Alphabet exceeds Q3 expectations with record $88.3 billion revenue, driven by core Google ads

Alphabet’s impressive Q3 earnings underscore Google’s dominance in digital advertising, fuelled by AI innovation and expanding YouTube reach, as it faces competitive and regulatory pressures.

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  • Storyboard18,
| October 30, 2024 , 10:17 am
Google India's ad revenue grew by 11% to Rs 31,221 crore in FY24 from Rs 28,040 crore the previous year.
Google India's ad revenue grew by 11% to Rs 31,221 crore in FY24 from Rs 28,040 crore the previous year.

Alphabet Inc., the parent company of Google, exceeded Wall Street expectations in its Q3 2024 earnings report, achieving a record-breaking revenue of $88.3 billion, a 15% increase compared to the same period last year.

The bulk of this revenue was driven by Google’s core advertising business, contributing an impressive $65.9 billion to the total. The company also posted a net income of $26.3 billion, with earnings per share (EPS) of $2.12, both metrics surpassing analyst estimates.

YouTube, a critical component of Alphabet’s growth strategy, reported ad revenue of $8.92 billion, underscoring Google’s expanding influence in the video platform space.

CEO Sundar Pichai emphasized Alphabet’s advancements in artificial intelligence (AI): “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 AU tools.”

This development is particularly relevant within India’s booming digital advertising market, where Google’s latest AI-powered ad solutions for Search and Cloud signal its stronghold. As India’s digital advertising landscape intensifies, Google’s focus on enhancing user engagement through AI offers new pathways for brands eager to leverage predictive insights and data-driven campaigns.

Alphabet’s financial performance has positively impacted its stock value, reflecting market confidence in Google’s long-term AI vision. However, the company faces intensifying competition from industry rivals like Meta and scrutiny from a high-profile antitrust lawsuit in the U.S. Despite these challenges, Google’s robust growth highlights its dominance in search and programmatic advertising, particularly in India, where advertisers are increasingly seeking optimized returns on ad spend within a rapidly digitalizing economy.

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