro offers a 200K token context window, outperforming competitors like GPT-4 and Claude 3 in long-context processing [63][64] - Google's Vertex AI platform provides a unified environment for AI development, supporting both first-party and third-party models [69][70] Financial Projections - Revenue is projected to grow from $347.66 billion in 2024 to $431.04 billion in 2026, with a CAGR of 10.8% [2] - Net income is expected to increase from $96.39 billion in 2024 to $116.00 billion in 2026, with a CAGR of 10.2% [2]

Elon Musk is on a mission to build new supercomputers. As the CEO of Tesla and his new artificial intelligence startup xAI, the tech titan has big plans for how artificial intelligence can help to supercharge his businesses.In January, he wrote on X that Tesla should be viewed as an AI/robotics company rather than a car company. Tesla's custom-built supercomputer named Dojo is key to this transformation. Tesla has said it plans to spend $500 million to build the supercomputer in Buffalo, New York. Tesla is ...

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Microsoft, Google and Amazon along with other tech companies have been getting creative in how they're poaching talent from top artificial intelligence startups.Earlier this month, Google signed an unusual deal with Character.ai to hire away its prominent founder and more than one-fifth of its workforce while also licensing its technology. It looked like an acquisition, but the deal was structured so that it wasn't. Google wasn't the first to take this approach.Microsoft laid the groundwork in its deal with ...