Alphabet Announces Third Quarter 2024 Results

MOUNTAIN VIEW, Calif. – October 29, 2024 – Alphabet Inc. (NASDAQ: GOOG, GOOGL) today announced financial
results for the quarter ended September 30, 2024.
• Consolidated Alphabet revenues in Q3 2024 increased 15%, or 16% in constant currency, year over year to
$88.3 billion reflecting strong momentum across the business.
• Google Services revenues increased 13% to $76.5 billion, led by strength across Google Search & other,
Google subscriptions, platforms, and devices, and YouTube ads.
• Google Cloud revenues increased 35% to $11.4 billion led by accelerated growth in Google Cloud Platform
(GCP) across AI Infrastructure, Generative AI Solutions, and core GCP products.
• Total operating income increased 34% and operating margin percent expanded by 4.5 percentage points to
32%.
• Net income increased 34% and EPS increased 37% to $2.12.
Sundar Pichai, CEO, said: “The momentum across the company is extraordinary. Our commitment to innovation, as
well as our long-term focus and investment in AI, are paying off with consumers and partners benefiting from our AI
tools.
In Search, our new AI features are expanding what people can search for and how they search for it. In Cloud, our AI
solutions are helping drive deeper product adoption with existing customers, attract new customers and win larger
deals. And YouTube’s total ads and subscription revenues surpassed $50 billion over the past four quarters for the
first time.
We generated strong revenue growth in the quarter, and our ongoing efforts to improve efficiency helped deliver
improved margins. I’m looking forward to driving more advances for consumers, customers and creators globally.”

Q3 2024 Financial Highlights (unaudited)

The following table summarizes our consolidated financial results for the quarters ended September 30, 2023 and
2024 (in millions, except for per share information and percentages).

Quarter Ended September 30,

2023 2024
Revenues $ 76,693 $ 88,268
Change in revenues year over year 11 % 15 %
Change in constant currency revenues year over year(1) 11 % 16 %

Operating income $ 21,343 $ 28,521

Operating margin(2) 28 % 32 %

Other income (expense), net $ (146) $ 3,185

Net income $ 19,689 $ 26,301

Diluted EPS $ 1.55 $ 2.12
(1)
Non-GAAP measure. See the section captioned “Reconciliation from GAAP Revenues to Non-GAAP Constant Currency
Revenues and GAAP Percentage Change in Revenues to Non-GAAP Percentage Change in Constant Currency Revenues”
for more details.
(2)
Operating margin percent expanded by 4.5 percentage points year over year. This reflects, when rounding to one decimal
place, operating margins of 27.8% and 32.3% for the quarters ended September 30, 2023 and 2024, respectively.

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Q3 2024 Supplemental Information (in millions, except for number of employees; unaudited)

Revenues, Traffic Acquisition Costs (TAC), and Number of Employees

Quarter Ended September 30,

2023 2024
Google Search & other $ 44,026 $ 49,385
YouTube ads 7,952 8,921
Google Network 7,669 7,548
Google advertising 59,647 65,854
Google subscriptions, platforms, and devices 8,339 10,656
Google Services total 67,986 76,510
Google Cloud 8,411 11,353
Other Bets 297 388
Hedging gains (losses) (1) 17
Total revenues $ 76,693 $ 88,268

Total TAC $ 12,642 $ 13,719

Number of employees 182,381 181,269

Segment Operating Results

As announced on October 17, 2024, the Gemini app team within Google Services that is developing the direct
consumer interface to our Gemini models will join Google DeepMind. We are currently evaluating the potential effect
the reorganization will have on our segment operating results.

Quarter Ended September 30,

2023 2024
Operating income (loss):
Google Services $ 23,937 $ 30,856
Google Cloud 266 $ 1,947
Other Bets (1,194) $ (1,116)
Alphabet-level activities(1) (1,666) $ (3,166)
Total income from operations $ 21,343 $ 28,521
(1)
In addition to the costs included in Alphabet-level activities, hedging gains (losses) related to revenue were $(1) million and
$17 million for the three months ended September 30, 2023 and 2024, respectively. For the three months ended September
30, 2023 and 2024, Alphabet-level activities included substantially all of the charges related to employee severance and our
office space optimization efforts. During the quarter ended September 30, 2024, we incurred office space charges totaling
$607 million.

Additional Information Relating to the Quarter Ended September 30, 2024 (unaudited)

Dividend Program
Dividend payments to stockholders of Class A, Class B, and Class C shares were $1.2 billion, $173 million, and
$1.1 billion, respectively, totaling $2.5 billion for the three months ended September 30, 2024. On October 29, 2024,
Alphabet announced a cash dividend of $0.20 per share that will be paid on December 16, 2024, to stockholders of
record as of December 9, 2024, on each of the company’s Class A, Class B, and Class C shares.

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Webcast and Conference Call Information
A live audio webcast of our third quarter 2024 earnings release call will be available on YouTube at https://
www.youtube.com/live/wjkf4t8BfLM. The call begins today at 1:30 PM (PT) / 4:30 PM (ET). This press
release, including the reconciliations of certain non-GAAP measures to their nearest comparable GAAP measures,
is also available at http://abc.xyz/investor.
We also provide announcements regarding our financial performance, including SEC filings, investor events, press
and earnings releases, and blogs, on our investor relations website (http://abc.xyz/investor).
We also share Google news and product updates on Google’s Keyword blog at https://www.blog.google/, which may
be of interest or material to our investors.
Forward-Looking Statements
This press release may contain forward-looking statements that involve risks and uncertainties. Actual results may
differ materially from the results predicted, and reported results should not be considered as an indication of future
performance. The potential risks and uncertainties that could cause actual results to differ from the results predicted
include, among others, those risks and uncertainties included under the captions “Risk Factors” and “Management’s
Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for
the year ended December 31, 2023 and our most recent Quarterly Report on Form 10-Q for the quarter ended June
30, 2024, which are on file with the SEC and are available on our investor relations website at http://abc.xyz/investor
and on the SEC website at www.sec.gov. Additional information will also be set forth in our Quarterly Report on
Form 10-Q for the quarter ended September 30, 2024, and may be set forth in other reports and filings we make
with the SEC. All information provided in this release and in the attachments is as of October 29, 2024. Undue
reliance should not be placed on the forward-looking statements in this press release, which are based on
information available to us on the date hereof. We undertake no duty to update this information unless required by
law.
About Non-GAAP Financial Measures
To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP,
we use the following non-GAAP financial measures: free cash flow; constant currency revenues; and percentage
change in constant currency revenues. The presentation of this financial information is not intended to be
considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in
accordance with GAAP.
We use these non-GAAP financial measures for financial and operational decision-making and as a means to
evaluate period-to-period comparisons. We believe that these non-GAAP financial measures provide meaningful
supplemental information regarding our performance and liquidity by excluding certain items that may not be
indicative of our recurring core business operating results, such as our revenues excluding the effect of foreign
exchange rate movements and hedging activities, which are recognized at the consolidated level. We believe that
both management and investors benefit from referring to these non-GAAP financial measures in assessing our
performance and when planning, forecasting, and analyzing future periods. These non-GAAP financial measures
also facilitate management’s internal comparisons to our historical performance and liquidity as well as comparisons
to our competitors’ operating results. We believe these non-GAAP financial measures are useful to investors both
because (1) they allow for greater transparency with respect to key metrics used by management in its financial and
operational decision-making and (2) they are used by our institutional investors and the analyst community to help
them analyze the health of our business.
There are a number of limitations related to the use of non-GAAP financial measures. We compensate for these
limitations by providing specific information regarding the GAAP amounts excluded from these non-GAAP financial
measures and evaluating these non-GAAP financial measures together with their relevant financial measures in
accordance with GAAP.
For more information on these non-GAAP financial measures, please see the sections captioned “Reconciliation
from GAAP Net Cash Provided by Operating Activities to Non-GAAP Free Cash Flow” and “Reconciliation from
GAAP Revenues to Non-GAAP Constant Currency Revenues and GAAP Percentage Change in Revenues to Non-
GAAP Percentage Change in Constant Currency Revenues” included at the end of this release.
Contact

Investor relations Media

[email protected] [email protected]

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 Alphabet Inc.
CONSOLIDATED BALANCE SHEETS
(In millions, except par value per share amounts)

As of As of
December 31, 2023 September 30, 2024
(unaudited)
Assets
Current assets:
Cash and cash equivalents $ 24,048 $ 19,959
Marketable securities 86,868 73,271
Total cash, cash equivalents, and marketable securities 110,916 93,230
Accounts receivable, net 47,964 49,104
Other current assets 12,650 15,207
Total current assets 171,530 157,541
Non-marketable securities 31,008 36,177
Deferred income taxes 12,169 15,915
Property and equipment, net 134,345 161,270
Operating lease assets 14,091 13,561
Goodwill 29,198 31,935
Other non-current assets 10,051 13,867
Total assets $ 402,392 $ 430,266
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable $ 7,493 $ 7,049
Accrued compensation and benefits 15,140 12,908
Accrued expenses and other current liabilities 46,168 46,585
Accrued revenue share 8,876 9,365
Deferred revenue 4,137 4,896
Total current liabilities 81,814 80,803
Long-term debt 13,253 12,297
Deferred revenue, non-current 911 1,015
Income taxes payable, non-current 8,474 8,219
Deferred income taxes 485 706
Operating lease liabilities 12,460 11,654
Other long-term liabilities 1,616 1,453
Total liabilities 119,013 116,147
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.001 par value per share, 100 shares authorized; no
shares issued and outstanding 0 0
Class A, Class B, and Class C stock and additional paid-in capital, $$0.001
par value per share: 300,000 shares authorized (Class A 180,000, Class B
60,000, Class C 60,000); 12,460 (Class A 5,899, Class B 870, Class C 5,691)
and 12,264 (Class A 5,844, Class B 865, Class C 5,555) shares issued and
outstanding 76,534 82,030
Accumulated other comprehensive income (loss) (4,402) (3,228)
Retained earnings 211,247 235,317
Total stockholders’ equity 283,379 314,119
Total liabilities and stockholders’ equity $ 402,392 $ 430,266

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 Alphabet Inc.
CONSOLIDATED STATEMENTS OF INCOME
(In millions, except per share amounts, unaudited)

Quarter Ended September 30, Year to Date September 30,

2023 2024 2023 2024
Revenues $ 76,693 $ 88,268 $ 221,084 $ 253,549
Costs and expenses:
Cost of revenues 33,229 36,474 95,757 105,693
Research and development 11,258 12,447 33,314 36,210
Sales and marketing 6,884 7,227 20,198 20,445
General and administrative 3,979 3,599 11,219 9,783
Total costs and expenses 55,350 59,747 160,488 172,131
Income from operations 21,343 28,521 60,596 81,418
Other income (expense), net (146) 3,185 709 6,154
Income before income taxes 21,197 31,706 61,305 87,572
Provision for income taxes 1,508 5,405 8,197 13,990
Net income $ 19,689 $ 26,301 $ 53,108 $ 73,582

Basic earnings per share $ 1.56 $ 2.14 $ 4.19 $ 5.96

Diluted earnings per share $ 1.55 $ 2.12 $ 4.16 $ 5.90
Number of shares used in basic earnings per share
calculation 12,581 12,290 12,677 12,349
Number of shares used in diluted earnings per share
calculation 12,696 12,419 12,761 12,480

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 Alphabet Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions, unaudited)

Quarter Ended September 30, Year to Date September 30,

2023 2024 2023 2024
Operating activities
Net income $ 19,689 $ 26,301 $ 53,108 $ 73,582
Adjustments:
Depreciation of property and equipment 3,171 3,985 8,630 11,106
Stock-based compensation expense 5,743 5,846 16,801 16,975
Deferred income taxes (1,824) (1,071) (6,093) (3,809)
Loss (gain) on debt and equity securities, net 869 (1,981) 1,294 (2,738)
Other 891 1,407 2,665 2,592
Changes in assets and liabilities, net of effects of
acquisitions:
Accounts receivable, net (2,821) (1,431) (1,315) (1,321)
Income taxes, net(1) 1,872 (1,908) 10,392 (2,797)
Other assets (1,624) (802) (2,883) (2,334)
Accounts payable 223 521 237 (42)
Accrued expenses and other liabilities(2) 3,657 (1,190) (380) (6,366)
Accrued revenue share 103 381 (315) 478
Deferred revenue 707 640 690 860
Net cash provided by operating activities 30,656 30,698 82,831 86,186
Investing activities
Purchases of property and equipment (8,055) (13,061) (21,232) (38,259)
Purchases of marketable securities (13,833) (22,023) (49,422) (65,034)
Maturities and sales of marketable securities 15,593 23,202 52,642 81,779
Purchases of non-marketable securities (663) (1,035) (2,176) (3,234)
Maturities and sales of non-marketable securities 562 127 743 732
Acquisitions, net of cash acquired, and purchases of
intangible assets (126) (2,753) (466) (2,840)
Other investing activities (628) (2,468) (985) (2,500)
Net cash used in investing activities (7,150) (18,011) (20,896) (29,356)
Financing activities
Net payments related to stock-based award activities (2,432) (3,003) (7,157) (9,141)
Repurchases of stock (15,787) (15,291) (45,313) (46,671)
Dividend payments 0 (2,455) 0 (4,921)
Proceeds from issuance of debt, net of costs 1,248 3,819 9,298 8,694
Repayments of debt (1,414) (3,449) (9,621) (8,951)

Proceeds from sale of interest in consolidated entities, net 3 285 8 293

Net cash used in financing activities (18,382) (20,094) (52,785) (60,697)
Effect of exchange rate changes on cash and cash
equivalents (351) 141 (327) (222)

Net increase (decrease) in cash and cash equivalents 4,773 (7,266) 8,823 (4,089)
Cash and cash equivalents at beginning of period 25,929 27,225 21,879 24,048
Cash and cash equivalents at end of period $ 30,702 $ 19,959 $ 30,702 $ 19,959
(1)
The three and nine months periods ended September 30, 2023 included the effect of the IRS payment deferral relief made
available to taxpayers headquartered in designated counties in California.
(2)
The three and nine months periods ended September 30, 2024 included a cash payment of $3.0 billion for the 2017 EC
shopping fine.

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Segment Results
The following table presents our segment revenues and operating income (loss) (in millions; unaudited):

Quarter Ended September 30,

2023 2024
Revenues:
Google Services $ 67,986 $ 76,510
Google Cloud 8,411 11,353
Other Bets 297 388
Hedging gains (losses) (1) 17
Total revenues $ 76,693 $ 88,268
Operating income (loss):
Google Services $ 23,937 $ 30,856
Google Cloud 266 $ 1,947
Other Bets (1,194) $ (1,116)
Alphabet-level activities (1,666) $ (3,166)
Total income from operations $ 21,343 $ 28,521

We report our segment results as Google Services, Google Cloud, and Other Bets:
• Google Services includes products and services such as ads, Android, Chrome, devices, Google Maps,
Google Play, Search, and YouTube. Google Services generates revenues primarily from advertising; fees
received for consumer subscription-based products such as YouTube TV, YouTube Music and Premium,
and NFL Sunday Ticket, as well as Google One; the sale of apps and in-app purchases and devices.
• Google Cloud includes infrastructure and platform services, collaboration tools, and other services for
enterprise customers. Google Cloud generates revenues primarily from consumption-based fees and
subscriptions received for Google Cloud Platform services, Google Workspace communication and
collaboration tools, and other enterprise services.
• Other Bets is a combination of multiple operating segments that are not individually material. Revenues
from Other Bets are generated primarily from the sale of healthcare-related services and internet services.
Certain costs are not allocated to our segments because they represent Alphabet-level activities. These costs
primarily include AI-focused shared R&D activities, including development costs of our general AI models; corporate
initiatives such as our philanthropic activities; corporate shared costs such as certain finance, human resource, and
legal costs, including certain fines and settlements. Charges associated with employee severance and office space
reductions during 2023 and 2024 were also not allocated to our segments. Additionally, hedging gains (losses)
related to revenue are not allocated to our segments.

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Other Income (Expense), Net

The following table presents our other income (expense), net (in millions; unaudited):

Quarter Ended September 30,

2023 2024
Interest income $ 1,066 $ 1,243
Interest expense (116) (54)
Foreign currency exchange gain (loss), net (311) 23
Gain (loss) on debt securities, net (503) 160
Gain (loss) on equity securities, net(1) (366) 1,821
Performance fees 179 29
Income (loss) and impairment from equity method investments, net (215) (107)
Other 120 70
Other income (expense), net $ (146) $ 3,185
(1)
Includes all gains and losses, unrealized and realized, on equity securities. For Q3 2024, the net effect of the gain on equity
securities of $1.8 billion and the $29 million reversal of previously accrued performance fees related to certain investments
increased the provision for income tax, net income, and diluted EPS by $389 million, $1.5 billion, and $0.12, respectively.
Fluctuations in the value of our investments may be affected by market dynamics and other factors and could significantly
contribute to the volatility of OI&E in future periods.

Reconciliation from GAAP Net Cash Provided by Operating Activities to Non-GAAP Free Cash Flow (in
millions; unaudited):

We provide non-GAAP free cash flow because it is a liquidity measure that provides useful information to
management and investors about the amount of cash generated by the business that can be used for strategic
opportunities, including investing in our business and acquisitions, and to strengthen our balance sheet.

Quarter Ended
September 30, 2024
Net cash provided by operating activities $ 30,698
Less: purchases of property and equipment (13,061)
Free cash flow $ 17,637

Free cash flow: We define free cash flow as net cash provided by operating activities less capital expenditures.

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Reconciliation from GAAP Revenues to Non-GAAP Constant Currency Revenues and GAAP Percentage
Change in Revenues to Non-GAAP Percentage Change in Constant Currency Revenues (in millions, except
percentages; unaudited):

We provide non-GAAP constant currency revenues (“constant currency revenues”) and non-GAAP percentage change
in constant currency revenues (“percentage change in constant currency revenues”), because they facilitate the
comparison of current results to historic performance by excluding the effect of foreign exchange rate movements (“FX
Effect”) as well as hedging activities, which are recognized at the consolidated level, as they are not indicative of our
core operating results.
Non-GAAP constant currency revenues is defined as revenues excluding the effect of foreign exchange rate
movements and hedging activities and is calculated by translating current period revenues using prior period exchange
rates and excluding any hedging effect recognized in the current period. We calculate the percentage change in
constant currency revenues by comparing constant currency revenues to the prior year comparable period revenues,
excluding any hedging effect recognized in the prior period.
Revenues by Geography
Comparison from the Quarter Ended September 30, 2023 to the Quarter Ended September 30, 2024

Quarter Ended September 30, 2024

% Change from Prior Period
Quarter Ended September
30, Constant Less Constant
Less FX Currency As Hedging Less FX Currency
2023 2024 Effect Revenues Reported Effect Effect Revenues
United States $ 36,354 $ 43,139 $ 0 $ 43,139 19 % 0% 19 %
EMEA 22,661 25,472 (146) 25,618 12 % (1)% 13 %
APAC 13,126 14,547 (285) 14,832 11 % (2)% 13 %
Other Americas 4,553 5,093 (586) 5,679 12 % (13)% 25 %
Revenues, excluding hedging effect 76,694 88,251 (1,017) 89,268 15 % (1)% 16 %
Hedging gains (losses) (1) 17
Total revenues(1) $ 76,693 $ 88,268 $ 89,268 15 % 0% (1)% 16 %

(1)
Total constant currency revenues of $89.3 billion for the quarter ended September 30, 2024 increased $12.6 billion compared to $76.7 billion
in revenues, excluding hedging effect for the quarter ended September 30, 2023.

Comparison from the Quarter Ended June 30, 2024 to the Quarter Ended September 30, 2024

Quarter Ended September 30, 2024

% Change from Prior Period
Quarter Ended
Constant Less Constant
June 30, September 30, Less FX Currency As Hedging Less FX Currency
2024 2024 Effect Revenues Reported Effect Effect Revenues
United States $ 41,196 $ 43,139 $ 0 $ 43,139 5% 0% 5%
EMEA 24,683 25,472 228 25,244 3% 1% 2%
APAC 13,823 14,547 96 14,451 5% 0% 5%
Other Americas 4,938 5,093 (178) 5,271 3% (4)% 7%
Revenues, excluding hedging effect 84,640 88,251 146 88,105 4% 0% 4%
Hedging gains (losses) 102 17
Total revenues(1) $ 84,742 $ 88,268 $ 88,105 4% 0% 0% 4%

(1)
Total constant currency revenues of $88.1 billion for the quarter ended September 30, 2024 increased $3.5 billion compared to $84.6 billion in
revenues, excluding hedging effect for the quarter ended June 30, 2024.

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Total Revenues — Prior Year Comparative Periods

Comparison from the Quarter Ended September 30, 2022 to the Quarter Ended September 30, 2023
Quarter Ended September 30, 2023
% Change from Prior Period
Quarter Ended
September 30, Constant Less Constant
Less FX Currency As Hedging Less FX Currency
2022 2023 Effect Revenues Reported Effect Effect Revenues
Revenues excluding hedging effect $ 68,454 $ 76,694 $ 427 $ 76,267 12 % 1% 11 %
Hedging gains (losses) $ 638 $ (1)
Total revenues $ 69,092 $ 76,693 $ 76,267 11 % (1)% 1% 11 %

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