10-QPeriod: Q2 FY2024

Alphabet Inc. Quarterly Report for Q2 Ended Jun 30, 2024

Filed July 24, 2024For Securities:GOOGLGOOGGOOGMGOOGN

Summary

Alphabet Inc. reported strong financial results for the second quarter of 2024, with total revenues reaching $84.7 billion, a 14% increase year-over-year. This growth was primarily driven by a 12% increase in Google Services revenues, totaling $73.9 billion, and a substantial 29% surge in Google Cloud revenues, amounting to $10.3 billion. The company also saw significant improvements in profitability, with operating income rising 26% to $27.4 billion and net income increasing by 29% to $23.6 billion. Key drivers for the robust performance include continued strength in Google Search & advertising, alongside growing contributions from Google subscriptions, platforms, and devices. Google Cloud's accelerated growth highlights its increasing importance as a revenue contributor. The company demonstrated strong cash flow generation, with operating cash flow at $26.6 billion for the quarter, and continued its commitment to returning capital to shareholders through significant share repurchases totaling $15.6 billion and initiated its first quarterly dividend. Investment in technical infrastructure, particularly for AI, remains a priority, as reflected in a 25% increase in capital expenditures year-over-year to $25.2 billion for the first six months of the year.

Financial Highlights

52 data points
Beta

Revenue

$84.74B

58.1% Gross Margin

Net Income

$23.62B

27.9% Net Margin

EPS (Diluted)

$1.89

Total Assets

$414.77B

Cash & Equivalents

$27.23B

Free Cash Flow

$13.45B

Financial Statements
Beta
Revenue$84.74B
Cost of Revenue$35.51B
Gross Profit$49.23B
R&D Expenses$11.86B
Operating Expenses$57.32B
Operating Income$27.43B
Net Income$23.62B
EPS (Basic)$1.91
EPS (Diluted)$1.89
Shares Outstanding (Basic)12.34B
Shares Outstanding (Diluted)12.49B

Key Highlights

  • 1Total revenues increased 14% year-over-year to $84.7 billion.
  • 2Google Services revenue grew 12% to $73.9 billion, driven by advertising and subscriptions.
  • 3Google Cloud revenue surged 29% to $10.3 billion, indicating strong enterprise adoption.
  • 4Operating income rose 26% to $27.4 billion, with operating margin improving to 32%.
  • 5Net income increased 29% to $23.6 billion, resulting in diluted EPS of $1.89.
  • 6The company initiated its first quarterly cash dividend of $0.20 per share.
  • 7Share repurchases totaled $15.6 billion for the quarter, with $74.9 billion remaining under authorized programs.

Frequently Asked Questions

Alphabet reported a 14% year-over-year increase in total revenues for the second quarter of 2024, reaching $84.7 billion. This growth was primarily fueled by Google Services, which increased by 12% to $73.9 billion, and a strong 29% surge in Google Cloud revenues to $10.3 billion.

Profitability showed significant improvement. Operating income increased by 26% to $27.4 billion, and the operating margin expanded to 32%. Net income grew by 29% to $23.6 billion, leading to diluted earnings per share (EPS) of $1.89.

Alphabet demonstrated a commitment to returning capital to shareholders. The company repurchased $15.6 billion of Class A and Class C shares during the quarter and announced its first quarterly cash dividend of $0.20 per share, reflecting a strategic shift in capital allocation.

The company continued to make substantial investments in its technical infrastructure, with capital expenditures for the first six months of 2024 totaling $25.2 billion, a 25% increase year-over-year. These investments are particularly focused on supporting the growth of its business and long-term initiatives, especially in AI products and services.