On July 23, 2024, Alphabet Inc (GOOGL, Financial) released its 8-K filing for the second quarter of 2024, showcasing impressive financial results that surpassed analyst estimates. Alphabet reported quarterly revenues of $84.74 billion, exceeding the estimated $84.20 billion, and a diluted earnings per share (EPS) of $1.89, surpassing the estimated $1.85.
Company Overview
Alphabet Inc is a holding company with Google as its wholly owned subsidiary. Google services, which include online ads, Google Play, YouTube, and hardware sales, account for nearly 90% of Alphabet's revenue. Google's cloud computing offerings contribute a bit more than 10% of total revenue. Alphabet also invests in various technology ventures through its Other Bets segment, including Verily, Google Fiber, and Waymo.
Performance Highlights
Alphabet's Q2 2024 performance was driven by strong results in its core segments. Google Search and other services generated $48.51 billion in revenue, while YouTube ads contributed $8.66 billion. Google Cloud achieved a significant milestone, surpassing $10 billion in quarterly revenue for the first time, with an operating profit of $1.17 billion.
"Our strong performance this quarter highlights ongoing strength in Search and momentum in Cloud. We are innovating at every layer of the AI stack," said Sundar Pichai, CEO of Alphabet Inc.
Financial Achievements
Alphabet's consolidated revenues for Q2 2024 were $84.74 billion, a 14% increase year-over-year. The company's operating income rose to $27.43 billion, with an operating margin of 32%. Net income for the quarter was $23.62 billion, resulting in a diluted EPS of $1.89.
| Quarter Ended June 30 | 2023 | 2024 |
|---|---|---|
| Revenues | $74.60 billion | $84.74 billion |
| Operating Income | $21.84 billion | $27.43 billion |
| Net Income | $18.37 billion | $23.62 billion |
| Diluted EPS | $1.44 | $1.89 |
Income Statement and Balance Sheet Insights
Alphabet's income statement reveals a robust growth trajectory, with total costs and expenses amounting to $57.32 billion, up from $52.77 billion in Q2 2023. The balance sheet shows total assets of $414.77 billion, with cash and cash equivalents increasing to $27.23 billion from $24.05 billion at the end of 2023.
Cash Flow and Dividend Program
Alphabet's cash flow statement indicates strong liquidity, with net cash provided by operating activities. The company announced a cash dividend of $0.20 per share, payable on September 16, 2024, to stockholders of record as of September 9, 2024.
Analysis and Outlook
Alphabet's Q2 2024 results underscore its dominant position in the interactive media industry, driven by its core advertising business and growing cloud segment. The company's ability to innovate in AI and cloud computing positions it well for future growth. However, challenges such as increasing costs and competitive pressures in the cloud market may impact future performance.
For more detailed insights and analysis, visit GuruFocus.com.
Explore the complete 8-K earnings release (here) from Alphabet Inc for further details.
