Alphabet, the parent company of Google, today reported its fourth-quarter earnings for 2024 and had good growth across its wide portfolio of businesses.
Despite uncertainties in the global economy, Alphabet was able to turn in strong financial results—revenue reached $96.47 billion, representing a 12% increase compared to the same period last year. During the quarter, net income for the company went up over 28% to $26.54 billion.
Alphabet's CEO Sundar Pichai said the quarter reflected its leading position in AI, adding to growth momentum in the businesses. "We are building, testing, and launching products and models faster than ever, and making significant progress in compute and driving efficiencies," he said.
Q4 was a strong quarter driven by our leadership in AI and momentum across the business... In Search, advances like AI Overviews and Circle to Search are increasing user engagement. Our AI-powered Google Cloud portfolio is seeing stronger customer demand, and YouTube continues to be the leader in streaming watchtime and podcasts. Together, Cloud and YouTube exited 2024 at an annual revenue run rate of $110 billion.
The search giant's core businesses, including Google Search and YouTube, continued to deliver strong results. Advertising revenue rose to $72.46 billion from $65.52 billion a year ago. YouTube also saw an increase in ad revenues, reaching $10.47 billion from $9.2 billion in the same quarter last year.
Revenue from Alphabet's cloud computing business, Google Cloud, arrived at $11.96 billion, representing a 30% increase over last year. Revenue arrived below expectations that had called for $12.19 billion.
The Other Bets segment, including projects such as Verily and Waymo, continued to be a drag on Alphabet's overall performance, recording revenue of $400 million from $657 million in the same quarter of 2023.
Looking ahead, the company plans to invest $75 billion in capital expenditures for 2025, above analysts' estimates on Wall Street at $58.84 billion.
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