Google is a hit in the second quarter: the 2 activities that boosted its revenues

© Unsplash/Greg Bulla

Alphabet, the parent company of Google, has just presented its financial results for the second quarter of 2024. And the least we can say is that the company was a hit. Indeed, between April and June, Alphabet generated $84.742 billion. This quarterly revenue exceeds analysts' expectations, and corresponds to an increase of 14% year-on-year (compared to the same period in 2023). As for net profit, it was $23.6 billion, compared to $18.4 billion for the same period in 2023.

“Our strong performance this quarter highlights the continued strength of Search and the momentum of Cloud. We innovate at every level of the AI ​​stack. Our long-standing infrastructure leadership and in-house research teams position us well as technology evolves and we pursue the many opportunities ahead,” said Sundar. Pichai, the CEO of Alphabet.

Despite a drop in revenue generated by YouTube ads, Google's total advertising revenue was up from $58.143 billion in the second quarter of 2023 to $64.616 billion in the second quarter of 2024. Cloud business, which is also an important indicator for investors, also performed well . Indeed, it generated more than $10 billion in the second quarter, compared to $8 billion for the same period in 2024. And according to CNBC, for the first time, this Cloud business exceeded $1 billion in operating profit in one quarter. Otherwise, revenues generated by different subscriptions and Google Pixel devices were also increasing.

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Google invests again in autonomous cars

As you may already know, Google has many futuristic projects which, at the moment, are generating losses. And among these projects, there is Waymo, formerly Google Car, which specializes in autonomous cars. Ruth Porat, Alphabet's chief financial officer, announced a new investment of $5 billion in this subsidiary. “This new round of financing, which is consistent with recent annual investment levels, will enable Waymo to continue building the global leader in autonomous driving technology”, she explained. Waymo has, on numerous occasions, been congratulated by the press for its cautious but effective approach to the development of autonomous driving. Currently, Waymo already offers an autonomous VTC service in a few American cities.

In the second quarter, Alphabet's other bets, which include the Waymo project, generated revenue of $1.1 billion. On the other hand, these activities caused losses of $2.287 billion (up from $1.198 billion in losses in the second quarter of 2023). Otherwise, in the presentation of its results, Alphabet recalls that it continues to invest in artificial intelligence, and to rely on this technology to improve its products. “As we announced on April 18, 2024, we have consolidated the teams dedicated to creating AI models within Google Research and Google DeepMind to accelerate our progress in the field of AI”, the press release said.

• Google has just presented its results for the second quarter of 2024
• Its quarterly revenue is up 14%, driven by advertising (notably on the search engine) and the Cloud activity, which exceeded $1 billion in quarterly profit for the first time
• On the other hand, revenue generated by YouTube ads was down
• Otherwise, Google will invest $5 billion in Waymo, its subsidiary specializing in autonomous cars

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