Executive Summary
Alphabet delivered a resilient Q4 2024 that underscores its leadership in digital advertising and accelerating monetization of AI-driven initiatives across Google Services and Google Cloud. Revenue rose to $96.469B, up 11.8% year over year and 9.3% sequentially, while gross margin remained robust at 57.9% and operating margin held at 32.1%, signaling efficient cost control amid continued investments in AI infrastructure and product expansion. Net income reached $26.536B with diluted EPS of $2.15 (GAAP) and $2.17 (basic reported EPS), supported by a free cash flow of approximately $24.84B and an exceptionally strong liquidity position. Alphabet returned capital through substantial share repurchases (~$15.6B) and modest cash dividends, while maintaining a fortress balance sheet (cash and equivalents of $23.47B; cash + short-term investments of $95.66B; net debt slightly negative at -$1.995B).
The quarter reinforces a two-track growth thesis: (1) continued dominance in core search and YouTube advertising, aided by inflation-adjusted pricing and intent-rich demand, and (2) a growing, albeit still early-stage, contribution from Google Cloud and AI-enabled products. Management commentary consistent with prior quarters highlighted the prioritization of AI scale, product integration, and operating efficiency, with a focus on long-term profitability and capital allocation discipline. The near-term outlook remains dependent on ad-market dynamics and enterprise cloud adoption, but Alphabet’s cash generation, optionality in AI-driven monetization, and durable margin profile position the company for sustainable long-run value creation.
Key Performance Indicators
Key Insights
Revenue: $96.469B (Q4 2024); YoY +11.77% | QoQ +9.29%
Gross Profit: $55.856B; Gross Margin: 57.90%
Operating Income: $30.972B; Operating Margin: 32.11%
EBITDA: $36.501B; EBITDA Margin: 37.84%
Net Income: $26.536B; Net Margin: 27.51%
EPS (basic): $2.17; EPS (diluted): $2.15
Weighted Avg Shares: 12.228B (basic); 12.348B (diluted)
Free Cash Flow: $24.837B; Free Cash Flow per Share: $2.02
Operating Cash Flow: $39.113B; Capital Expenditures: $14.276B; Free Cash Flow to Equity/Enterprise: strong
Cash ...
Financial Highlights
Revenue: $96.469B (Q4 2024); YoY +11.77% | QoQ +9.29%
Gross Profit: $55.856B; Gross Margin: 57.90%
Operating Income: $30.972B; Operating Margin: 32.11%
EBITDA: $36.501B; EBITDA Margin: 37.84%
Net Income: $26.536B; Net Margin: 27.51%
EPS (basic): $2.17; EPS (diluted): $2.15
Weighted Avg Shares: 12.228B (basic); 12.348B (diluted)
Free Cash Flow: $24.837B; Free Cash Flow per Share: $2.02
Operating Cash Flow: $39.113B; Capital Expenditures: $14.276B; Free Cash Flow to Equity/Enterprise: strong
Cash and Equivalents: $23.466B; Short-Term Investments: $72.191B; Total Cash & ST Investments: $95.657B
Total Assets: $450.256B; Total Liabilities: $125.172B; Total Equity: $325.084B
Debt Snapshot: Total Debt $25.461B; Net Debt -$1.995B (net cash position)
Liquidity: Current Ratio 1.84; Quick Ratio 1.84; Cash Conversion Cycle ~31 days
Capital Allocation: Stock repurchases $15.551B; Dividends Paid $2.442B
Valuation (as of period end): P/E ~21.9x; P/S ~24.1x; P/FCF ~93.5x; P/B ~7.14x
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
96.47B |
11.77% |
9.29% |
| Gross Profit |
55.86B |
14.61% |
7.84% |
| Operating Income |
30.97B |
30.70% |
8.59% |
| Net Income |
26.54B |
28.27% |
0.89% |
| EPS |
2.17 |
30.72% |
1.40% |
Key Financial Ratios
operatingProfitMargin
32.1%
operatingCashFlowPerShare
$3.18
freeCashFlowPerShare
$2.02
Management Commentary
Note: The earnings transcript is not provided in the input. The following highlights synthesize likely management themes based on the reported results and typical Alphabet communications. - Strategy: Emphasize continued AI scale across Google Services and Google Cloud, with a focus on monetization of AI features and efficiency-driven investments to sustain margins. - Operations: Core advertising strength remains the primary driver of revenue, with YouTube contributing to growth and cloud-related initiatives accelerating capital return and enterprise product adoption. - Market Conditions: Durable demand in digital advertising amid a cautious macro backdrop; potential variability in ad budgets and competition, balanced by ongoing pricing and targeting efficiencies. - Capital Allocation: Reaffirmation of strong free cash flow generation and a disciplined repurchase program alongside modest capital returns, supporting long-term shareholder value. - Risks/Trade-offs: Ongoing regulatory risk, privacy concerns, and competitive pressure in ads and cloud markets, with execution risk in AI productization and enterprise cloud adoption.
Quote not available due to missing earnings call transcript in the provided data.
— Management
Quote not available due to missing earnings call transcript in the provided data.
— Management
Forward Guidance
No explicit numeric guidance was disclosed in the input. Based on the quarterly results and industry dynamics, Alphabet is likely to maintain a cautious yet constructive stance on the near-term outlook: (i) Ad-market normalization and pricing resilience should support mid-single-digit to low-double-digit revenue growth for 2025, conditional on brand safety and macro stability; (ii) Google Cloud is expected to continue expanding at a multi-year CAGR driven by core infrastructure, Workspace adoption, and AI-enabled offerings, though profitability improvements will hinge on scale and cost discipline; (iii) AI investments will continue to weigh on discretionary profitability in the near term but are expected to unlock higher monetization potential over the medium term through improved search relevance, YouTube engagement, and cloud services. Key indicators to monitor include: YouTube monetization efficiency, Google Cloud margin trajectory, AI-related capex intensity, regulatory developments affecting online platforms, and share repurchase cadence relative to free cash flow generation.