Quarterly Report — Q1 2024
Filed April 26, 2024
Revenue hit $80.5 billion in Q1 2024, up 15% year-over-year, with Google Search and YouTube advertising both accelerating — Search alone pulled in $46.2B versus $40.4B a year ago. Google Cloud crossed $9.6 billion for the quarter (up 28%), continuing its march toward becoming a meaningful profit center alongside the core ads business. The company also ramped up buybacks to $15.7 billion in the quarter, signaling management's confidence in the earnings trajectory.
Filing details
Performance by segment
Google Services
Google Services revenue grew 14% YoY to $70.4 billion, driven by Google Search & other revenues up $5.8 billion to $46.2 billion, YouTube ads up $1.4 billion to $8.1 billion, and subscriptions, platforms & devices up $1.3 billion to $8.7 billion. Segment operating income surged 28% YoY to $27.9 billion, benefiting from revenue growth and reduced compensation expenses. Google Network revenues declined slightly by $83 million to $7.4 billion.
“The overall growth was driven by interrelated factors including increases in search queries resulting from growth in user adoption and usage on mobile devices; growth in advertiser spending; and improvements we have made in ad formats and delivery.”
Google Cloud
Google Cloud revenue grew 28% YoY to $9.6 billion, primarily driven by Google Cloud Platform followed by Google Workspace offerings. Operating income surged from $191 million to $900 million, a $709 million improvement, as revenue growth outpaced increases in compensation expenses and infrastructure usage costs. Revenue backlog was $72.5 billion as of March 31, 2024, primarily related to Google Cloud.
“Google Cloud's infrastructure and platform services were the largest drivers of growth in Google Cloud Platform.”
Other Bets
Other Bets revenue grew 72% YoY from $288 million to $495 million, generated primarily from healthcare-related services and internet services. Operating losses narrowed by $205 million to $(1.0) billion, primarily due to revenue growth. The segment remains unprofitable but is showing improving economics.