Alphabet Reports 15% Revenue Growth to $88.3B, Net Income Up 34% in Q3 2024

Alphabet Inc. reported significant financial growth in its latest 10-Q filing for the quarter ending September 30, 2024. The company achieved total revenues of $88,268 million, marking a 15% increase from $76,693 million in the same quarter of 2023. For the nine months ended September 30, 2024, revenues reached $253,549 million, up from $221,084 million year-over-year.

The growth in revenue was primarily driven by the Google Services segment, which generated $76,510 million in the third quarter, an increase from $67,986 million in the prior year. Google advertising revenues rose to $65,854 million, compared to $59,647 million in Q3 2023. Google Cloud also saw substantial growth, with revenues of $11,353 million for the quarter, up from $8,411 million in the same period last year.

Despite the revenue increase, total costs and expenses for the three months ended September 30, 2024, rose to $59,747 million from $55,350 million in 2023. This led to an operating income of $28,521 million, a 34% increase from $21,343 million in the previous year. Net income for the quarter was $26,301 million, up 34% from $19,689 million in Q3 2023, resulting in a diluted earnings per share of $2.12, compared to $1.55 in the same quarter last year.

Alphabet's total assets increased from $402,392 million as of December 31, 2023, to $430,266 million by September 30, 2024. Total stockholders’ equity also rose from $283,379 million to $314,119 million during the same period. The company reported cash, cash equivalents, and marketable securities of $93,230 million as of September 30, 2024, down from $110,916 million at the end of 2023.

In terms of strategic developments, Alphabet made a significant acquisition in August 2024, entering into a license agreement with character.ai for $2.7 billion, which included the cancellation of convertible instruments. This transaction resulted in the recording of $2.7 billion in goodwill and $413 million in intangible assets.

The company also faced regulatory challenges, including a €2.4 billion ($2.7 billion) fine upheld by the European Court of Justice, leading to a cash payment of $3.0 billion in Q3 2024. Additionally, Alphabet continued its share repurchase program, buying back $15.3 billion worth of shares in the third quarter, with $59.7 billion remaining available under its current authorization.

Overall, Alphabet's financial performance reflects robust growth in its core business segments, alongside strategic investments and ongoing regulatory challenges.