Google’s parent company, Alphabet, has revealed healthy 14% year-on-year revenue growth in the previous quarter, driven by successes in search and cloud.
According to the figures, the Google Cloud division played a major role in this increase. The division achieved a quarterly revenue of 10 billion dollars and for the first time ever, operating profit was increased to more than 1 billion dollars.
Additionally, total quarterly revenue was $84.7 billion, compared to $74.6 billion in the same period last year and $80.5 billion in the first quarter of 2024.
Google Cloud Profit
The company’s overall profit was largely in line with analysts’ expectations, with revenue slightly beating the $84.2 billion forecast. YouTube’s advertising revenue fell short of forecasts, reporting $8.66 billion compared to the expected $8.93 billion, but it still saw a billion-dollar increase in the space of a year.
Speaking about the company’s performance, Alphabet CEO Sundar Pichai noted: “Our strong performance this quarter highlights the continued strength in Search and momentum in Cloud. We are innovating at every layer of the AI stack. Our long-standing infrastructure leadership and internal research teams position us well as the technology evolves and we pursue the many opportunities ahead.”
Google Cloud, which largely consists of consumption-based fees and subscriptions received for Google Cloud Platform services and Google Workspace, accounted for 12.2% of the company’s revenue. By comparison, AWS accounted for 17.4% of Amazon’s total revenue last quarter, but statistics suggest Amazon’s dominance in the cloud market could be three times that of Google’s.
Despite the strong performance, Alphabet shares fell about 2% after the announcement as investors wait to see how the rest of the Big Tech companies perform.