Google Cloud Earnings Surpass $11 Billion in Q3
In the third quarter, Google Cloud generated over $11 billion in revenue. Stay tuned to find out what drove these impressive numbers.
Google’s Parent Company Alphabet Sees Growth Driven by Cloud and Search
Technology behemoth Alphabet, the parent company of Google, reported impressive financial results for the third quarter. Announcing a revenue of $88.2 billion, this marks a 15% increase from the previous year’s $76.9 billion. This significant growth was primarily driven by Google’s Cloud and Search divisions.
Remarkable Revenue Surge from Google Cloud and Google Services
Google Cloud exhibited exceptional growth, with revenues surging by 35% year-over-year to $11.3 billion. Meanwhile, Google Services’ revenues rose by 13% to $76.5 billion, largely due to Google Search which itself generated $49.3 billion in revenues, up 12% from $44 billion the previous year.
Artificial Intelligence: A Significant Value Addition
Google executives credit these robust results to the Gemini generative AI models and the company’s AI infrastructure. “AI is truly energizing search,” stated Chief Business Officer Philipp Schindler during the earnings call. “Our new AI-powered features are making searches more useful, receiving positive feedback, especially from younger users.”
CEO Sundar Pichai highlighted that the generative AI-based search feature Circle is now available on over 150 million Android devices. “One-third of the people who have tried Circle to Search now use it weekly, proving its utility and potential,” he added.
Increasing Use of AI within Google
Pichai also revealed that all seven of Google’s products and platforms, each with over 2 billion monthly users, utilize its Gemini models. Additionally, Google uses AI internally to enhance its coding processes, thus boosting productivity and efficiency. “Today, over a quarter of all new code at Google is AI-generated, then reviewed and approved by engineers, helping them do more and move faster,” Pichai emphasized.
Regarding other third-quarter figures, CFO Anat Ashkenazi, in her first earnings call with Alphabet, noted that net profit was $26.3 billion, up from $19.6 billion a year earlier. YouTube’s advertising revenue reached $8.9 billion, a 12% increase from the previous year’s $7.9 billion, while network advertising revenue of $7.5 billion decreased by 2%. Lastly, the “other bets” generated $388 million in revenue but incurred an operating loss of $1.1 billion.