Alphabet (GOOGL) Q1 Earnings Beat, Revenues Increase Y/Y

Core Insights - Alphabet's first-quarter 2024 earnings per share were $1.89, exceeding the Zacks Consensus Estimate by 26.8% and reflecting a year-over-year growth of 61.5% [1] - Total revenues reached $80.54 billion, marking a 15% increase year over year, with a 16% increase at constant currency [1] - Net revenues, excluding traffic acquisition costs, were $67.6 billion, surpassing the consensus estimate of $66.04 billion and growing 16.4% year over year [1] Revenue Breakdown - Google Services revenues increased 13.6% year over year to $70.4 billion, accounting for 87.4% of total revenues, beating the Zacks Consensus Estimate of $69.04 billion [3] - Search revenues from Google-owned sites rose 14.4% year over year to $46.16 billion, exceeding the consensus estimate of $44.7 billion [3] - YouTube's advertising revenues improved 20.9% year over year to $8.1 billion, while Network advertising revenues decreased 1.1% to $7.4 billion, with total Google advertising revenues up 13% year over year to $61.7 billion [3] Segment Performance - Google Cloud revenues rose 28.4% year over year to $9.6 billion, accounting for 11.9% of total revenues and surpassing the Zacks Consensus Estimate of $9.2 billion [5] - Other Bets revenues were $495 million, up 71.9% year over year, and accounted for 0.6% of total revenues, beating the consensus mark of $384 million [6] Regional Performance - EMEA generated $23.8 billion in revenues, increasing 13% year over year [7] - APAC revenues reached $13.3 billion, up 14% from the previous year [8] - Other Americas generated $4.7 billion, up 14% year over year, while the United States contributed $38.7 billion, an 18% increase from the prior year [8] Operating Metrics - Total costs and operating expenses were $55.1 billion, up 5.1% year over year, with the operating margin expanding to 32%, a 700 basis point increase [9] - Google Cloud reported operating income of $900 million compared to $191 million in the year-ago quarter [9] - Other Bets reported a loss of $1.02 billion, an improvement from a loss of $1.2 billion in the prior year [9] Financial Position - As of March 31, 2024, cash, cash equivalents, and marketable securities totaled $108.1 billion, down from $110.9 billion at the end of 2023 [10] - Long-term debt was $13.23 billion, slightly down from $13.25 billion in the previous quarter [10] - Alphabet generated $28.8 billion in cash from operations in Q1 2024, compared to $19.92 billion in Q4 2023 [10]