Alphabet's $66 billion ad revenue in Q3 FY24, up 10.6% YoY

Alphabet Inc., the parent company of Google, has reported record-breaking quarterly revenues of $88.3 billion for the third quarter of fiscal year 2024, surpassing analyst expectations of $86.4 billion. The company’s primary Google advertising business contributed $65.9 billion, exceeding projections of $65.4 billion. This is Alphabet's best quarterly revenue performance to date, topping the previous high of $86.3 billion in Q4 2023, alongside record profits, surpassing the previous best of $23.7 billion in Q1 2024.

In a significant year-on-year increase, revenue from Google Search & Other rose to $49 billion, up from $44 billion in Q3 FY23. YouTube, a key asset for Alphabet, also delivered strong performance, with ad revenue reaching $9 billion, compared to $8 billion during the same period last year. Additionally, revenue from subscription services, platforms, and devices saw notable growth, increasing from $8 billion to $10.6 billion over the year.

Alphabet's Chief Executive Officer Sundar Pichai attributed the robust financial results to the company's commitment to innovation, particularly in artificial intelligence. “The momentum across the company is extraordinary," Pichai said in a statement. "Our commitment to innovation, as well as our long-term focus and investment in AI, are paying off with consumers and partners benefiting from our AI tools."

Pichai highlighted the ways in which Alphabet’s AI initiatives are enhancing both Search and Cloud segments. In Google Search, the addition of new AI-powered features is expanding the types of searches users can perform. In Google Cloud, AI solutions are contributing to increased product adoption, attracting new customers, and securing larger deals. Furthermore, YouTube’s total ad and subscription revenue exceeded $50 billion over the past four quarters, a landmark achievement for the platform.

Alphabet's sustained revenue growth has been complemented by efforts to improve operational efficiency, resulting in better margins for the quarter. “We generated strong revenue growth in the quarter, and our ongoing efforts to improve efficiency helped deliver improved margins,” Pichai added. "I’m looking forward to driving more advances for consumers, customers, and creators globally."