© Unsplash/Pawel Czerwinski
Since the surprise release of ChatGPT at the end of 2022, excitement has reigned within Alphabet, Google's parent company. But the Tech giant was smiling this Thursday, April 25 during the presentation of the results for the first quarter of 2024.
The reasons for Google's success
And for good reason, the group managed to generate a very solid net profit of 23.7 billion dollars during the first three months of the year, an increase of 57% compared to the end of 2023. This good news is reflected in the turnover: 80.5 billion dollars (+13 .5% compared to the previous quarter). Enough to reassure investors who welcomed this report by causing the company's shares to rise by 15% this Thursday.
In detail, the advertising bonanza remains at the heart of the Mountain View firm's business. Sales from this division thus brought in $61.7 billion within the various subsidiaries (+15%).
In this area, YouTube is a good student. The platform recorded $8.1 billion in advertising sales for the first quarter of 2024, the highest figure to date (+21% compared to the previous year). The group did not provide figures for YouTube Premium and YouTube TV, two activities which generated $15 billion in revenue in 2023. The cloud is Alphabet's other cash cow with $9.6 billion. dollars collected (+29%).
According to the Wall Street Journal, these good figures were also obtained by the policy of cost reduction and layoffs, decided by management. Google thus has 180,000 full-time employees, or 10,000 fewer employees than last year at the same period.
AI at the heart of the battle
This presentation also allowed the Tech giant to address the subject of AI. An employee of this division wanted to explain to our colleagues at Business Insider that “Gemini is making astonishing progress. We are pleasantly surprised”.
Sundar Pichai, the CEO of the company also showed his optimism by specifying that the transition to AI is a “unique opportunity of its kind&# 8221; for Google. Let us remember that a merciless struggle is underway on this aspect between the large technological companies.
This week, Mark Zuckerberg also announced massive investments by Meta in this technology. He also said that it would take years to find the path to profitability, which displeased shareholders and caused the company's stock to fall on the stock market.
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