Alphabet Inc. (GOOG) Q3 2024 Earnings Breakdown

Key Highlights:

• Alphabet Inc. reported strong financial performance for Q3 2024 with consolidated revenues reaching $88.3 billion, a 15% year-over-year increase.
• This growth was primarily driven by Google Services, with revenues increasing by $8.5 billion (13%), and Google Cloud, with revenues surging by $2.9 billion (35%).
• Operating income showed significant improvement, reaching $28.5 billion, a 34% increase compared to Q3 2023.
• Diluted earnings per share (EPS) also climbed to $2.12, marking a 37% year-over-year jump.
• Acquisition of character.ai: Alphabet acquired a non-exclusive license to character.ai's large language model technology for $2.7 billion, leading to the recording of goodwill and intangible assets in Google Services and Google Cloud.
• Antitrust Challenges: Several significant legal proceedings are ongoing, with some reaching critical milestones:
  • The EC upheld a €2.4 billion fine related to shopping search results, resulting in a $3 billion cash payment in Q3 2024.
  • A U.S. District Court ruled against Google in a DOJ-led lawsuit concerning Search and Search advertising, with remedy proceedings currently underway.
  • A California court ordered changes to Google Play's business model following the Epic Games v. Google verdict, though implementation is currently paused pending an appeal.
  • Other ongoing antitrust investigations, including those related to advertising technology and Google Play, continue to pose potential risks.
• Share Repurchases: Alphabet continued its share buyback program, repurchasing $47 billion of Class A and Class C shares during the nine months
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