- Alphabet, Google’s parent company, reported nearly $85 billion in revenue for Q2 2024, marking a 14% increase from the same period last year.
- The company’s Search and Cloud businesses drove significant growth, with generative AI solutions contributing billions in revenue.
OUR TAKE
Alphabet’s remarkable financial performance highlights the crucial role of its Search and AI innovations in driving revenue growth. The impressive Q2 results underscore Google’s strategic focus on expanding its AI capabilities and cloud services, reflecting its ongoing commitment to technological advancement and market leadership.
— Zoey Zhu, BTW reporter
What happened
Alphabet, the parent company of Google, reported nearly $85 billion in revenue for the second quarter of 2024, representing a 14% increase year-over-year. Search alone contributed $48.5 billion, showcasing its continued importance as a major revenue driver for the company. Google’s Cloud division also achieved a significant milestone, surpassing $10 billion in revenue and recording $1 billion in operating profit for the first time.
CEO Sundar Pichai highlighted the success of Google’s generative AI solutions, which have already generated billions in revenue and are being utilised by over 2 million developers. Despite some challenges with AI Overviews in Search—where users encountered inaccurate responses—Pichai noted that these tools have contributed to increased Search usage and overall user satisfaction.
Additionally, Google has adjusted its strategy regarding third-party cookies. Instead of eliminating them by default, Chrome will now provide users with more control over their cookie preferences, reflecting a broader trend towards enhanced user privacy and adaptability in the digital landscape.
Also read: Google is using AI to answer search queries
Also read: Alphabet plans to acquire cybersecurity startup Wiz for $23B
Why it’s important
Alphabet’s strong revenue growth highlights the key roles of its Search and Cloud businesses. Search generated $48.5 billion, demonstrating its continued dominance, while the Cloud division surpassed $10 billion in revenue and achieved $1 billion in operating profit, marking a milestone in Google’s cloud strategy.
Google’s success with generative AI showcases the technology’s impact on revenue and innovation. AI advancements not only enhance Google’s products but also attract developers and businesses. Despite initial challenges with AI Overviews in Search, Google’s ongoing improvements show its commitment to advancing AI and meeting user needs.
Google’s new approach to third-party cookies balances user privacy with browsing practicality. By letting users manage their cookie preferences, Google aligns with evolving privacy standards and sets new industry benchmarks.
Overall, Alphabet’s strong performance and strategic moves position it well for future growth, with continued focus on AI, cloud computing, and upcoming hardware releases to reinforce its technology sector leadership.
