Alphabet(GOOGL) - 2024 Q2 - Quarterly Report

Financial Performance - Revenues for the second quarter of 2024 reached $84.742 billion, a 13.8% increase from $74.604 billion in the same quarter of 2023[11] - Net income for the second quarter of 2024 was $23.619 billion, up from $18.368 billion in the same quarter of 2023, representing a 28.5% increase[11] - Basic net income per share for Q2 2024 was $1.91, compared to $1.45 in Q2 2023, marking a 31.7% increase[11] - Total revenues for the three months ended June 30, 2024, were $84,742 million, up from $74,604 million in the same period of 2023, reflecting a 13.7% growth[31] - Net income for the six months ended June 30, 2024, was $47,281 million, compared to $33,419 million for the same period in 2023, representing a 41.4% increase[22] - Total revenues for the six months ended June 30, 2024, reached $165.3 billion, up 14.4% from $144.4 billion in the same period of 2023[107] - Google Services revenue for the six months ended June 30, 2024, was $144.3 billion, representing a 12.6% increase from $128.2 billion in the prior year[107] Expenses and Costs - Research and development expenses increased to $11.860 billion in Q2 2024, compared to $10.588 billion in Q2 2023, reflecting a focus on innovation[11] - The total costs and expenses for Q2 2024 were $57.317 billion, up from $52.766 billion in Q2 2023, indicating a rise in operational costs[11] - Stock-based compensation expense for the six months ended June 30, 2024, was $11.129 billion, compared to $11.058 billion in the same period of 2023[22] - The provision for income taxes for Q2 2024 was $3,932 million, compared to $3,535 million in Q2 2023, reflecting an increase of 11.3%[11] Cash and Investments - Cash and cash equivalents at the end of the period were $25,929 million, compared to $21,879 million at the beginning of the period, indicating a net increase of $4,050 million[22] - Cash and cash equivalents as of June 30, 2024, were $27,225 million, compared to $24,048 million as of December 31, 2023, showing a 9% increase[9] - The carrying value of non-marketable equity securities was $31.6 billion as of June 30, 2024, with $2.2 billion remeasured at fair value during the quarter[41] - Total investments with fair value were $88.854 billion as of June 30, 2024, with gross unrealized losses of $1.462 billion[40] Revenue Sources - Google Cloud revenue for the six months ended June 30, 2024, reached $19,921 million, compared to $15,485 million in the same period of 2023, marking a 28.5% increase[31] - Google Search & other revenues for the three months ended June 30, 2024, were $48,509 million, compared to $42,628 million in the same period of 2023, an increase of 13.5%[31] - YouTube ad revenues for the three months ended June 30, 2024, were $8,663 million, up from $7,665 million in the same period of 2023, representing a 13.0% growth[31] Shareholder Returns - The company declared dividends of $0.20 per share during the three months ended June 30, 2024, totaling $2,543 million[20] - As of June 30, 2024, the company repurchased $31.7 billion of its Class A and Class C shares in the first half of 2024, with $74.9 billion remaining available for future repurchases[91] - The company declared a cash dividend of $0.20 per share on April 25, 2024, totaling $1.2 billion for Class A shares, $173 million for Class B shares, and $1.1 billion for Class C shares[93] Legal and Regulatory Matters - The company is facing heightened regulatory scrutiny, which could affect business practices and financial results[6] - The company is involved in multiple ongoing antitrust investigations and lawsuits, including a trial scheduled for March 2025 regarding its advertising technology[84] - The company has ongoing legal matters related to Russia, including civil judgments regarding account terminations, but does not expect these to have a material adverse effect[89] Future Outlook - The company expects continued growth in revenues beyond advertising, driven by the shift to online services[6] - The company plans to continue investing in new businesses, products, and technologies, as well as strategic acquisitions[6] - Alphabet plans to continue investing in AI and new technologies, consolidating AI model development teams under Google DeepMind to accelerate progress[105]