Alphabet, Google’s parent company, announced its second-quarter results for 2024. The company reported an increase in ad revenue, with sales rising 11% to reach $64.6 billion, up from $58.1 billion in the same period last year.
The YouTube division experienced a 13% increase in ad sales, reaching $8.67 billion, compared to $7.66 billion in 2023, marking a 13% year-over-year increase. This growth highlights the continuing strong demand for digital ads on the platform. However, YouTube’s ad sales had previously surged 21% in Q1 to $8.1 billion. Meanwhile, primetime TV ad spending in the U.S. saw a decline of 2.8% in the first half of 2024.
The company’s revenue from cloud computing services also showed significant growth, rising by 28.8% to $10.35 billion. Overall, Alphabet’s total revenue for the quarter increased by 14% to $84.74 billion. Net income surged by 28.6% to $23.6 billion. The company also reported capital expenditures of $13 billion for the June quarter.
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.”
Alphabet’s results show a strong demand for digital ads, especially with sports events like the Paris Olympics and elections in several countries. The company is also benefiting from enterprise spending, which is boosting its software business.
