Highlights
- Alphabet reports Q2 revenue of $84.74 billion, up 13.6% year-over-year.
- YouTube ad revenue grows 13% to $8.66 billion but falls short of expectations.
- Google Cloud revenue surpasses $10 billion with $1 billion in operating profit.
- Alphabet’s stock drops 2.18% in after-hours trading due to YouTube’s performance.
Alphabet, Google’s parent company, reported its second-quarter results for 2024, showcasing overall growth but with YouTube’s performance falling short of expectations.
Despite a 13% year-over-year increase in YouTube ad revenue, the video platform’s performance disappointed investors, leading to a sell-off in Alphabet’s stock during after-hours trading.
Google’s Advertising Revenue Shows Strong Growth
Google’s advertising business demonstrated robust growth, with total advertising revenue reaching $64.62 billion, an 11% increase from the same period last year.
Google Search ad revenue rose 13.8% to $48.51 billion, while YouTube ad revenue grew 13% to $8.66 billion.
Sundar Pichai, CEO of Alphabet and Google, commented on the results: “Our strong performance this quarter highlights ongoing strength in Search and momentum in Cloud. We are innovating at every layer of the AI stack. Our longstanding infrastructure leadership and in-house research teams position us well as technology evolves and as we pursue the many opportunities ahead.”
Other Business Segments Show Promise
Google’s Cloud business saw significant growth, with revenue increasing 28.8% to $10.35 billion, marking the first time it surpassed $10 billion in quarterly revenue and $1 billion in operating profit.
The segment including Pixel devices and Google subscriptions also showed strong performance, with revenue growing 14.4% to $9.31 billion.
Alphabet’s Financial Performance
Alphabet’s total revenue for Q2 2024 reached $84.74 billion, a 13.6% increase from the previous year.
Net income grew by 28.6% to $23.62 billion, with diluted earnings per share rising 31.3% to $1.89.
Ruth Porat, Alphabet’s president and chief investment officer, stated: “We delivered revenues of $85 billion, up 14% year-on-year driven by Search as well as Cloud, which for the first time exceeded $10 billion in quarterly revenues and $1 billion in operating profit. As we invest to support our highest growth opportunities, we remain committed to creating investment capacity with our ongoing work to durably re-engineer our cost base.”
Market Reaction
Despite beating overall earnings and revenue expectations, Alphabet’s stock price fell 2.18% in after-hours trading, primarily due to YouTube’s weaker-than-expected performance.
This reaction highlights the importance investors place on YouTube’s growth within Alphabet’s diverse portfolio of services.
FAQs
How did Alphabet perform overall in Q2 2024?
Alphabet reported total revenue of $84.74 billion, a 13.6% increase from the previous year, with net income growing 28.6% to $23.62 billion.
What was the performance of YouTube in Q2 2024?
YouTube ad revenue grew 13% to $8.66 billion, which was below investor expectations, contributing to a drop in Alphabet’s stock price in after-hours trading.
How did Google Cloud perform in Q2 2024?
Google Cloud saw significant growth, with revenue increasing 28.8% to $10.35 billion and operating profit exceeding $1 billion for the first time.
What was the market reaction to Alphabet’s Q2 results?
Despite strong overall earnings and revenue, Alphabet’s stock fell by 2.18% in after-hours trading, mainly due to YouTube’s underperformance.
What did Alphabet’s executives say about the Q2 performance?
CEO Sundar Pichai highlighted strong performance in Search and Cloud, while President Ruth Porat emphasized revenue growth and cost management efforts.
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