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Google Parent Alphabet Thrives on AI, Cloud Services to Post Strong Q4 2024 and 2025 Outlook
By News Service - Feb 04, 2025, 10:29 PM ET
Last Updated - Feb 04, 2025, 10:30 PM EST
Company announces robust increase in revenues and earnings per share
• $350 billion $350 billion revenue for 2024, up 14% from the previous year
• $112.4 billion operating income for 2024
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• 32% annual operating margin, up from 27%
• $2.4 billion dividend payouts announced for the quarter
Alphabet Inc. [NASDAQ: GOOG, GOOGL], the parent company of Google YouTube on Tuesday announced $350.2 billion in consolidated revenue for 2024 fiscal year ended December 31, up from $307.39 billon in the previous year. In a filing with the SEC, the company attributed the annual growth to a strong performance, particularly in Google Cloud and AI segments.
The company’s quarterly performance was also impressive with the total revenues jumping by about 12 percent to $96.47 billion from $86.31 billion in the same quarter of the previous year.
Revenue and Profit Surge
The operating income of the company grew to $112.39 billion from $84.1 billion, fueled by Google Search, other advertising services, and YouTube. In Q4 2024, the company’s operating income shot up to $30.97 billion from $23.7 billion a year ago. The operating margins for the year and Q4 were 32 percent, compared to an identical 27 percent for the previous year and the last quarter of the previous year.
Google Cloud revenue increased by an impressive 30 percent to cross $12 billion, as Google Cloud Platform products and enhanced AI infrastructure, alongside generative AI solutions turned in a strong performance.
The earnings per share increased to $8.04 for the full year from $5.80 in the previous year, with the quarterly EPS expanding to $2.15 in Q4 from $1.64 in the same quarter of the previous year.
Strategic Investments and AI Innovation
Sundar Pichai, CEO of Alphabet, highlighted the impact of AI on the company’s success. "Q4 was a strong quarter driven by our leadership in AI and momentum across the business," Pichai noted. He elaborated on the rapid development and deployment of new products and AI models, which have notably increased user engagement in Search and Cloud services. Pichai also underscored the strategic focus on AI, with plans to invest approximately $75 billion in capital expenditures in 2025 to further fuel innovation and efficiency.
Outlook and Growth Trajectory
Looking ahead, Alphabet remains poised for continued growth with a strong emphasis on expanding its AI capabilities and enhancing its cloud infrastructure. The firm's ambitious investment plans indicate a robust outlook for innovation, aiming to sustain its leadership in the technology sector and deliver increased value to its users and shareholders alike.
With a strategic focus on advanced technology and market expansion, Alphabet's latest financial results reflect not only past achievements but also a promising future for one of the tech industry's giants.
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