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 andmomentum in Cloud. We are innovating at every layer of the AI stack. Our longstanding infrastructure leadership andin-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% yearon-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 tocreating 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 (inmillions, except for per share information and percentages).
Quarter Ended June 30,
2023
2024
Revenues
Change in revenues year over year
Change in constant currency revenues year over year(1)$74,604$7%
9%84,74214 %15 %Operating income
Operating margin$

21,838$29 %

27,42532 %Other income (expense), net

$

65

$

126

Net income
Diluted EPS$$

18,368
1.44$$

23,6191.89(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

Google Search & other
YouTube ads
Google Network
Google advertising
Google subscriptions, platforms, and devices
Google Services total
Google Cloud
Other Bets
Hedging gains (losses)
Total revenues$

Total TAC$$

Number of employees

Quarter Ended June 30,
2023
2024
42,628 $48,509
7,665
8,663
7,850
7,444
58,14364,616
8,142
9,312
66,28573,928
8,031
10,347
285
365
3
102
74,604 $84,742
12,537$

181,798

13,387
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
Google Cloud
Other Bets
Alphabet-level activities(1)Total income from operations(1)$

23,454 $395 $(813) $
(1,198) $29,674
1,172(1,134)(2,287)$

21,838 $27,425In 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 asof September 9, 2024, on each of the company’s Class A, Class B, and Class C shares.

2

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 forthe 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 Reporton 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 relianceshould 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 percentagechange in constant currency revenues. The presentation of this financial information is not intended to beconsidered in isolation or as a substitute for, or superior to, the financial information prepared and presented inaccordance with GAAP.
We use these non-GAAP financial measures for financial and operational decision-making and as a means toevaluate period-to-period comparisons. We believe that these non-GAAP financial measures provide meaningfulsupplemental 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 foreignexchange rate movements and hedging activities, which are recognized at the consolidated level. We believe thatboth 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 bothbecause (1) they allow for greater transparency with respect to key metrics used by management in its financial andoperational 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 theselimitations 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 inaccordance with GAAP.
For more information on these non-GAAP financial measures, please see the sections captioned “Reconciliationfrom GAAP Net Cash Provided by Operating Activities to Non-GAAP Free Cash Flow” and “Reconciliation fromGAAP Revenues to Non-GAAP Constant Currency Revenues and GAAP Percentage Change in Revenues to NonGAAP Percentage Change in Constant Currency Revenues” included at the end of this release.
Contact
Investor relations
Media
investor-relations@abc.xyz press@abc.xyz

3Alphabet Inc.
CONSOLIDATED BALANCE SHEETS(In millions, except par value per share amounts)
As of December 31,
2023

As of June 30,2024(unaudited)

AssetsCurrent assets:
Cash and cash equivalents$

24,048$27,225Marketable securities

86,86873,500Total cash, cash equivalents, and marketable securities

110,916

100,725

Accounts receivable, net

47,96447,087

Other current assets

12,65014,183

Total current assets

171,530

161,995

Non-marketable securities

31,00834,172

Deferred income taxes

12,16914,958Property and equipment, net

134,345

151,155

Operating lease assets

14,091

13,606

Goodwill

29,19829,185

Other non-current assets

10,051

9,699

Total assets$

402,392$

414,770

$

7,493

$

6,092

Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable
Accrued compensation and benefits

15,14011,373

Accrued expenses and other current liabilities

46,16847,298

Accrued revenue share

8,876

8,899

Deferred revenue

4,137

4,251

81,814

77,913

13,253

13,238911985

Total current liabilities
Long-term debt
Deferred revenue, non-current
Income taxes payable, non-current

8,474

7,703

Deferred income taxes

485

717

Operating lease liabilities

12,46011,708Other long-term liabilities

1,616

1,753

Total liabilities

119,013

114,017

Preferred stock, $0.001 par value per share, 100 shares authorized; no sharesissued and outstanding

0

0

Class A, Class B, and Class C stock and additional paid-in capital, $$0.001 parvalue 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

76,53479,732

Commitments and contingencies
Stockholders’ equity:

Accumulated other comprehensive income (loss)
Retained earnings
Total stockholders’ equity(4,402)(5,012)

211,247

226,033

283,379

Total liabilities and stockholders’ equity$

4402,392

300,753$414,770

Alphabet Inc.
CONSOLIDATED STATEMENTS OF INCOME(In millions, except per share amounts, unaudited)
Quarter Ended June 30,
2023
Revenues$

Year to Date June 30,

2024

74,604$2023

84,742$

2024

144,391$

165,281

Costs and expenses:
Cost of revenues

31,91635,50762,52869,219Research and development

10,588

11,86022,05623,763

Sales and marketing

6,781

6,792

13,314

13,218

3,481

3,158

7,240

6,184

Total costs and expenses

General and administrative

52,76657,317105,138

112,384

Income from operations

21,83827,42539,25352,897

Other income (expense), net

65

126

855

2,969

Income before income taxes

21,90327,551

40,10855,866

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

12,66812,343

12,725

12,379Number of shares used in diluted earnings per share calculation

12,764

12,495

12,794

12,511

5

Alphabet Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS(In millions, unaudited)
Quarter Ended June 30,2023

Year to Date June 30,

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

11,129Deferred 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

Accounts receivable, net(2,948)(3,057)

1,506

110

Income taxes, net(1)4,451(3,900)

8,520

(889)

Changes in assets and liabilities, net of effects of acquisitions:

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

28,666

26,64052,17555,488Purchases 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

Net cash provided by operating activities
Investing activities

18,722

33,59237,04958,577Purchases 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)

(10,800)(2,781)(13,746)(11,345)

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)0(2,466)0(2,466)

Net cash used in investing activities
Financing activities

Dividend payments
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
Net cash used in financing activities
Effect of exchange rate changes on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period
(1)

$

2

0

5

8

(17,835)(20,889)(34,403)(40,603)

(26)

(238)

24

(363)

5

2,732

4,050

3,177

25,92424,493

21,87924,04825,929$27,225$25,929$27,225The three and six months periods ended June 30, 2023 included the effect of the IRS payment deferral relief madeavailable to taxpayers headquartered in designated counties in California,

6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
Google Cloud
Other Bets
Hedging gains (losses)
Total revenues
Operating income (loss):
Google Services
Google Cloud
Other Bets
Alphabet-level activities
Total income from operations

$

$
$

$

66,285 $
8,031
285
3
74,604 $73,928
10,347365
102
84,742

23,454 $395 $(813) $
(1,198) $21,838 $29,674
1,172(1,134)(2,287)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 forenterprise customers. Google Cloud generates revenues primarily from consumption-based fees andsubscriptions received for Google Cloud Platform services, Google Workspace communication andcollaboration 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, andlegal 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.

7

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

Interest income
Interest expense
Foreign currency exchange gain (loss), net
Gain (loss) on debt securities, net
Gain (loss) on equity securities, net(1)Performance fees
Income (loss) and impairment from equity method investments, net
Other
Other income (expense), net
(1)

$

$

Quarter Ended June 30,
2023
2024
892 $
1,090
(43)
(67)
(268)
(173)
(304)
(310)
(205)
(714)
5
128
(106)
32
94
140
65 $
126

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 (inmillions; 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$
26,640(13,186)$
13,454

Net cash provided by operating activities
Less: purchases of property and equipment
Free cash flow

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

8

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 thecomparison 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 ourcore 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 inconstant 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 30,2023
United States

$

2024

35,073$$Less
Hedging
EffectLess FX
EffectConstant
Currency
Revenues

41,196

17 %

0%

17 %

24,683(367)

25,050

11 %

(1)%

12 %

APAC

12,72813,823(595)

14,418

9%

(4)%

13 %

Other Americas

4,511

4,938

(305)

5,243

9%

(7)%

16 %

Revenues, excluding hedging effect74,601

84,640(1,267)85,907

13 %

(2)%

15 %

3

102
85,907

14 %

(2)%

15 %

(1)

$

74,604$0As
Reported

22,289Total revenues(1)41,196

Constant
Currency
Revenues

EMEA

Hedging gains (losses)$

Less FX
Effect84,742$

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 inrevenues, 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
March 31,2024
United States$

Constant
Currency
Revenues

6%

0%

6%

24,933

4%

(1)%

5%

APAC

13,28913,823(250)

14,073

4%

(2)%

6%

Other Americas

4,653

4,938

(64)

5,002

6%

(2)%

8%

Revenues, excluding hedging effect80,467

84,640(564)

85,204

5%

(1)%

6%

85,204

5%

(1)%

6%

(1)

$

Less FX
Effect41,19672

0

Less
Hedging
Effect(250)

80,539$As
Reported

24,683$

41,196

Constant
Currency
Revenues

23,788

Total revenues(1)$Less FX
Effect

EMEA

Hedging gains (losses)

38,737

June 30,
2024

102
$

84,742$0%Total constant currency revenues of $85.2 billion for the quarter ended June 30, 2024 increased $4.7 billion compared to $80.5 billion inrevenues, excluding hedging effect for the quarter ended March 31, 2024.

9

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,
2022

Less FX
Effect2023

Revenues excluding hedging effect$69,310$74,601

Hedging gains (losses)

$

375

$

3

Total revenues$

69,685$74,604$

Constant
Currency
RevenuesAs
Reported(1,146) $75,7478%$75,747

7%

10

Less
Hedging
Effect(1)%

Less FX
EffectConstant
Currency
Revenues

(1)%

9%

(1)%

9%