Alphabet Announces First Quarter 2024 Results
MOUNTAIN VIEW, Calif. – April 25, 2024 – Alphabet Inc. (NASDAQ: GOOG, GOOGL) today announced financial
results for the quarter ended March 31, 2024.
Sundar Pichai, CEO, said: “Our results in the first quarter reflect strong performance from Search, YouTube andCloud. We are well under way with our Gemini era and there’s great momentum across the company. Ourleadership in AI research and infrastructure, and our global product footprint, position us well for the next wave of AI
innovation.”
Ruth Porat, President and Chief Investment Officer; CFO said: “Our strong financial results for the first quarterreflect revenue strength across the company and ongoing efforts to durably reengineer our cost base. We delivered
revenues of $80.5 billion, up 15% year-on-year, and operating margin expansion.”
Q1 2024 Financial Highlights (unaudited)
The following table summarizes our consolidated financial results for the quarters ended March 31, 2023 and 2024
(in millions, except for per share information and percentages).
Quarter Ended March 31,
2023
2024
(unaudited)
69,787$3%
6%80,53915 %16 %Revenues
Change in revenues year over year
Change in constant currency revenues year over year(1)$Operating income
Operating margin$

17,415$25 %

25,47232 %Other income (expense), net

$

790

$

2,843

Net income
Diluted EPS$$

15,051
1.17$$

23,662
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.

Q1 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$$

Quarter Ended March 31,
2023
2024
40,359 $46,156
6,693
8,090
7,496
7,413
54,54861,6597,413
8,739
61,961
70,398
7,454
9,574
288
495
84
72
69,787 $
80,53911,721

Number of employees$

190,711

12,946
180,895

Segment Operating Results
As announced on April 18, 2024, we are consolidating teams that focus on building artificial intelligence (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 will be included as part of Google
DeepMind, reported within Alphabet-level activities, prospectively beginning in the second quarter of 2024.
Quarter Ended March 31,
2023
2024
Operating income (loss):
Google Services
Google Cloud
Other Bets
Alphabet-level activities(1)Total income from operations(1)$

21,737 $191 $(1,225) $(3,288) $27,897900(1,020)(2,305)$

17,415 $25,472

In addition to the costs included in Alphabet-level activities, hedging gains (losses) related to revenue were $84 million and$72 million for the three months ended March 31, 2023 and 2024, respectively. For the three months ended March 31,
2023 and 2024, Alphabet-level activities included substantially all of the charges related to employee severance and ouroffice space optimization efforts.

Additional Information Relating to the Quarter Ended March 31, 2024 (unaudited)
Dividend Program
Alphabet’s Board of Directors today approved the initiation of a cash dividend program, and declared a cash
dividend of $0.20 per share that will be paid on June 17, 2024, to stockholders of record as of June 10, 2024, oneach of the company’s Class A, Class B, and Class C shares. The company intends to pay quarterly cash dividends
in the future, subject to review and approval by the company’s Board of Directors in its sole discretion.
Stock Repurchases
Alphabet’s Board of Directors today authorized the company to repurchase up to an additional $70.0 billion of its
Class A and Class C shares in a manner deemed in the best interest of the company and its stockholders, taking
into account the economic cost and prevailing market conditions, including the relative trading prices and volumesof the Class A and Class C shares. The repurchases are expected to be executed from time to time, subject to2general business and market conditions and other investment opportunities, through open market purchases or
privately negotiated transactions, including through Rule 10b5-1 plans.
Employee Severance and Related Charges
Compensation expenses included employee severance and related charges for the three months ended March 31,
2024 of $716 million, a $1.3 billion decrease in severance and related charges as compared to the three months
ended March 31, 2023. For the first quarter of 2024, these charges are included within cost of revenues, researchand development, sales and marketing, and general and administrative expenses in the amounts of $153 million,$247 million, $217 million, and $99 million, respectively. For additional information about the effect of these charges
in each period, see the section captioned “Reconciliation from Certain GAAP Measures to Certain Non-GAAP
Measures, Excluding the Effect of Severance and Related and Office Space Charges” below.
Webcast and Conference Call Information
A live audio webcast of our first quarter 2024 earnings release call will be available on YouTube at https://www.youtube.com/watch?v=A2O2f5dlzcE. 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, 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 March 31, 2024, and may be set forth in otherreports and filings we make with the SEC. All information provided in this release and in the attachments is as ofApril 25, 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 unlessrequired 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, and other cost of sales, operating expenses, and operating margin,excluding the effect of severance and related and office space charges. 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 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.

3

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”, “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” and “Reconciliation from Certain GAAP Measures to Certain
Non-GAAP Measures, Excluding the Effect of Severance and Related and Office Space Charges” included at theend of this release.
Contact
Investor relations
Media
investor-relations@abc.xyz press@abc.xyz

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

As of March 31,2024(unaudited)

AssetsCurrent assets:
Cash and cash equivalents$

24,048$24,493Marketable securities

86,86883,597

Total cash, cash equivalents, and marketable securities

110,916

108,090

Accounts receivable, net

47,96444,552Other current assets

12,65012,829Total current assets

171,530

165,471

Non-marketable securities

31,00833,994

Deferred income taxes

12,169

11,687

Property and equipment, net

134,345

143,182

Operating lease assets

14,091

13,768Goodwill

29,19829,183

Other non-current assets

10,051

10,065

Total assets$

402,392$

407,350

$

7,493

$

6,198

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

15,1409,703

Accrued expenses and other current liabilities

46,16848,603

Accrued revenue share

8,876

8,520

Deferred revenue

4,137

3,973

81,81476,997

13,253

13,228911

921

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

8,474

9,234

Deferred income taxes

485

486

Operating lease liabilities

12,46011,957

Other long-term liabilities

1,616

1,683

Total liabilities

119,013

114,5060076,534

77,913

Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.001 par value per share, 100 shares authorized; no sharesissued and outstanding
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 12,381 (Class A
5,879, Class B 867, Class C 5,635) shares issued and outstanding
Accumulated other comprehensive income (loss)
Retained earnings
Total stockholders’ equity(4,402)(4,839)211,247

219,770

283,379

Total liabilities and stockholders’ equity$

5402,392

292,844$407,350Alphabet Inc.
CONSOLIDATED STATEMENTS OF INCOME(In millions, except per share amounts, unaudited)
Quarter Ended March 31,
2023
Revenues$

2024

69,787$80,539Costs and expenses:
Cost of revenues

30,612

33,712

Research and development

11,468

11,903

Sales and marketing

6,533

6,426

3,759

3,026

Total costs and expenses

General and administrative

52,37255,067

Income from operations

17,41525,472Other income (expense), net

790

2,843

Income before income taxes

18,20528,315

Provision for income taxes

3,154

4,653

Net income$

15,051$

23,662

Basic earnings per share of Class A, Class B, and Class C stock

$

1.18

$

1.91

Diluted earnings per share of Class A, Class B, and Class C stock

$

1.17

$

1.89

Number of shares used in basic earnings per share calculation

12,781

12,415

Number of shares used in diluted earnings per share calculation

12,823

12,527

6

Alphabet Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS(In millions, unaudited)
Quarter Ended March 31,
2023

2024

Operating activities
Net income$

15,051$

23,662Adjustments:
Depreciation of property and equipment

2,635

3,413

Stock-based compensation expense

5,284

5,264

Deferred income taxes(1,854)419

Loss (gain) on debt and equity securities, net(84)(1,781)

1,104

334

Accounts receivable, net

4,454

3,167

Income taxes, net

4,069

3,011

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

Other assets(746)(1,000)Accounts payable(1,105)(2,124)

Accrued expenses and other liabilities(4,496)(5,054)

Accrued revenue share

(602)

(322)

Deferred revenue

(201)

(141)

23,50928,848Purchases of property and equipment(6,289)(12,012)Purchases of marketable securities(14,227)(20,684)

Maturities and sales of marketable securities

18,32724,985(626)(1,206)

Maturities and sales of non-marketable securities

36

313

Acquisitions, net of cash acquired, and purchases of intangible assets

(42)

(61)

Other investing activities

(125)

101

(2,946)(8,564)

Net cash provided by operating activities
Investing activities

Purchases of non-marketable securities

Net cash used in investing activities
Financing activities
Net payments related to stock-based award activities(1,989)(2,929)Repurchases of stock(14,557)(15,696)

Proceeds from issuance of debt, net of costs

6,927

1,982

Repayments of debt

(6,952)(3,079)3

8(16,568)(19,714)

50

(125)

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

4,045

445

Cash and cash equivalents at beginning of period

21,87924,048Cash and cash equivalents at end of period$

725,924$24,493

Segment Results
The following table presents our segment revenues and operating income (loss) (in millions; unaudited):
Quarter Ended March 31,
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

$

$
$

$

61,961 $
7,454
288
84
69,787 $70,3989,574
495
72
80,53921,737 $191 $(1,225) $(3,288) $17,415 $27,897900(1,020)(2,305)25,472

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 the first quarter of 2024, were not allocated to our segments.
Additionally, hedging gains (losses) related to revenue are not allocated to our segments.

8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 March 31,
2023
2024
797 $
1,061
(80)
(94)
(210)
(238)
(293)
(462)
377
2,243
118
104
(51)
(26)
132
255
790 $
2,843

Includes all gains and losses, unrealized and realized, on equity securities. For Q1 2024, the net effect of the gain on equity
securities of $2.2 billion and the $104 million reversal of previously accrued performance fees related to certain
investments increased the provision for income tax, net income, and diluted EPS by $493 million, $1.9 billion, and $0.15,
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
March 31, 2024$
28,848(12,012)$
16,836

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.

9

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 March 31, 2023 to the Quarter Ended March 31, 2024
Quarter Ended March 31, 2024
% Change from Prior Period
Quarter Ended March 31,
2023
United States

$

2024

32,864$38,737Less FX
EffectConstant
Currency
Revenues

$

$

0

As
Reported

Less
Hedging
EffectLess FX
EffectConstant
Currency
Revenues

38,737

18 %

0%

18 %

EMEA

21,07823,788204

23,584

13 %

1%

12 %

APAC

11,681

13,289(439)

13,728

14 %

(4)%

18 %

Other Americas

4,080

4,653

(152)

4,805

14 %

(4)%

18 %

Revenues, excluding hedging effect69,70380,467(387)

80,854

15 %

(1)%

16 %

80,854

15 %

(1)%

16 %

Hedging gains (losses)
Total revenues(1)
(1)

84
$

72

69,787$80,539$0%Total constant currency revenues of $80.9 billion for the quarter ended March 31, 2024 increased $11.2 billion compared to $69.7 billion inrevenues, excluding hedging effect for the quarter ended March 31, 2023.

Comparison from the Quarter Ended December 31, 2023 to the Quarter Ended March 31, 2024
Quarter Ended March 31, 2024
% Change from Prior Period
Quarter Ended

United States

December31, 2023

March 31,
2024

$

$

41,99538,737

EMEA

25,01023,788APAC

13,97913,289Less FX
Effect$0Constant
Currency
Revenues$As
Reported

Less
Hedging
EffectLess FX
EffectConstant
Currency
Revenues

38,737

(8)%

0%

(8)%

360

23,428

(5)%

1%

(6)%

85

13,204

(5)%

1%

(6)%

Other Americas

5,176

4,653

(72)

4,725

(10)%

(1)%

(9)%

Revenues, excluding hedging effect86,16080,467373

80,094

(7)%

0%

(7)%

80,094

(7)%

0%

(7)%

Hedging gains (losses)
Total revenues(1)
(1)

150
$

86,31072$

80,539$0%Total constant currency revenues of $80.1 billion for the quarter ended March 31, 2024 decreased $6.1 billion compared to $86.2 billion inrevenues, excluding hedging effect for the quarter ended December 31, 2023.

10

Total Revenues — Prior Year Comparative Periods
Comparison from the Quarter Ended March 31, 2022 to the Quarter Ended March 31, 2023
Quarter Ended March 31, 2023
% Change from Prior Period
Quarter Ended March 31,
2022

Less FX
Effect2023

Revenues excluding hedging effect$

67,733$69,703

Hedging gains (losses)

$

278

$

84

Total revenues$

68,011$

69,787$

Constant
Currency
RevenuesAs
Reported(2,174) $71,877

3%$

71,877

3%

11

Less
Hedging
Effect0%Less FX
EffectConstant
Currency
Revenues

(3)%

6%

(3)%

6%

Reconciliation from Certain GAAP Measures to Certain Non-GAAP Measures, Excluding the Effect ofSeverance and Related and Office Space Charges (in millions, expect for percentages; unaudited):
We provide the following non-GAAP measures because they provide useful information to management andinvestors about the effect on expense growth from the severance and related and office space charges taken in thefirst quarter of 2023, and for comparability, the severance and related charges taken in the first quarter of 2024:•

Non-GAAP other cost of revenues, excluding severance and related and office space charges•

Non-GAAP operating expenses, excluding severance and related and office space charges•

Non-GAAP percentage change in other cost of revenues, excluding severance and related and office spacecharges•

Non-GAAP percentage change in operating expenses, excluding severance and related and office spacecharges•

Non-GAAP operating income, excluding severance and related and office space charges, and•

Non-GAAP operating margin, excluding severance and related and office space charges

These non-GAAP measures exclude the effect of severance and related and office space charges recorded during
the first quarters of 2023 and 2024. We calculate the percentage change by comparing expenses and operating
income to the prior year comparable quarter, each excluding severance and related and office space charges
recorded in the respective periods.
Quarter Ended March 31,
2023

2024

% Change

Revenues$

69,787$80,539Other cost of revenues$

18,891$

20,766

Less: severance and related charges

(461)

(153)

Less: office space charges

(220)

0

10 %

Other cost of revenues, excluding severance and related and office space charges$

18,210$20,61313 %Operating expenses$

21,760$21,355(2)%

Less: severance and related charges(1,533)

Less: office space charges

(563)

(344)

0

Operating expenses, excluding severance and related and office space charges$

19,883$

20,792

5%

Operating income$

17,415$25,47246 %Operating margin25 %Add: severance and related charges

32 %

1,994

Add: office space charges

564

Operating income, excluding severance and related and office space charges
Operating margin, excluding severance and related and office space charges

12$

19,973
29 %

7%

716
0
$

26,18833 %31 %4%