Summary
Alphabet Inc. reported strong financial results for the first quarter of 2024, with total revenues reaching $80.5 billion, a 15% increase year-over-year. This growth was primarily driven by a robust performance in Google Services, which saw a 14% increase in revenue, and a significant 28% surge in Google Cloud revenue. The company also demonstrated improved operational efficiency, with operating expenses decreasing by 2% year-over-year, leading to a substantial 46% increase in operating income and a significant expansion in operating margin to 32%. Net income saw a remarkable 57% increase to $23.7 billion, translating to diluted EPS of $1.89, up 62% from the prior year. Reflecting its financial strength and commitment to shareholder returns, Alphabet announced the initiation of a cash dividend program, declaring a $0.20 per share dividend payable in June 2024. The company also continued its aggressive share repurchase program, buying back $16.1 billion of its stock in the quarter and authorizing an additional $70 billion. Furthermore, Alphabet is making significant investments in its technical infrastructure, with capital expenditures of $12.0 billion in the quarter, signaling a strategic focus on supporting long-term growth initiatives, particularly in AI.
Financial Highlights
52 data points| Revenue | $80.54B |
| Cost of Revenue | $33.71B |
| Gross Profit | $46.83B |
| R&D Expenses | $11.90B |
| Operating Expenses | $55.07B |
| Operating Income | $25.47B |
| Interest Expense | $94.00M |
| Net Income | $23.66B |
| EPS (Basic) | $1.91 |
| EPS (Diluted) | $1.89 |
| Shares Outstanding (Basic) | 12.41B |
| Shares Outstanding (Diluted) | 12.53B |
Key Highlights
- 1Total revenues grew 15% year-over-year to $80.5 billion, driven by strong performance in Google Services and Google Cloud.
- 2Google Services revenue increased 14% to $70.4 billion, with Google advertising up 13% and subscriptions, platforms, and devices up 16%.
- 3Google Cloud revenue surged 28% year-over-year to $9.6 billion, indicating continued strong adoption.
- 4Operating income increased 46% to $25.5 billion, and operating margin expanded to 32% from 25% in the prior year, highlighting improved operational efficiency.
- 5Net income rose 57% to $23.7 billion, with diluted EPS up 62% to $1.89.
- 6The company initiated a quarterly cash dividend program, declaring a $0.20 per share dividend, and continued significant share repurchases ($16.1 billion in Q1 2024), with an additional $70 billion authorized.
- 7Capital expenditures increased to $12.0 billion, reflecting ongoing investments in technical infrastructure to support growth and AI initiatives.