Alphabet Q4 2024 Earnings Report

Key Takeaways

Alphabet delivered a strong Q4 2024, with revenues growing 12% year-over-year to $96.5 billion, driven by strength in Google Services and Google Cloud. Net income rose 28%, and EPS increased 31% to $2.15. Operating income surged 31%, with an improved operating margin of 32%.

Total Revenue

$96.5B

Previous year: $86.3B

+11.8%

EPS

$2.15

Previous year: $1.64

+31.1%

Traffic Acquisition Costs

$14.8B

Gross Profit

$55.9B

Previous year: $48.7B

+14.6%

Cash and Equivalents

$95.7B

Previous year: $111B

-13.8%

Free Cash Flow

$24.8B

Previous year: $7.9B

+214.6%

Total Assets

$450B

Previous year: $402B

+11.9%

Alphabet Revenue

Alphabet EPS

Alphabet Revenue by Segment

Alphabet Revenue by Geographic Location

Forward Guidance

Alphabet expects continued growth in AI-driven services, cloud computing, and advertising. Capital expenditures are projected to reach $75 billion in 2025 to support AI and infrastructure expansion.

Positive Outlook

Strong AI-driven growth across Google Search and YouTube.
Google Cloud momentum with increasing enterprise adoption.
Expansion of AI-based ad offerings leading to higher engagement.
Operational efficiency improvements driving higher margins.
Increased investment in AI and compute infrastructure for long-term growth.

Challenges Ahead

Potential macroeconomic headwinds affecting ad revenue growth.
Increased regulatory scrutiny on AI and digital advertising.
High capital expenditure requirements may impact near-term cash flow.
Competition from other cloud providers and AI-driven platforms.
Declining revenue from 'Other Bets' segment indicating challenges in diversification.

Revenue & Expenses

Visualization of income flow from segment revenue to net income