Executive Summary
Alphabet reported a strong QQ3 2024 performance with revenue of $88.27B, up 15.1% year over year and 4.2% quarter over quarter, supported by resilient advertising demand and meaningful Google Cloud momentum. The company delivered a robust gross margin of 58.68% and an operating margin of 32.31%, culminating in net income of $26.30B and diluted EPS of $2.12-$2.14 for the quarter. Free cash flow reached $17.64B, underscoring the company’s capacity to fund ongoing AI initiatives, capex, and aggressive capital return activity, including $15.29B of common stock repurchases. Operating cash flow totaled $30.70B, while capex was $13.06B, highlighting continued investment in scalable platforms and infrastructure.
Key Performance Indicators
Key Insights
Revenue: $88.27B (+15.1% YoY; +4.2% QoQ) | Gross Profit: $51.79B (Gross Margin 58.68%; YoY +19.2%; QoQ +5.2%) | Operating Income: $28.52B (Operating Margin 32.31%; YoY +33.6%; QoQ +4.0%) | Net Income: $26.30B (Net Margin 29.80%; YoY +33.6%; QoQ +11.4%) | EPS: $2.14 (Diluted $2.12; YoY +36.3%; QoQ +12.0%) | Operating Cash Flow: $30.70B | Free Cash Flow: $17.64B | Capex: $13.06B | Free Cash Flow per Share: $1.44 | Cash & Short-Term Investments: $93.23B | Total Debt: $26.92B | Net Debt: $6.96B ...
Financial Highlights
Revenue: $88.27B (+15.1% YoY; +4.2% QoQ) | Gross Profit: $51.79B (Gross Margin 58.68%; YoY +19.2%; QoQ +5.2%) | Operating Income: $28.52B (Operating Margin 32.31%; YoY +33.6%; QoQ +4.0%) | Net Income: $26.30B (Net Margin 29.80%; YoY +33.6%; QoQ +11.4%) | EPS: $2.14 (Diluted $2.12; YoY +36.3%; QoQ +12.0%) | Operating Cash Flow: $30.70B | Free Cash Flow: $17.64B | Capex: $13.06B | Free Cash Flow per Share: $1.44 | Cash & Short-Term Investments: $93.23B | Total Debt: $26.92B | Net Debt: $6.96B | Cash at End of Period: $19.96B | Total Assets: $430.27B | Total Equity: $314.12B | Shares Outstanding (avg): 12.29B; EPS basic/diluted: $2.14/$2.12
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
88.27B |
15.09% |
4.16% |
| Gross Profit |
51.79B |
19.17% |
5.20% |
| Operating Income |
28.52B |
33.63% |
4.00% |
| Net Income |
26.30B |
33.58% |
11.36% |
| EPS |
2.14 |
36.31% |
12.04% |
Key Financial Ratios
operatingProfitMargin
32.3%
operatingCashFlowPerShare
$2.5
freeCashFlowPerShare
$1.44
dividendPayoutRatio
9.33%
Management Commentary
No earnings call transcript data were provided in the source materials. Consequently, concrete management quotes or theme-by-theme transcript highlights could not be extracted. If a transcript becomes available, we will extract themes such as strategy execution on Ads, Cloud AI deployment, YouTube monetization, and capital allocation (buybacks) with direct quotes and context.
Forward Guidance
Alphabet traditionally provides qualitative guidance and strategic direction rather than explicit quarterly targets. The QQ3 2024 results reinforce a durable, two-pillar model: (1) Ads leadership with Google Search and YouTube remaining the core growth engine, supported by ongoing monetization improvements and user engagement, and (2) Google Cloud acceleration tied to AI-enabled enterprise offerings, data analytics, and infrastructure. Free cash flow generation of $17.64B in the quarter funds continued capital returns (e.g., $15.29B of stock repurchases) and sustained capex in cloud infrastructure and AI initiatives. Management commentary on AI-enabled products and cloud services is likely to emphasize scalable, enterprise-grade AI solutions and better monetization across platforms as a key driver of longer-term margin and growth. Watching points for investors include: how Google Cloud contributes to revenue growth vs. ads, progression of YouTube monetization (including Shorts and ads on video content), and the pace of AI-related cost synergies and compute efficiency. Risks to monitor include ad-market cyclicality, regulatory developments, competition from AWS/Azure and Meta in ads and cloud, and potential cost inflation from AI compute and data center expansion.