Alphabet's Q2 ad revenue climbs 11% to $64.6 billion

Ad sales in the YouTube division grew by 13% to $8.67 billion, up from $7.66 billion in 2023.

Google parent Alphabet announces its second quarter 2024 results. Advertising sales rose by 11% to $64.6 billion, compared to $58.1 billion in 2023. The company leverages customer data to enhance the targeting of ads within its search product. Net income for the quarter ending June 30 surged by 28.6% to $23.6 billion.

Total revenue increased by 14% to $84.74 billion. Ad sales in the YouTube division grew by 13% to $8.67 billion, up from $7.66 billion in 2023. Revenue from cloud computing services, a key indicator of enterprise technology spending, rose by 28.8% to $10.35 billion. Alphabet reported capital expenditures of $13 billion for the June quarter.

Investor reaction was mixed, with shares initially rising by about 2% before dipping by a similar amount. Alphabet's results highlight strong demand for digital ads, driven by events like the Paris Olympics and elections in several countries, including the U.S. Additionally, a recovery in enterprise spending is bolstering its software business.

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% 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 to creating investment capacity with our ongoing work to durably re-engineer our cost base.”