Alphabet, Google's parent company, reported a strong performance for the third quarter of its 2024 fiscal year. The company achieved total revenue of $88.27 billion, marking a 15% increase from the previous year's $76.69 billion. Excluding currency fluctuations, revenue grew by 16%. Alphabet's net profit for the quarter increased by 34% to $26.30 billion, with diluted earnings per share rising to $2.12 from $1.55 in the same period last year.
Operating profit for the quarter was $28.52 billion, representing an operating margin of 32%, up from 28% last year. Google Search and other services contributed $49.39 billion, while YouTube ads generated $8.92 billion in revenue, both surpassing last year's figures. However, network revenue through AdSense slightly declined to $7.55 billion.
Google's advertising revenue totaled $65.85 billion, reflecting growth compared to the previous year. Meanwhile, its subscription, platform, and device division saw revenues climb to $10.65 billion. Google Cloud revenue experienced significant growth, reaching $11.35 billion.
Alphabet's "Other Bets" segment reported $388 million in revenue, and a gain from financial hedging of $17 million was noted, improving from a $1 million loss the previous year.
By region, revenues from EMEA (Europe, Middle East, and Africa) increased 12% to $25.47 billion. In the Asia-Pacific region, revenues rose 11% to $14.55 billion. The U.S. saw a revenue increase of 19% to $43.14 billion, and other American regions witnessed a 12% increase, totaling $5.09 billion.
Traffic acquisition costs increased to $13.72 billion from $12.64 billion. Total costs and expenses also rose to $59.75 billion, with specific increases in revenue cost to $36.47 billion, R&D expenses to $12.45 billion, and sales and marketing to $7.23 billion. General and administrative expenses slightly decreased.
Alphabet reported other net income of $3.18 billion, a turnaround from a net expense of $146 million last year. Google's services segment generated an operating profit of $30.86 billion, while Google Cloud achieved a substantial increase in operating profit to $1.95 billion. The "Other Bets" segment's operating loss narrowed slightly, and corporate costs increased.
Operating activities provided net cash of $30.70 billion. Free cash flow stood at $17.64 billion. The company held cash and equivalents totaling $19.96 billion as of September 30, 2024, compared to $30.70 billion a year earlier. The workforce slightly decreased to 181,269 full-time employees.
The quarter's earnings exceeded analyst expectations, driving Alphabet's stock (GOOG, Financial) up significantly in post-market trading. Analysts had predicted revenue of $86.33 billion and an EPS of $1.85, while Alphabet outperformed with higher actual figures across its segments.
Alphabet's stock price initially rose by $2.80 to close at $171.14 in regular trading. In after-hours trading, it surged by $8.82 to $179.96, reflecting a substantial 5.15% increase. Over the past 52 weeks, Alphabet's stock has varied between $123.93 and $193.31.
