Alphabet Announces Second Quarter 2024 Results

MOUNTAIN VIEW, Calif. – July 23, 2024 – Alphabet Inc. (NASDAQ: GOOG, GOOGL) today announced financial
results for the quarter ended June 30, 2024.
Sundar Pichai, CEO, said: “Our strong performance this quarter highlights ongoing strength in Search and
momentum in Cloud. We are innovating at every layer of the AI stack. Our longstanding infrastructure leadership and
in-house research teams position us well as technology evolves and as we pursue the many opportunities ahead.”
Ruth Porat, President and Chief Investment Officer; CFO said: “We delivered revenues of $85 billion, up 14% year-
on-year driven by Search as well as Cloud, which for the first time exceeded $10 billion in quarterly revenues and
$1 billion in operating profit. As we invest to support our highest growth opportunities, we remain committed to
creating investment capacity with our ongoing work to durably re-engineer our cost base.”

Q2 2024 Financial Highlights (unaudited)

The following table summarizes our consolidated financial results for the quarters ended June 30, 2023 and 2024 (in
millions, except for per share information and percentages).

Quarter Ended June 30,

2023 2024
Revenues $ 74,604 $ 84,742
Change in revenues year over year 7% 14 %
Change in constant currency revenues year over year(1) 9% 15 %

Operating income $ 21,838 $ 27,425

Operating margin 29 % 32 %

Other income (expense), net $ 65 $ 126

Net income $ 18,368 $ 23,619

Diluted EPS $ 1.44 $ 1.89
(1)
Non-GAAP measure. See the section captioned “Reconciliation from GAAP Revenues to Non-GAAP Constant Currency
Revenues and GAAP Percentage Change in Revenues to Non-GAAP Percentage Change in Constant Currency Revenues”
for more details.
Q2 2024 Supplemental Information (in millions, except for number of employees; unaudited)

Revenues, Traffic Acquisition Costs (TAC), and Number of Employees

Quarter Ended June 30,

2023 2024
Google Search & other $ 42,628 $ 48,509
YouTube ads 7,665 8,663
Google Network 7,850 7,444
Google advertising 58,143 64,616
Google subscriptions, platforms, and devices 8,142 9,312
Google Services total 66,285 73,928
Google Cloud 8,031 10,347
Other Bets 285 365
Hedging gains (losses) 3 102
Total revenues $ 74,604 $ 84,742

Total TAC $ 12,537 $ 13,387

Number of employees 181,798 179,582

Segment Operating Results

As announced on April 18, 2024, we further consolidated teams that focus on building AI models across Google
Research and Google DeepMind to further accelerate our progress in AI. AI model development teams previously
under Google Research in our Google Services segment are included as part of Google DeepMind, reported within
Alphabet-level activities, prospectively beginning in the second quarter of 2024.

Quarter Ended June 30,

2023 2024
Operating income (loss):
Google Services $ 23,454 $ 29,674
Google Cloud 395 $ 1,172
Other Bets (813) $ (1,134)
Alphabet-level activities(1) (1,198) $ (2,287)
Total income from operations $ 21,838 $ 27,425
(1)
In addition to the costs included in Alphabet-level activities, hedging gains (losses) related to revenue were $3 million and
$102 million for the three months ended June 30, 2023 and 2024, respectively.

Additional Information Relating to the Quarter Ended June 30, 2024 (unaudited)

Dividend Program
Dividend payments to stockholders of Class A, Class B, and Class C shares were $1.2 billion, $173 million, and $1.1
billion, respectively, totaling $2.5 billion for the three months ended June 30, 2024. On July 23, 2024, Alphabet
announced a cash dividend of $0.20 per share that will be paid on September 16, 2024, to stockholders of record as
of September 9, 2024, on each of the company’s Class A, Class B, and Class C shares.

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Webcast and Conference Call Information
A live audio webcast of our second quarter 2024 earnings release call will be available on YouTube at https://
www.youtube.com/live/r9ylamQmNBU. The call begins today at 1:30 PM (PT) / 4:30 PM (ET). This press
release, including the reconciliations of certain non-GAAP measures to their nearest comparable GAAP measures,
is also available at http://abc.xyz/investor.
We also provide announcements regarding our financial performance, including SEC filings, investor events, press
and earnings releases, and blogs, on our investor relations website (http://abc.xyz/investor).
We also share Google news and product updates on Google’s Keyword blog at https://www.blog.google/, which may
be of interest or material to our investors.
Forward-Looking Statements
This press release may contain forward-looking statements that involve risks and uncertainties. Actual results may
differ materially from the results predicted, and reported results should not be considered as an indication of future
performance. The potential risks and uncertainties that could cause actual results to differ from the results predicted
include, among others, those risks and uncertainties included under the captions “Risk Factors” and “Management’s
Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for
the year ended December 31, 2023 and our most recent Quarterly Report on Form 10-Q for the quarter ended
March 31, 2024, which are on file with the SEC and are available on our investor relations website at http://abc.xyz/
investor and on the SEC website at www.sec.gov. Additional information will also be set forth in our Quarterly Report
on Form 10-Q for the quarter ended June 30, 2024, and may be set forth in other reports and filings we make with
the SEC. All information provided in this release and in the attachments is as of July 23, 2024. Undue reliance
should not be placed on the forward-looking statements in this press release, which are based on information
available to us on the date hereof. We undertake no duty to update this information unless required by law.
About Non-GAAP Financial Measures
To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP,
we use the following non-GAAP financial measures: free cash flow; constant currency revenues; and percentage
change in constant currency revenues. The presentation of this financial information is not intended to be
considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in
accordance with GAAP.
We use these non-GAAP financial measures for financial and operational decision-making and as a means to
evaluate period-to-period comparisons. We believe that these non-GAAP financial measures provide meaningful
supplemental information regarding our performance and liquidity by excluding certain items that may not be
indicative of our recurring core business operating results, such as our revenues excluding the effect of foreign
exchange rate movements and hedging activities, which are recognized at the consolidated level. We believe that
both management and investors benefit from referring to these non-GAAP financial measures in assessing our
performance and when planning, forecasting, and analyzing future periods. These non-GAAP financial measures
also facilitate management’s internal comparisons to our historical performance and liquidity as well as comparisons
to our competitors’ operating results. We believe these non-GAAP financial measures are useful to investors both
because (1) they allow for greater transparency with respect to key metrics used by management in its financial and
operational decision-making and (2) they are used by our institutional investors and the analyst community to help
them analyze the health of our business.
There are a number of limitations related to the use of non-GAAP financial measures. We compensate for these
limitations by providing specific information regarding the GAAP amounts excluded from these non-GAAP financial
measures and evaluating these non-GAAP financial measures together with their relevant financial measures in
accordance with GAAP.
For more information on these non-GAAP financial measures, please see the sections captioned “Reconciliation
from GAAP Net Cash Provided by Operating Activities to Non-GAAP Free Cash Flow” and “Reconciliation from
GAAP Revenues to Non-GAAP Constant Currency Revenues and GAAP Percentage Change in Revenues to Non-
GAAP Percentage Change in Constant Currency Revenues” included at the end of this release.
Contact

Investor relations Media

[email protected] [email protected]

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 Alphabet Inc.
CONSOLIDATED BALANCE SHEETS
(In millions, except par value per share amounts)

As of December 31, As of June 30,

2023 2024
(unaudited)
Assets
Current assets:
Cash and cash equivalents $ 24,048 $ 27,225
Marketable securities 86,868 73,500
Total cash, cash equivalents, and marketable securities 110,916 100,725
Accounts receivable, net 47,964 47,087
Other current assets 12,650 14,183
Total current assets 171,530 161,995
Non-marketable securities 31,008 34,172
Deferred income taxes 12,169 14,958
Property and equipment, net 134,345 151,155
Operating lease assets 14,091 13,606
Goodwill 29,198 29,185
Other non-current assets 10,051 9,699
Total assets $ 402,392 $ 414,770
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable $ 7,493 $ 6,092
Accrued compensation and benefits 15,140 11,373
Accrued expenses and other current liabilities 46,168 47,298
Accrued revenue share 8,876 8,899
Deferred revenue 4,137 4,251
Total current liabilities 81,814 77,913
Long-term debt 13,253 13,238
Deferred revenue, non-current 911 985
Income taxes payable, non-current 8,474 7,703
Deferred income taxes 485 717
Operating lease liabilities 12,460 11,708
Other long-term liabilities 1,616 1,753
Total liabilities 119,013 114,017
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.001 par value per share, 100 shares authorized; no shares
issued and outstanding 0 0
Class A, Class B, and Class C stock and additional paid-in capital, $$0.001 par
value per share: 300,000 shares authorized (Class A 180,000, Class B 60,000,
Class C 60,000); 12,460 (Class A 5,899, Class B 870, Class C 5,691) and 12,322
(Class A 5,860, Class B 866, Class C 5,596) shares issued and outstanding 76,534 79,732
Accumulated other comprehensive income (loss) (4,402) (5,012)
Retained earnings 211,247 226,033
Total stockholders’ equity 283,379 300,753
Total liabilities and stockholders’ equity $ 402,392 $ 414,770

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 Alphabet Inc.
CONSOLIDATED STATEMENTS OF INCOME
(In millions, except per share amounts, unaudited)

Quarter Ended June 30, Year to Date June 30,

2023 2024 2023 2024
Revenues $ 74,604 $ 84,742 $ 144,391 $ 165,281
Costs and expenses:
Cost of revenues 31,916 35,507 62,528 69,219
Research and development 10,588 11,860 22,056 23,763
Sales and marketing 6,781 6,792 13,314 13,218
General and administrative 3,481 3,158 7,240 6,184
Total costs and expenses 52,766 57,317 105,138 112,384
Income from operations 21,838 27,425 39,253 52,897
Other income (expense), net 65 126 855 2,969
Income before income taxes 21,903 27,551 40,108 55,866
Provision for income taxes 3,535 3,932 6,689 8,585
Net income $ 18,368 $ 23,619 $ 33,419 $ 47,281

Basic earnings per share $ 1.45 $ 1.91 $ 2.63 $ 3.82

Diluted earnings per share $ 1.44 $ 1.89 $ 2.61 $ 3.78
Number of shares used in basic earnings per share calculation 12,668 12,343 12,725 12,379
Number of shares used in diluted earnings per share calculation 12,764 12,495 12,794 12,511

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 Alphabet Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions, unaudited)

Quarter Ended June 30, Year to Date June 30,

2023 2024 2023 2024
Operating activities
Net income $ 18,368 $ 23,619 $ 33,419 $ 47,281
Adjustments:
Depreciation of property and equipment 2,824 3,708 5,459 7,121
Stock-based compensation expense 5,774 5,865 11,058 11,129
Deferred income taxes (2,415) (3,157) (4,269) (2,738)
Loss (gain) on debt and equity securities, net 509 1,024 425 (757)
Other 670 851 1,774 1,185
Changes in assets and liabilities, net of effects of acquisitions:
Accounts receivable, net (2,948) (3,057) 1,506 110
Income taxes, net(1) 4,451 (3,900) 8,520 (889)
Other assets (513) (532) (1,259) (1,532)
Accounts payable 1,119 1,561 14 (563)
Accrued expenses and other liabilities 459 (122) (4,037) (5,176)
Accrued revenue share 184 419 (418) 97
Deferred revenue 184 361 (17) 220
Net cash provided by operating activities 28,666 26,640 52,175 55,488
Investing activities
Purchases of property and equipment (6,888) (13,186) (13,177) (25,198)
Purchases of marketable securities (21,362) (22,327) (35,589) (43,011)
Maturities and sales of marketable securities 18,722 33,592 37,049 58,577
Purchases of non-marketable securities (887) (993) (1,513) (2,199)
Maturities and sales of non-marketable securities 145 292 181 605
Acquisitions, net of cash acquired, and purchases of intangible
assets (298) (26) (340) (87)
Other investing activities (232) (133) (357) (32)
Net cash used in investing activities (10,800) (2,781) (13,746) (11,345)
Financing activities
Net payments related to stock-based award activities (2,736) (3,209) (4,725) (6,138)
Repurchases of stock (14,969) (15,684) (29,526) (31,380)
Dividend payments 0 (2,466) 0 (2,466)
Proceeds from issuance of debt, net of costs 1,123 2,893 8,050 4,875
Repayments of debt (1,255) (2,423) (8,207) (5,502)
Proceeds from sale of interest in consolidated entities, net 2 0 5 8
Net cash used in financing activities (17,835) (20,889) (34,403) (40,603)
Effect of exchange rate changes on cash and cash equivalents (26) (238) 24 (363)
Net increase (decrease) in cash and cash equivalents 5 2,732 4,050 3,177
Cash and cash equivalents at beginning of period 25,924 24,493 21,879 24,048
Cash and cash equivalents at end of period $ 25,929 $ 27,225 $ 25,929 $ 27,225
(1)
The three and six months periods ended June 30, 2023 included the effect of the IRS payment deferral relief made
available to taxpayers headquartered in designated counties in California,

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Segment Results
The following table presents our segment revenues and operating income (loss) (in millions; unaudited):

Quarter Ended June 30,

2023 2024
Revenues:
Google Services $ 66,285 $ 73,928
Google Cloud 8,031 10,347
Other Bets 285 365
Hedging gains (losses) 3 102
Total revenues $ 74,604 $ 84,742
Operating income (loss):
Google Services $ 23,454 $ 29,674
Google Cloud 395 $ 1,172
Other Bets (813) $ (1,134)
Alphabet-level activities (1,198) $ (2,287)
Total income from operations $ 21,838 $ 27,425

We report our segment results as Google Services, Google Cloud, and Other Bets:
• Google Services includes products and services such as ads, Android, Chrome, devices, Google Maps,
Google Play, Search, and YouTube. Google Services generates revenues primarily from advertising; fees
received for consumer subscription-based products such as YouTube TV, YouTube Music and Premium,
and NFL Sunday Ticket, as well as Google One; the sale of apps and in-app purchases and devices.
• Google Cloud includes infrastructure and platform services, collaboration tools, and other services for
enterprise customers. Google Cloud generates revenues primarily from consumption-based fees and
subscriptions received for Google Cloud Platform services, Google Workspace communication and
collaboration tools, and other enterprise services.
• Other Bets is a combination of multiple operating segments that are not individually material. Revenues
from Other Bets are generated primarily from the sale of healthcare-related services and internet services.
Certain costs are not allocated to our segments because they represent Alphabet-level activities. These costs
primarily include AI-focused shared R&D activities, including development costs of our general AI models; corporate
initiatives such as our philanthropic activities; corporate shared costs such as certain finance, human resource, and
legal costs, including certain fines and settlements. Charges associated with employee severance and office space
reductions during 2023 and employee severance in 2024 were also not allocated to our segments. Additionally,
hedging gains (losses) related to revenue are not allocated to our segments.

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Other Income (Expense), Net

The following table presents our other income (expense), net (in millions; unaudited):

Quarter Ended June 30,

2023 2024
Interest income $ 892 $ 1,090
Interest expense (43) (67)
Foreign currency exchange gain (loss), net (268) (173)
Gain (loss) on debt securities, net (304) (310)
Gain (loss) on equity securities, net(1) (205) (714)
Performance fees 5 128
Income (loss) and impairment from equity method investments, net (106) 32
Other 94 140
Other income (expense), net $ 65 $ 126
(1)
Includes all gains and losses, unrealized and realized, on equity securities. For Q2 2024, the net effect of the loss on equity
securities of $714 million and the $128 million reversal of previously accrued performance fees related to certain
investments decreased the provision for income tax, net income, and diluted EPS by $123 million, $463 million, and $0.04,
respectively. Fluctuations in the value of our investments may be affected by market dynamics and other factors and could
significantly contribute to the volatility of OI&E in future periods.

Reconciliation from GAAP Net Cash Provided by Operating Activities to Non-GAAP Free Cash Flow (in
millions; unaudited):

We provide non-GAAP free cash flow because it is a liquidity measure that provides useful information to
management and investors about the amount of cash generated by the business that can be used for strategic
opportunities, including investing in our business and acquisitions, and to strengthen our balance sheet.

Quarter Ended
June 30, 2024
Net cash provided by operating activities $ 26,640
Less: purchases of property and equipment (13,186)
Free cash flow $ 13,454

Free cash flow: We define free cash flow as net cash provided by operating activities less capital expenditures.

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Reconciliation from GAAP Revenues to Non-GAAP Constant Currency Revenues and GAAP Percentage
Change in Revenues to Non-GAAP Percentage Change in Constant Currency Revenues (in millions, except
percentages; unaudited):

We provide non-GAAP constant currency revenues (“constant currency revenues”) and non-GAAP percentage change
in constant currency revenues (“percentage change in constant currency revenues”), because they facilitate the
comparison of current results to historic performance by excluding the effect of foreign exchange rate movements (“FX
Effect”) as well as hedging activities, which are recognized at the consolidated level, as they are not indicative of our
core operating results.
Non-GAAP constant currency revenues is defined as revenues excluding the effect of foreign exchange rate
movements and hedging activities and is calculated by translating current period revenues using prior period exchange
rates and excluding any hedging effect recognized in the current period. We calculate the percentage change in
constant currency revenues by comparing constant currency revenues to the prior year comparable period revenues,
excluding any hedging effect recognized in the prior period.
Revenues by Geography
Comparison from the Quarter Ended June 30, 2023 to the Quarter Ended June 30, 2024

Quarter Ended June 30, 2024

% Change from Prior Period

Quarter Ended June 30, Constant Less Constant

Less FX Currency As Hedging Less FX Currency
2023 2024 Effect Revenues Reported Effect Effect Revenues
United States $ 35,073 $ 41,196 $ 0 $ 41,196 17 % 0% 17 %
EMEA 22,289 24,683 (367) 25,050 11 % (1)% 12 %
APAC 12,728 13,823 (595) 14,418 9% (4)% 13 %
Other Americas 4,511 4,938 (305) 5,243 9% (7)% 16 %
Revenues, excluding hedging effect 74,601 84,640 (1,267) 85,907 13 % (2)% 15 %
Hedging gains (losses) 3 102
Total revenues(1) $ 74,604 $ 84,742 $ 85,907 14 % 1% (2)% 15 %

(1)
Total constant currency revenues of $85.9 billion for the quarter ended June 30, 2024 increased $11.3 billion compared to $74.6 billion in
revenues, excluding hedging effect for the quarter ended June 30, 2023.

Comparison from the Quarter Ended March 31, 2024 to the Quarter Ended June 30, 2024

Quarter Ended June 30, 2024

% Change from Prior Period
Quarter Ended
Constant Less Constant
March 31, June 30, Less FX Currency As Hedging Less FX Currency
2024 2024 Effect Revenues Reported Effect Effect Revenues
United States $ 38,737 $ 41,196 $ 0 $ 41,196 6% 0% 6%
EMEA 23,788 24,683 (250) 24,933 4% (1)% 5%
APAC 13,289 13,823 (250) 14,073 4% (2)% 6%
Other Americas 4,653 4,938 (64) 5,002 6% (2)% 8%
Revenues, excluding hedging effect 80,467 84,640 (564) 85,204 5% (1)% 6%
Hedging gains (losses) 72 102
Total revenues(1) $ 80,539 $ 84,742 $ 85,204 5% 0% (1)% 6%

(1)
Total constant currency revenues of $85.2 billion for the quarter ended June 30, 2024 increased $4.7 billion compared to $80.5 billion in
revenues, excluding hedging effect for the quarter ended March 31, 2024.

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Total Revenues — Prior Year Comparative Periods

Comparison from the Quarter Ended June 30, 2022 to the Quarter Ended June 30, 2023
Quarter Ended June 30, 2023
% Change from Prior Period
Quarter Ended June 30, Constant Less Constant
Less FX Currency As Hedging Less FX Currency
2022 2023 Effect Revenues Reported Effect Effect Revenues
Revenues excluding hedging effect $ 69,310 $ 74,601 $ (1,146) $ 75,747 8% (1)% 9%
Hedging gains (losses) $ 375 $ 3
Total revenues $ 69,685 $ 74,604 $ 75,747 7% (1)% (1)% 9%

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