How does Alphabet make their money?
Q4 2024 revenue for Alphabet increased 12% year-over-year to reach $96.5 billion for total annual revenue of $350,018. Let’s take a look at Q4 2024 earnings for Alphabet to see how they made their money and understand the fundamentals behind their business.
Ticker: GOOG
Consolidated revenue increased in Q4 2024 increased 12% year-over-year to $96.5 billion. More impressive was the increase in net income of 28% due to growth in high margin revenue streams. Net income increased from $20,687 million in Q4 2023 to $26,536 in Q4 2024.
Here is a breakdown of how each revenue stream increased from Q4 2023 to Q4 2024 in millions:
| Revenue Stream | 2023 | 2024 |
|---|---|---|
| Google Search & Other | $48,020 | $54,034 |
| YouTube Ads | $9,200 | $10,473 |
| Google Network | $8,297 | $7,954 |
| Google Subscriptions, platforms, and devices | $10,794 | $11,633 |
| Google Cloud | $9,192 | $11,955 |
| Other Bets | $657 | $400 |
| Hedgin gains (losses) | $150 | $20 |
Alphabet saw great growth in Google Search & Other reaching double digit revenue growth of 12.52% as revenue increased to $54,034 million in Q4 2024. Income from YouTube ads also saw double digit growth of 13.84% with revenue increasing from $9,200 million to $10,473 million. Most impressive was growth from Google Cloud as revenue increased 30.06% year-over-year to reach $11,633 in Q4 2024. Google Network saw a decrease in revenue of 4.13% to as revenue slid to $7,954 from $8,297 the prior year.
Operating income breakdown
| Operating income (loss) | 2023 | 2024 |
|---|---|---|
| Google Services | $26,730 | $32,836 |
| Google Cloud | $864 | $2,093 |
| Other Bets | $-863 | $-1,174 |
| Alphabet-level activities | $-3,034 | $-2,783 |
