| Metric / Quarter                          | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|-------------------------------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| Paid Clicks Change (%)                    | **10%**  **[0001652044-23-000016_goog-20221231.htm:55]**  | **8%**  **[0001652044-23-000045_goog-20230331.htm:34]**  | **8%**  **[0001652044-23-000070_goog-20230630.htm:38]**  | **7%**  **[0001652044-23-000094_goog-20230930.htm:37]**  | **7%**  **[0001652044-24-000022_goog-20231231.htm:68]**  | **5%**  **[0001652044-24-000053_goog-20240331.htm:34]**  | **6%**  **[0001652044-24-000079_goog-20240630.htm:38]**  | **4%**  **[0001652044-24-000118_goog-20240930.htm:40]**  |
| Cost-per-Click Change (%)                 | **-1%**  **[0001652044-23-000016_goog-20221231.htm:55]**  | **-7%**  **[0001652044-23-000045_goog-20230331.htm:34]**  | **-3%**  **[0001652044-23-000070_goog-20230630.htm:38]**  | **4%**  **[0001652044-23-000094_goog-20230930.htm:37]**  | **1%**  **[0001652044-24-000022_goog-20231231.htm:68]**  | **8%**  **[0001652044-24-000053_goog-20240331.htm:34]**  | **7%**  **[0001652044-24-000079_goog-20240630.htm:38]**  | **8%**  **[0001652044-24-000118_goog-20240930.htm:40]**  |
| Cost-per-Impression Change (%)            | N/A | **-5%**  **[0001652044-23-000045_goog-20230331.htm:34]**  | **-5%**  **[0001652044-23-000070_goog-20230630.htm:38]**  | **1%**  **[0001652044-23-000094_goog-20230930.htm:38]**  | N/A | **14%**  **[0001652044-24-000053_goog-20240331.htm:34]**  | **13%**  **[0001652044-24-000079_goog-20240630.htm:38]**  | **15%**  **[0001652044-24-000118_goog-20240930.htm:40]**  |

e99f582ae76677c070d8d7c251595a567871efb4404c3e564d3de8affb34056a

Adjustments for Non-Cash Items [USD, Millions]

Stock-Based Compensation [USD, Millions]

Changes in Working Capital [USD, Millions]

Capital Expenditures (CapEx) [USD, Millions]

Proceeds from Debt [USD, Millions]

Repayments of Debt [USD, Millions]

Share Repurchases [USD, Millions]

Dividend Payments [USD, Millions]

Net Change in Cash [USD, Millions]

d6d03d7ae646e3527c6e1c4932781ae7d37631eda45d36cec1273bf7fdde61ca

| Metric [USD Million] | Q4 2023 | Q3 2023 | Q2 2023 | Q1 2023 | Q4 2022 | Q3 2022 | Q2 2022 | Q1 2022 |
|----------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| United States        | **41,995**  **[0001652044-24-000014_googexhibit991q42023.htm:7]**  | **36,354**  **[0001652044-23-000094_goog-20230930.htm:11]**  | **35,073**  **[0001652044-23-000070_goog-20230630.htm:11]**  | **32,864**  **[0001652044-23-000045_goog-20230331.htm:10]**  | N/A | N/A | N/A | N/A |
| EMEA                 | **25,010**  **[0001652044-24-000014_googexhibit991q42023.htm:7]**  | **22,661**  **[0001652044-23-000094_goog-20230930.htm:11]**  | **22,289**  **[0001652044-23-000070_goog-20230630.htm:11]**  | **21,078**  **[0001652044-23-000045_goog-20230331.htm:10]**  | N/A | N/A | N/A | N/A |
| APAC                 | **13,979**  **[0001652044-24-000014_googexhibit991q42023.htm:7]**  | **13,126**  **[0001652044-23-000094_goog-20230930.htm:11]**  | **12,728**  **[0001652044-23-000070_goog-20230630.htm:11]**  | **11,681**  **[0001652044-23-000045_goog-20230331.htm:10]**  | N/A | N/A | N/A | N/A |
| Other Americas       | **5,176**  **[0001652044-24-000014_googexhibit991q42023.htm:7]**   | **4,553**  **[0001652044-23-000094_goog-20230930.htm:11]**   | **4,511**  **[0001652044-23-000070_goog-20230630.htm:11]**   | **4,080**  **[0001652044-23-000045_goog-20230331.htm:10]**   | N/A | N/A | N/A | N/A |
| Total Revenue        | **86,160**  **[0001652044-24-000014_googexhibit991q42023.htm:7]**  | **76,693**  **[0001652044-23-000094_goog-20230930.htm:11]**  | **74,604**  **[0001652044-23-000070_goog-20230630.htm:11]**  | **69,787**  **[0001652044-23-000045_goog-20230331.htm:10]**  | N/A | N/A | N/A | N/A |

cfb032575fadaeda2db859840f04da93dff335b95249d00de178d3fdabb9183f

Total Revenue [USD, Millions]

Cost of Goods Sold (COGS) [USD, Millions]

SG&A [USD, Millions]

R&D [USD, Millions]

D&A [USD, Millions]

Interest Expense [USD, Millions]

Operating Income (EBIT) [USD, Millions]

Net Income [USD, Millions]

EPS - Basic [USD, Units]

EPS - Diluted [USD, Units]

a196d532fae4efa4943c255a07b16488fa2561871a88580214c48e328fc55a02

| Segment | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|---------|---------|---------|---------|---------|---------|---------|---------|---------|
| **Google Services** ($ billion) | 67.8  **[GOOGL_3226570_6]** **[GOOGL_3226570_6]**  | 61.961  **[0001652044-23-000041_googexhibit991q12023.htm:0]** **[0001652044-23-000041_googexhibit991q12023.htm:0]**  | 66.3  **[GOOGL_3385392_8]** **[GOOGL_3385392_8]** **[GOOGL_3255406_6]** **[0001652044-23-000067_googexhibit991q22023.htm:0]**  | 67.986  **[0001652044-23-000088_googexhibit991q32023.htm:0]** **[0001652044-23-000088_googexhibit991q32023.htm:0]**  | 76.3  **[GOOGL_3371150_7]** **[GOOGL_3371150_7]**  | 70.4  **[GOOGL_3380815_7]** **[0001652044-24-000047_googexhibit991q12024.htm:0]** **[0001652044-24-000047_googexhibit991q12024.htm:5]** **[GOOGL_3380815_7]** **[0001652044-24-000047_googexhibit991q12024.htm:0]**  | 73.9  **[GOOGL_3393969_8]** **[0001652044-24-000076_googexhibit991q22024.htm:0]** **[0001652044-24-000079_goog-20240630.htm:31]** **[GOOGL_3393969_8]** **[0001652044-24-000076_googexhibit991q22024.htm:0]** **[0001652044-24-000079_goog-20240630.htm:31]** **[0001652044-24-000079_goog-20240630.htm:37]**  | 76.5  **[GOOGL_3404433_7]** **[GOOGL_3404433_7]** **[GOOGL_3404433_8]** **[0001652044-24-000115_googexhibit991q32024.htm:0]**  |
| **Google Cloud** ($ billion) | 7.3  **[0001652044-23-000013_googexhibit991q42022.htm:0]** **[GOOGL_3226570_6]** **[0001652044-23-000013_googexhibit991q42022.htm:0]** **[0001652044-23-000013_googexhibit991q42022.htm:4]**  | 7.454  **[0001652044-23-000041_googexhibit991q12023.htm:0]** **[0001652044-23-000041_googexhibit991q12023.htm:0]**  | 8.0  **[GOOGL_3255406_6]** **[GOOGL_3385392_8]**  | 8.411  **[0001652044-23-000088_googexhibit991q32023.htm:0]** **[0001652044-23-000088_googexhibit991q32023.htm:0]**  | 9.2  **[GOOGL_3371150_7]** **[0001652044-24-000014_googexhibit991q42023.htm:0]** **[0001652044-24-000014_googexhibit991q42023.htm:4]** **[GOOGL_3371150_7]** **[0001652044-24-000014_googexhibit991q42023.htm:0]**  | 9.6  **[GOOGL_3380815_7]** **[GOOGL_3380815_7]**  | 10.3  **[GOOGL_3393969_8]** **[GOOGL_3393969_8]**  | 11.4  **[GOOGL_3404433_7]** **[0001652044-24-000115_googexhibit991q32024.htm:0]** **[0001652044-24-000118_goog-20240930.htm:33]** **[GOOGL_3404433_7]**  |
| **Other Bets** ($ million) | 226  **[GOOGL_3226570_6]** **[0001652044-23-000013_googexhibit991q42022.htm:0]** **[0001652044-23-000013_googexhibit991q42022.htm:4]** **[0001652044-23-000013_googexhibit991q42022.htm:0]**  | 288  **[0001652044-23-000041_googexhibit991q12023.htm:0]** **[0001652044-23-000041_googexhibit991q12023.htm:0]**  | 285  **[GOOGL_3385392_8]** **[GOOGL_3255406_6]** **[0001652044-23-000067_googexhibit991q22023.htm:0]** **[0001652044-23-000067_googexhibit991q22023.htm:6]** **[GOOGL_3255406_6]**  | 297  **[0001652044-23-000088_googexhibit991q32023.htm:0]** **[0001652044-23-000088_googexhibit991q32023.htm:0]**  | 657  **[0001652044-24-000014_googexhibit991q42023.htm:0]** **[GOOGL_3371150_7]** **[0001652044-24-000014_googexhibit991q42023.htm:0]**  | 495  **[0001652044-24-000047_googexhibit991q12024.htm:0]** **[0001652044-24-000047_googexhibit991q12024.htm:0]**  | 365  **[0001652044-24-000076_googexhibit991q22024.htm:0]** **[0001652044-24-000076_googexhibit991q22024.htm:0]**  | 388  **[0001652044-24-000115_googexhibit991q32024.htm:0]** **[GOOGL_3404433_8]**  |
| **Hedging Gains (Losses)** ($ million) | N/A | 84  **[0001652044-23-000041_googexhibit991q12023.htm:0]** **[0001652044-23-000041_googexhibit991q12023.htm:0]**  | N/A | (1)  **[0001652044-23-000088_googexhibit991q32023.htm:0]** **[0001652044-23-000088_googexhibit991q32023.htm:0]**  | N/A | N/A | N/A | 17  **[GOOGL_3404433_7]** **[0001652044-24-000115_googexhibit991q32024.htm:0]** **[0001652044-24-000118_goog-20240930.htm:33]** **[0001652044-24-000115_googexhibit991q32024.htm:0]**  |

4bc13bea6d215525de353fd8d10c45da18b953ba068b8170055f176a6e940589

Alphabet Inc., the parent company of Google, operates as a collection of businesses with Google being the largest. The company reports its operations in three segments: Google Services, Google Cloud, and Other Bets. Alphabet Inc. generates revenue primarily through advertising, consumer subscriptions, and sales of apps and devices, with Google Services accounting for the majority of its revenue **[0001652044-24-000063_googexhibit101-2023.htm:1]** **[0001652044-24-000022_goog-20231231.htm:125]** **[0001652044-24-000118_goog-20240930.htm:33]**. Google Cloud provides infrastructure and platform services for enterprise customers, while Other Bets includes emerging businesses like Waymo and Wing, focusing on healthcare-related and internet services **[0001652044-24-000063_googexhibit101-2023.htm:1]** **[0001652044-24-000022_goog-20231231.htm:125]**.

1. **Google Services** - Encompasses products like ads, Android, Chrome, devices, Google Maps, Google Play, Search, and YouTube, generating revenue through advertising, consumer subscriptions, and sales of apps and devices **[0001652044-24-000063_googexhibit101-2023.htm:1]** **[0001652044-24-000022_goog-20231231.htm:125]** **[0001652044-24-000118_goog-20240930.htm:33]**.
   - **Advertising** - Drives significant revenue through platforms like Google Search and YouTube **[0001652044-24-000063_googexhibit101-2023.htm:1]** **[0001652044-24-000022_goog-20231231.htm:125]**.
   - **Consumer Subscriptions** - Includes services like YouTube TV and YouTube Music **[0001652044-24-000063_googexhibit101-2023.htm:1]** **[0001652044-24-000022_goog-20231231.htm:125]**.
2. **Google Cloud** - Provides infrastructure, platform services, and collaboration tools for enterprise customers, contributing to revenue through consumption-based fees and subscriptions **[0001652044-24-000063_googexhibit101-2023.htm:1]** **[0001652044-24-000022_goog-20231231.htm:125]**.
3. **Other Bets** - Comprises emerging businesses such as Waymo and Wing, generating revenue primarily from healthcare-related services and internet services **[0001652044-24-000063_googexhibit101-2023.htm:1]** **[0001652044-24-000022_goog-20231231.htm:125]**.

c777089ba3125f9502ae1ec2de31d3674236435bae50578f830337d05df19dc9

d259fd15d52e4a8d2ae85f513140139bf5c16ccef6acbd67a437c1b57c3306ad

e95ad5356ee137085d27f5daea658b21331551e361bc6395cce9732c6ba862b4

- Total Revenue: $96,469 million (+12% YoY)  **[0001652044-25-000010_googexhibit991q42024.htm:3]** **[0001652044-25-000010_googexhibit991q42024.htm:7]** **[0001652044-25-000010_googexhibit991q42024.htm:4]** **[0001652044-25-000010_googexhibit991q42024.htm:0]** **[0001652044-25-000010_googexhibit991q42024.htm:9]**   
- Operating Income: **$30,972 million (+31% YoY)**  **[0001652044-25-000010_googexhibit991q42024.htm:3]** **[0001652044-25-000010_googexhibit991q42024.htm:0]**   
- Net Income: $26,536 million (+28% YoY)  **[0001652044-25-000010_googexhibit991q42024.htm:3]** **[0001652044-25-000010_googexhibit991q42024.htm:4]** **[0001652044-25-000010_googexhibit991q42024.htm:0]**   
- United States Revenue: $47,375 million (+13% YoY)  **[0001652044-25-000010_googexhibit991q42024.htm:7]**   
- EMEA Revenue: $28,184 million (+13% YoY)  **[0001652044-25-000010_googexhibit991q42024.htm:7]**   
- APAC Revenue: $15,156 million (+8% YoY)  **[0001652044-25-000010_googexhibit991q42024.htm:7]**   
- Other Americas Revenue: $5,734 million (+11% YoY)  **[0001652044-25-000010_googexhibit991q42024.htm:7]**   

b45249c662b9f15b12ba7dabe527d31af42d3331c3a57397ecb4d29b036369b9

1. Google Cloud's operating margins have improved to **17%** this quarter, but competitors in the industry have materially higher margins closer to **30%**; what specific steps are you taking to further improve cloud margins, and how confident are you that you can match or exceed competitor margins in the future?  **[GOOGL_3404433_16]** 

2. Given the significant investments in AI and technical infrastructure leading to increased depreciation and expenses, how do you plan to balance these costs with the need for cost discipline and delivering profit growth, especially with anticipated headwinds in Q4 revenue due to hardware launch pull-forwards?  **[GOOGL_3404433_9]** 

3. With YouTube Shorts reaching over **70 billion** daily views and the monetization gap with traditional in-stream content narrowing, what strategies are you implementing to further accelerate monetization of Shorts, and how significant do you expect Shorts to be in driving YouTube's overall ad revenue growth?  **[GOOGL_3404433_12]** 

4. As Waymo expands and serves over **150,000** paid rides weekly, can you provide more details on the financial performance and the path to profitability for Waymo, including timelines and how it will impact Alphabet's overall financials?  **[GOOGL_3404433_4]** 

5. With the introduction of AI-enabled search features and products powered by large language models like Gemini, how do you plan to monetize these new experiences without cannibalizing traditional search advertising revenues, and what are the potential risks and constraints to scaling these AI innovations across your vast user base?  **[GOOGL_3404433_10]** 

dcdb60200e3366da3a02c9d7a2607cd20f47de7592bc4cd7e6d050b1c11711a1

- General purpose search engines and information services  **[0001652044-24-000022_goog-20231231.htm:12]** 
- Vertical search engines and e-commerce providers for queries related to travel, jobs, and health  **[0001652044-24-000022_goog-20231231.htm:12]** 
- Online advertising platforms and networks  **[0001652044-24-000022_goog-20231231.htm:12]** 
- Other forms of advertising, such as billboards, magazines, newspapers, radio, and television  **[0001652044-24-000022_goog-20231231.htm:12]** 
- Digital content and application platform providers  **[0001652044-24-000022_goog-20231231.htm:12]** 
- Providers of enterprise cloud services  **[0001652044-24-000022_goog-20231231.htm:12]** 
- Developers and providers of AI products and services  **[0001652044-24-000022_goog-20231231.htm:12]** 
- Companies that design, manufacture, and market consumer hardware products, including businesses that have developed proprietary platforms  **[0001652044-24-000022_goog-20231231.htm:12]** 
- Providers of digital video services  **[0001652044-24-000022_goog-20231231.htm:12]** 
- Social networks, which users may rely on for product or service referrals  **[0001652044-24-000022_goog-20231231.htm:12]** 
- Providers of workspace communication and connectivity products  **[0001652044-24-000022_goog-20231231.htm:12]** 
- Digital assistant providers  **[0001652044-24-000022_goog-20231231.htm:12]** 

203b3f1b8bc20e99d2f06a19a253934a7997da74a58b4a744c47d616976da5e8

Google Services

- Google Search & Other

- YouTube Ads

- Google Network

- Google Advertising Total

- Google Subscriptions, Platforms, and Devices

- Google Other

Google Cloud

Other Bets

Hedging Gains (Losses)

Total Revenues

79f4e2a98b1e9a27ab11a2f6987d1e740ba6097cb6503c7f3649ee8b1caa1727

80c63efa41e099ebd6116a16ec2d33e6816bb7135ef36dfdd4ca377cd6a8126a

Paid Clicks Change (%)

Cost-per-Click Change (%)

Cost-per-Impression Change (%)

96a2f150f29d48041577d30c20b6ae56bb4d5e27f1d78eab9597bbccffcd71df

United States

EMEA

APAC

Other Americas

United Kingdom

Rest of the World

Hedging gains (losses)

Total Revenue

44af6e1979122f831cbbcab583b251b45af170adc0518b0a5cdcc44f6f532d54

ce29e6c4397dd48b66f0a3e6ca220f6c040ea3a3443ba8407ae2ef55a187a619

50bf08e1f8e33bb8020df8923d713b4ba5268f9bc7a2fd705c61e56db6a43369

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

### Q3 2024 Earnings Call
   - **Issued Period**: Q3 2024
   - **Guided Period**: Q4 2024
   - **Guidance**:
     - **Revenue Growth**: Continued impact on advertising revenue growth due to strong performance in the second half of 2023, particularly from APAC-based retailers. Headwind expected in subscription platforms and devices revenue due to the pull forward of Made by Google launches into Q3 2024  **[GOOGL_3404433_9]** .
     - **Expenses**: Increase due to depreciation and investments in technical infrastructure, with a slight benefit from cost revenue associated with devices  **[GOOGL_3404433_9]** .
     - **Capital Expenditures (CapEx)**: Expected to be similar to Q3 at $13 billion, with an increase anticipated in 2025  **[GOOGL_3404433_8]** **[GOOGL_3404433_11]** .
     - **Cost Structure and Efficiency**: Focus on optimizing headcount growth, physical footprint, and improving efficiencies in technical infrastructure  **[GOOGL_3404433_9]** .

### Q2 2024 Earnings Call
   - **Issued Period**: Q2 2024
   - **Guided Period**: Q3 2024 and FY 2024
   - **Guidance**:
     - **Google Services**: Operating margins to reflect increased depreciation and expenses due to technical infrastructure investments and Pixel launch  **[GOOGL_3393969_13]** .
     - **Operating Margin**: Full-year 2024 operating margin expansion expected, with Q3 reflecting increased costs  **[GOOGL_3393969_9]** .
     - **Headcount**: Slight increase expected in Q3 due to new graduates  **[GOOGL_3393969_9]** .
     - **Capital Expenditures (CapEx)**: Expected to be at or above Q1 level of $12 billion, with variability due to cash payment timing  **[GOOGL_3393969_9]** .
     - **Cloud Segment**: Continued investment in AI infrastructure and generative AI solutions  **[GOOGL_3393969_18]** .

### Q1 2024 Earnings Call
   - **Issued Period**: Q1 2024
   - **Guided Period**: FY 2024
   - **Guidance**:
     - **Google Services**: Strong momentum in Ads, particularly Search and YouTube, with impacts from APAC-based retailers  **[GOOGL_3380815_8]** .
     - **Subscriptions, Platforms, and Devices**: Growth in subscriptions, with impacts from Sunday Ticket revenue timing and YouTube TV price increase  **[GOOGL_3380815_8]** .
     - **Google Cloud**: Strong demand for GCP infrastructure and Workspace tools, with a focus on profitable growth  **[GOOGL_3380815_8]** .
     - **Foreign Exchange and Leap Year Impact**: Larger FX headwind expected in Q2 2024, with Q1 benefiting from a leap year  **[GOOGL_3380815_8]** .
     - **Operating Margins**: Aim for full-year 2024 margin expansion  **[GOOGL_3380815_8]** .
     - **Capital Expenditures (CapEx)**: Expected to be at or above Q1 level of $12 billion, driven by server and data center investments  **[GOOGL_3380815_8]** .

### Q4 2023 Earnings Call
   - **Issued Period**: Q4 2023
   - **Guided Period**: FY 2024
   - **Guidance**:
     - **Capital Expenditures (CapEx)**: Expected to be notably larger than in 2023, driven by AI-related investments  **[GOOGL_3371150_14]** .
     - **Hiring and Severance Expenses**: Slower hiring pace with $700 million in severance expenses in Q1 2024  **[GOOGL_3371150_10]** .
     - **Subscription Growth**: Confidence in continued strong growth in subscription services like YouTube Premium, YouTube TV, and Google One  **[GOOGL_3371150_1]** .

b571b0a9295274171911642e42d6109b77e842f2f245f6e11b46bbbc5508f068

| Name               | Position                                                                 | Start Date          | Short Bio                                                                                                                                                                                                                                                                                                                                 |
|--------------------|--------------------------------------------------------------------------|---------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Sundar Pichai      | Chief Executive Officer, Alphabet and Google                             | October 2015 (Google), December 2019 (Alphabet) | **Sundar Pichai** joined Google in **2004** and has held various leadership roles, including Senior Vice President of Products and Senior Vice President of Android, Chrome, and Apps. He became CEO of Google in **October 2015** and CEO of Alphabet in **December 2019**. He has been a director since **2017**  **[0001308179-24-000612_lgoog2024_def14a.htm:19]** **[0001308179-23-000736_lgoog2023_def14a.htm:18]** . |
| Ruth M. Porat      | President and Chief Investment Officer, Alphabet and Google              | September 2023      | **Ruth M. Porat** has been the Senior Vice President and Chief Financial Officer of Google since May 2015 and held the same title at Alphabet since October 2015. She was previously the Executive Vice President and Chief Financial Officer of Morgan Stanley  **[0001308179-24-000612_lgoog2024_def14a.htm:23]** .                                                                 |
| Anat Ashkenazi     | Chief Financial Officer and Senior Vice President, Alphabet and Google   | July 31, 2024       | **Anat Ashkenazi** joined Alphabet Inc. as the Chief Financial Officer and Senior Vice President on **July 31, 2024**. She was previously associated with Eli Lilly  **[0000950170-24-094474_xslF345X02/ownership.xml:0]** **[GOOGL_3392064_3]** .                                                                                                                                                             |
| Prabhakar Raghavan | Chief Technologist, Google LLC                                           | October 17, 2024    | **Prabhakar Raghavan** has been with Google since March 2012. He served as Senior Vice President, Knowledge and Information, overseeing Google Search, Assistant, Geo, Ads, Commerce, and Payments products. He became Chief Technologist of Google LLC on **October 17, 2024**  **[0001193125-24-238769_d627891d8k.htm:1]** **[0001308179-24-000612_lgoog2024_def14a.htm:23]** .                                                  |
| Philipp Schindler  | Senior Vice President, Chief Business Officer, Google                    | August 2015         | **Philipp Schindler** oversees Google's and YouTube's sales activities, technical and consumer support, partnership and business development teams, and country operations. He previously served as Vice President of Global Sales and Operations  **[0001308179-24-000612_lgoog2024_def14a.htm:24]** **[0001308179-23-000736_lgoog2023_def14a.htm:24]** .                                                                                 |
| Kent Walker        | President, Global Affairs, Chief Legal Officer and Secretary, Alphabet and Google | November 2021 (President, Global Affairs), January 2020 (Secretary) | **Kent Walker** joined Google in 2006 and has led the company's advocacy on competition, content, copyright, and privacy. He became President, Global Affairs, and Chief Legal Officer in November 2021 and Secretary of Alphabet in January 2020  **[0001308179-24-000612_lgoog2024_def14a.htm:24]** **[0001308179-23-000736_lgoog2023_def14a.htm:24]** .                                                                                 |

9382758fb82957d8930559ea88ae5c88a92a0cf24bc6f0f6da40427afae17c45

| Program Details          | Program 1          | Program 2          |
|--------------------------|--------------------|--------------------|
| Approval Date            | April 2023  **[0001652044-24-000118_goog-20240930.htm:29]** **[0001652044-24-000118_goog-20240930.htm:49]**   | April 2024  **[0001652044-24-000118_goog-20240930.htm:29]** **[0001652044-24-000118_goog-20240930.htm:49]**   |
| End Date/Duration        | Completed during Q3 2024  **[0001652044-24-000118_goog-20240930.htm:29]** **[0001652044-24-000118_goog-20240930.htm:49]**  | Not specified  **[0001652044-24-000118_goog-20240930.htm:29]** **[0001652044-24-000118_goog-20240930.htm:49]**  |
| Total additional amount  | **$70.0 billion**  **[0001652044-24-000118_goog-20240930.htm:29]** **[0001652044-24-000118_goog-20240930.htm:49]**  | **$70.0 billion**  **[0001652044-24-000118_goog-20240930.htm:29]** **[0001652044-24-000118_goog-20240930.htm:49]**  |
| Remaining authorization amount | $0  **[0001652044-24-000118_goog-20240930.htm:29]** **[0001652044-24-000118_goog-20240930.htm:49]**      | **$59.7 billion**  **[0001652044-24-000118_goog-20240930.htm:29]** **[0001652044-24-000118_goog-20240930.htm:49]**  |
| Details                  | Completed  **[0001652044-24-000118_goog-20240930.htm:29]** **[0001652044-24-000118_goog-20240930.htm:49]**    | No expiration date  **[0001652044-24-000118_goog-20240930.htm:29]** **[0001652044-24-000118_goog-20240930.htm:49]**  |

497f190b9defbfbe8abe94cb1f389c51d4aa45bd925d9e1fbaff141a67a1589c

**Quarterly guidance for Q4 2024:**
- **Revenue Growth**: Continued impact on advertising revenue growth due to strong performance in the second half of 2023, with subscription and devices headwinds  **[GOOGL_3404433_9]**  (no prior guidance)  
- **Expenses**: Increase due to depreciation and investments in technical infrastructure, with a slight benefit from cost revenue associated with devices  **[GOOGL_3404433_9]**  (no prior guidance)  
- **Capital Expenditures (CapEx)**: $13B  **[GOOGL_3404433_8]** **[GOOGL_3404433_11]**  (raised from at or above $12B  **[GOOGL_3393969_9]** )  
- **Cost Structure and Efficiency**: Focus on optimizing headcount growth, physical footprint, and improving efficiencies in technical infrastructure  **[GOOGL_3404433_9]**  (no prior guidance)  

bfd700a7a49d36fd4d0dbf9c989c4825d1e2568b7bfa09e9822ec340d67d9557

| Name               | Start Date | End Date | Reason for Change |
|--------------------|------------|----------|-------------------|
| Ernst & Young LLP  | 1999  **[0001652044-24-000022_goog-20231231.htm:85]**  | Present  | Current auditor   |

ae170b8cc74265e29f98d3fa0aeddf66d4151d5783e206d18a0db20c42a17767

7bd3786d59c3dfe5fc31637e0e8f450aad8e43de6e7ccf5677538f1bf0be53cb

- Total Revenue: $88,268 million (+15% YoY)  **[0001652044-23-000094_goog-20230930.htm:11]** **[0001652044-24-000118_goog-20240930.htm:41]**   
- Google Services: $76,510 million (+13% YoY)  **[0001652044-23-000094_goog-20230930.htm:31]** **[0001652044-24-000118_goog-20240930.htm:33]** **[0001652044-24-000118_goog-20240930.htm:11]**   
- Google Cloud: $11,353 million (**+35%** YoY)  **[0001652044-23-000094_goog-20230930.htm:31]** **[0001652044-24-000118_goog-20240930.htm:33]** **[0001652044-24-000118_goog-20240930.htm:11]**   
- Net Income: $26,301 million (**+33%** YoY)  **[0001652044-23-000094_goog-20230930.htm:5]** **[0001652044-24-000118_goog-20240930.htm:5]** **[0001652044-24-000118_goog-20240930.htm:31]**   
- United States: $43,139 million (+19% YoY)  **[0001652044-23-000094_goog-20230930.htm:11]** **[0001652044-24-000118_goog-20240930.htm:41]**   
- EMEA: $25,472 million (+12% YoY)  **[0001652044-23-000094_goog-20230930.htm:11]** **[0001652044-24-000118_goog-20240930.htm:41]**   
- APAC: $14,547 million (+11% YoY)  **[0001652044-23-000094_goog-20230930.htm:11]** **[0001652044-24-000118_goog-20240930.htm:41]**   
- Other Americas: $5,093 million (+12% YoY)  **[0001652044-23-000094_goog-20230930.htm:11]** **[0001652044-24-000118_goog-20240930.htm:41]**   

88bc54bcbb061fac9cc543f7b9dfcf8cbbbcf80901a9c0b93698a0badd53b070

1. **AI's Impact on Search**  
   **Q:** How will AI evolve Search to boost engagement and monetization?  
   **A:** Sundar emphasized that AI is a significant step forward in Search's evolution, leading to higher satisfaction and usage. They plan to integrate AI in more powerful, multimodal ways, expanding use cases through innovations like Lens and Project Astra. New experiences will roll out throughout 2025, unlocking further opportunities with AI.  **[GOOGL_3414254_10]** 

2. **Cloud Growth and Capacity Constraints**  
   **Q:** Were Cloud revenues impacted by capacity constraints, and what's being done?  
   **A:** Anat stated that Google Cloud revenue grew to **$12 billion** with **30% year-over-year growth**, but they exited 2024 with more demand than available capacity. They are working to bring more capacity online, increasing CapEx investments in 2024 and continuing in 2025 to meet strong AI product demand.  **[GOOGL_3414254_11]** 

3. **Long-Term CapEx Intensity**  
   **Q:** How do you view long-term capital intensity and returns on investments?  
   **A:** Anat emphasized managing capital expenditures responsibly with a rigorous internal governance process. They prioritize cost-efficient ways to optimize data centers, using self-designed facilities and customized TPUs for superior performance and CapEx efficiency. Investments aim to meet customer demand while ensuring strong returns.  **[GOOGL_3414254_13]** 

4. **Monetization of AI Overviews**  
   **Q:** Are ads in AI overviews monetizing on par with existing Search?  
   **A:** Philipp confirmed that ads within AI overviews are monetizing at approximately the same rate as traditional Search ads. This strong performance provides a solid foundation for further innovation in AI-integrated advertising.  **[GOOGL_3414254_11]** 

5. **Consumer Agents and Search Future**  
   **Q:** How will AI consumer agents affect Google Search?  
   **A:** Sundar believes that advancements in AI expand the opportunity space rather than creating conflict. The capabilities of models like Gemini 2.0 enable more agentic experiences, allowing users to act on information needs more deeply. He sees room for both consumer agents and Search to flourish with new use cases.  **[GOOGL_3414254_14]** 

6. **AI Cost Curve and Custom Silicon**  
   **Q:** How does custom silicon impact AI costs from infrastructure to applications?  
   **A:** Sundar noted that models like Gemini 2.0 Flash are leading in cost, performance, and latency, partly due to full-stack development and end-to-end optimization. Their focus on cost per query and efficient inference supports scaling AI use cases as costs decrease, enhancing feasibility and driving extraordinary opportunities.  **[GOOGL_3414254_12]** 

7. **Inference Efficiency Advantage**  
   **Q:** Is Google more efficient in inference costs compared to peers?  
   **A:** Sundar explained that Google's end-to-end stack approach and TPU efforts offer meaningful advantages in cost, latency, and performance. This efficiency is reflected in their ability to offer attractive value propositions like Flash models, doubling developers to **4.4 million** in six months and increasing Vertex usage by **20x** last year.  **[GOOGL_3414254_15]** 

8. **Growing Gemini Usage and Monetization**  
   **Q:** What's the plan to grow Gemini usage and monetize it?  
   **A:** Sundar highlighted strong momentum for Gemini, especially after releasing a dedicated iOS app and rolling out the 2.0 series models. Innovations like Gemini Live and Deep Research are boosting usage. Currently focusing on free tiers and subscriptions, they plan to prioritize user experience before introducing native ad concepts over time.  **[GOOGL_3414254_17]** 

9. **AI's Impact on Shopping Behavior**  
   **Q:** How are AI tools affecting shopping behavior and monetization?  
   **A:** Philipp discussed the AI-driven transformation of Google Shopping, leading to **13%** more daily active users in December year-over-year in the U.S. The new experience provides AI-generated briefs, personalized deals, and simplifies product research, enhancing user engagement and monetization opportunities.  **[GOOGL_3414254_13]** 

10. **Operational Efficiency Initiatives**  
    **Q:** Where are opportunities for further OpEx efficiencies excluding D&A?  
    **A:** Anat sees potential in technical infrastructure, managing headcount growth, optimizing real estate, and simplifying the organization. Investing in AI and Cloud remains a priority, while they leverage their own AI tools to enhance productivity, such as using AI for coding and running key processes.  **[GOOGL_3414254_10]** 

11. **Search Usage Trends with AI**  
    **Q:** Is Search usage accelerating with AI integration?  
    **A:** Sundar stated that overall Search metrics are healthy, with year-over-year growth. AI overviews have seen stronger growth, especially among younger users. He anticipates further growth as they innovate, making Search more interactive and enabling follow-up questions.  **[GOOGL_3414254_16]** 

12. **YouTube Content Mix and Margins**  
    **Q:** How does a shift to user-generated content affect YouTube usage and margins?  
    **A:** Philipp noted that YouTube ads saw healthy growth in Q4, driven by brand advertising and robust watch time, especially in shorts. They have a strong position with over **3 million** channels in the YouTube Partner Program. The focus on creators supports usage while potentially benefiting margins through content mix.  **[GOOGL_3414254_16]** 

13. **Financial Services Revenue Headwinds**  
    **Q:** How does lapping financial services strength affect Search revenue?  
    **A:** Anat explained that the prior year's strength was due to a structural step-up in the insurance segment within financial services. While not providing specific numbers for 2025, she is pleased with the strength across all verticals, including retail, and highlighted considerations like FX impact and one less day of revenue in Q1.  **[GOOGL_3414254_15]** 

0e2c9742a4e47dd980a85225cd8fc59ae5f6d7937d1527d6f26499c3a13f7bf9

54c5cf520f6300d8c8123867fa4d6f5cb487d4adeaa29bdf8d9968be221f2576

**Quarterly guidance for Q1 2025:**
- **CapEx**: $16B to $18B  **[GOOGL_3414254_9]**  (no prior guidance  **[GOOGL_3404433_8]** **[GOOGL_3404433_11]** )

**Annual guidance for FY 2025:**
- **CapEx**: $75B  **[GOOGL_3414254_9]**  (no prior numeric guidance  **[GOOGL_3404433_11]** )  
- **Depreciation**: Growth rate expected to accelerate in 2025  **[GOOGL_3414254_9]**  (no prior guidance  **[GOOGL_3404433_9]** **[GOOGL_3404433_8]** **[GOOGL_3404433_11]** )  
- **Headcount**: Some growth in key areas  **[GOOGL_3414254_9]**  (no prior guidance  **[GOOGL_3404433_9]** **[GOOGL_3404433_8]** **[GOOGL_3404433_11]** )

e7a20dbdf769e770a4947dd4b61bf045698b6520f5587b6f19f075fc2afda4db

Traffic Acquisition Cost (millions of USD)

Traffic Acquisition Cost Rate (percentage)

Number of employees (count)

Change in paid clicks for Google Search & other (percentage)

Change in cost-per-click for Google Search & other (percentage)

Change in impressions for Google Network (percentage)

Change in cost-per-impression for Google Network (percentage)

19b2a6a0d3e3b0bc5d96e9dab321ae3cf0705e6a1f816191fbecc41e14623600

876f43980c76763a3b4a72dd5db2cca37e8cd1f7ca3db96b3e63cafd10df5d9e

| Year  | Amount Due (in billions) | Debt Type                                   | Interest Rate (%)       | % of Total Debt                              |
|-------|--------------------------|---------------------------------------------|-------------------------|---------------------------------------------|
| 2024  | 1.0                      | Short-term commercial paper                | N/A                     | 6.8% = (1.0 / 14.785) * 100 **[0001652044-24-000118_goog-20240930.htm:49]** **[0001652044-24-000118_goog-20240930.htm:22]** |
| 2025  | 0.999                    | Current portion of long-term notes         | N/A                     | 6.8% = (0.999 / 14.785) * 100 **[0001652044-24-000118_goog-20240930.htm:22]**       |
| 2025  | 1.368                    | Current portion of finance leases & other  | N/A                     | 9.3% = (1.368 / 14.785) * 100 **[0001652044-24-000118_goog-20240930.htm:22]**       |
| 2025–2060 | 12.0                 | Long-term notes                            | 0.45–2.25 (coupon)      | 81.1% = (12.0 / 14.785) * 100 **[0001652044-24-000118_goog-20240930.htm:22]**       |

81a3dea299e809d9c769cd5bbcb2468a7f70fd3686c2a3ee81fc6cac86c7faa0

1d9aa4c21fe2127eca433e0a17775d533983428322a108726e05c14fa9484afa

1. **Operating Margins Sustainability**  
   **Q:** Can Google Services sustain current operating margins?  
   **A:** Ruth Porat explained that while recent operating margins benefited from cost reengineering efforts, future margins will reflect increased investments in technical infrastructure and higher expenses associated with product launches, such as the **Pixel**. However, she emphasized that the company expects to continue delivering full-year **2024 Alphabet operating margin expansion** relative to 2023.  **[GOOGL_3393969_13]** 

2. **AI Overviews Rollout and Monetization**  
   **Q:** How is the rollout of AI Overviews in Search progressing, and what about monetization?  
   **A:** Sundar Pichai stated that **AI Overviews have been rolled out in the U.S.**, with plans to expand to more countries and use cases throughout the year. He noted positive user feedback and emphasized a focus on quality. Philipp Schindler added that they will soon start **testing search and shopping ads within AI Overviews**, presenting new opportunities for advertisers and innovation in monetization.  **[GOOGL_3393969_13]** 

3. **AI Traction vs. Expectations and Cost Efficiencies**  
   **Q:** Where is AI adoption faster or slower than expected, and are there further cost efficiencies?  
   **A:** Sundar Pichai highlighted that on the consumer side, products like **Search** have seen positive enhancements with AI, but **monetization is something we would have to earn** over time. On the enterprise side, while models are converging on base capabilities, unlocking meaningful solutions requires further work. Ruth Porat discussed ongoing efforts to **durably reengineer the cost base** through product prioritization and organizational efficiency, citing recent unification of product teams to improve **velocity and efficiency**.  **[GOOGL_3393969_12]** 

4. **Cookies Decision and User Experience**  
   **Q:** Why did Google decide not to deprecate cookies, and what should we expect in Chrome?  
   **A:** Sundar Pichai stated that Google remains committed to improving **user privacy** in Chrome and believes **user choice is the best path forward** regarding third-party cookies. The company will continue investing in **privacy-enhancing technologies** while considering feedback from ecosystem stakeholders.  **[GOOGL_3393969_14]** 

5. **YouTube Growth Rates and AI Impact**  
   **Q:** What factors are behind differences in growth between Search and YouTube, and can AI reaccelerate YouTube growth?  
   **A:** Ruth Porat explained that **Search revenue** reflected broad-based growth, led by **retail followed by financial services**, while **YouTube growth was driven by brand followed by direct response**. The deceleration in YouTube's year-on-year revenue growth was due to tougher comparisons and timing issues. Sundar Pichai noted that future AI advancements, especially in **multimodal models**, will be relevant to YouTube and could drive growth over time.  **[GOOGL_3393969_14]** 

ab95d41e32f950f5b74bc709c1dc4a5d2c5dd7e1c6f52009ba4ba6d2dbec6c36

1. **DOJ Trial Impact on Search Contracts**  
   **Q:** How will DoJ trial affect search contracts with Apple, plans to mitigate?  
   **A:** Sundar stated they plan to vigorously defend against the DoJ trial and any proposals impacting search contracts, emphasizing their success comes from innovation and user choice. Even if contracts change, their strong foundation and user preference will help maintain market share.  **[GOOGL_3404433_13]** 

2. **Cloud Margins and Outlook**  
   **Q:** Can cloud margins match peers with 30% margins?  
   **A:** Anat acknowledged cloud margins reached **17%** this quarter, driven by scale and efficiency. While investments will continue, especially in AI infrastructure, they aim to drive further efficiencies to potentially match industry peers over time.  **[GOOGL_3404433_16]** 

3. **CapEx Spending and TPUs**  
   **Q:** How do TPUs influence CapEx spending versus peers?  
   **A:** Sundar explained owning TPUs provides best-in-class efficiency, positively influencing CapEx compared to peers. By investing in TPUs and GPUs and optimizing architecture, they manage CapEx while supporting AI growth.  **[GOOGL_3404433_11]** 

4. **AI Search Products Driving Growth**  
   **Q:** Which AI search products will boost growth in next 2-3 years?  
   **A:** Sundar highlighted innovations like Lens, AI overviews, and Gemini as key products expanding possibilities in search. He expects significant evolution in search over the next **12 months**, driven by AI, leading to durable multiyear growth.  **[GOOGL_3404433_10]** 

5. **Company-Wide Cost Efficiencies**  
   **Q:** Are there opportunities to improve margins further company-wide?  
   **A:** Anat emphasized ongoing efforts to drive efficiencies across the organization, including simplifying operations and using AI in processes. These efforts aim to offset increased investments, particularly in capital expenditures for AI infrastructure.  **[GOOGL_3404433_16]** 

6. **AI Overviews User Engagement and Monetization**  
   **Q:** How are AI overviews performing and monetizing?  
   **A:** Sundar noted strong user engagement with AI overviews, increasing overall search usage and satisfaction. Philipp added that monetization of AI overviews is approximately at the same rate as traditional search, providing a solid base for future innovation.  **[GOOGL_3404433_14]** 

7. **Waymo Expansion and Learnings**  
   **Q:** What are the learnings from Waymo's city expansions?  
   **A:** Sundar shared positive consumer adoption in Phoenix and San Francisco, with users appreciating safety and reliability. They are accelerating expansion to more cities, testing various models, and focusing on scaling for **2025** and beyond.  **[GOOGL_3404433_12]** 

8. **YouTube Monetization Trends**  
   **Q:** How are YouTube consumption and monetization evolving between long-form and Shorts?  
   **A:** Philipp reported Shorts watch time continues to grow, with over **70 billion** Shorts viewed daily. Monetization rates for Shorts are growing robustly, narrowing the gap with in-stream videos, especially in high-monetizing markets like the U.S..  **[GOOGL_3404433_12]** 

9. **Google Cloud Customers' Gen AI Adoption**  
   **Q:** Are sales cycles accelerating with Gen AI adoption in Cloud?  
   **A:** Sundar observed customers leaning into AI, seeing tangible ROI and bottom-line impact. As organizations understand more, they are adopting AI faster, setting up Google Cloud well for continued momentum into **2025**.  **[GOOGL_3404433_18]** 

10. **Advertisers Using PMax for Upper Funnel**  
    **Q:** Are advertisers adopting PMax for mid and upper funnel campaigns?  
    **A:** Philipp confirmed Performance Max is seeing success across advertisers for various marketing objectives, including mid and upper funnel campaigns. Demand Gen is also effective in inspiring consumers beyond initial awareness.  **[GOOGL_3404433_18]** 

11. **Organizational Changes for AI Innovation**  
    **Q:** How has Alphabet changed to advance AI innovation?  
    **A:** Sundar explained they've restructured to form new "synapses" that adapt better to AI opportunities. This includes enabling teams to consume model innovation effectively and move faster, setting up well for the year ahead.  **[GOOGL_3404433_15]** 

12. **Gemini Usage Milestones**  
    **Q:** How does Gemini usage compare to ChatGPT's users?  
    **A:** Sundar shared Gemini serves over **1 billion** users across products like search and Assistant on Android. They see strong momentum, with API volume increasing **14x** in six months, but specific user comparisons to ChatGPT were not provided.  **[GOOGL_3404433_13]** 

13. **Search Strategy: Separate Products vs. Integrated**  
    **Q:** Why not have separate agent and traditional search engines?  
    **A:** Sundar believes integrating new capabilities into search is better than having separate products. User behavior is evolving, and they aim to anticipate and stay ahead by naturally incorporating innovations into search.  **[GOOGL_3404433_17]** 

14. **Consumer Environment Trends**  
    **Q:** Insights on consumer health and trends in Q4?  
    **A:** Philipp observed broad-based strength across all verticals, with growth led by financial services and retail. There was a slight tailwind from election-related ad spend, more pronounced in YouTube ads.  **[GOOGL_3404433_17]** 

0afb65d68dd1933b61252e274c06ea8a83b91097413ddf18f6634d94e30b6514

- **Alphabet's increased capital expenditures could pressure free cash flow and margins.** Ruth Porat stated that quarterly **CapEx throughout the year will be roughly at or above the Q1 level of $12 billion**  **[GOOGL_3380815_11]** , driven by investments in technical infrastructure and AI capabilities. This significant spending may weigh on profitability, and **higher depreciation and expenses associated with increased CapEx could create headwinds**.  **[GOOGL_3380815_8]**
- **Challenges in Google Cloud's growth due to customer switching costs.** Sundar Pichai acknowledged that while there's interest in Google Cloud Platform, there are **significant barriers for customers switching to GCP**, saying **"there's definitely barriers in terms of people switching... that's an area where we are constantly investing to make it easier for our customers"**.  **[GOOGL_3380815_17]**  These challenges could limit GCP's ability to accelerate growth and capitalize on the large addressable market.
- **Uncertainty around monetization of new AI features in Search.** Despite positive signs, Sundar Pichai mentioned that monetization of AI in Search will **"play out over time"**, and while he is **"comfortable and confident"** about managing the transition, it remains an area to watch.  **[GOOGL_3380815_19]**  The introduction of AI overviews and generative AI features could impact traditional advertising models, and any delays or issues in effective monetization may affect future revenues.

fe4fe5f78335fac05190a83020cb93fe5275400c4bf235ab75e84aa5b19ac5da

- **Increasing Capital Expenditures (CapEx) may pressure margins and free cash flow**: Alphabet expects CapEx to increase in 2025 due to substantial investments in technical infrastructure, such as servers (including TPUs and GPUs), data centers, and networking equipment. This could create headwinds associated with higher annual run rates, depreciation, and non-capitalized construction costs, potentially impacting profitability despite efficiency efforts.  **[GOOGL_3404433_11]** **[GOOGL_3404433_16]**
- **Legal challenges from the Department of Justice pose risks to core search business**: Ongoing litigation with the DOJ could lead to the voiding of key search distribution agreements, such as the Apple ISA contract and Android pre-install contracts. If these are voided, Google may lose default search status on major platforms, potentially reducing search traffic and ad revenue.  **[GOOGL_3404433_13]**
- **Significant ongoing investments required in Google Cloud may limit margin expansion**: While Google Cloud's operating margin has improved to **17%**, the need for continuous investments in servers and infrastructure to meet customer demand could present headwinds to further margin expansion. These investments lead to increased costs in the form of depreciation and construction expenses, which may offset efficiency gains.  **[GOOGL_3404433_16]**

7acdce573427eed15b5565ef1538137e7240bf74a85443dafb57126d859c585d

- **Increasing competition in Search from AI tools** may impact Google's query volumes, as analysts express concerns over the use of competitive AI tools as an alternative to Search, potentially affecting Google's core business.  **[GOOGL_3371150_14]**
- **Capital expenditures are expected to rise significantly**, with **2024 CapEx expected to be notably larger than 2023**, which may raise concerns about cost management and financial discipline.  **[GOOGL_3371150_14]**
- **Continued workforce restructuring and cost-cutting measures**, including an estimated **$700 million in severance-related expenses** in Q1, indicate challenges in managing expenses and could affect employee morale and future growth.  **[GOOGL_3371150_10]**

8c19c14a2412137595ce52fd61ecba171869f0a3c937df0b288681bfd6ff6c3e

1. **Competitive AI and Search**  
   **Q:** Are competitive AI tools affecting Search query volumes?  
   **A:** Sundar Pichai stated that while users have many information choices and expectations evolve, Google's continuous innovation keeps them ahead. Generative AI is a new tool, but delivering high-quality experiences across diverse search needs remains their focus.  **[GOOGL_3371150_14]** 

2. **Cloud Growth Volatility**  
   **Q:** What explains the volatility in Google Cloud's growth?  
   **A:** Sundar Pichai attributed the cloud growth volatility to a combination of factors, including excitement around AI solutions and reduced cost optimizations. Over **70%** of GenAI unicorns use Google Cloud, and they expect AI innovation to drive growth in 2024.  **[GOOGL_3371150_16]** 

3. **CapEx Guidance**  
   **Q:** Should we expect CapEx to stay at the current elevated run rate into 2024?  
   **A:** Ruth Porat confirmed that the fourth quarter CapEx of **$11 billion** was primarily technical infrastructure investment with no one-time items. She noted that they expect 2024 full-year CapEx to be notably larger than 2023.  **[GOOGL_3371150_14]** 

4. **Cost Structure Reengineering**  
   **Q:** Can you assess your progress in reengineering the cost structure?  
   **A:** Ruth Porat expressed satisfaction with the ongoing efforts to durably reengineer the cost base, highlighting product prioritization and organizational efficiency. She mentioned continued slower hiring pace and a severance-related expense of roughly **$700 million** in the first quarter.  **[GOOGL_3371150_10]** 

5. **Search RPM Growth**  
   **Q:** How confident are you in Google's ability to drive Search RPM growth?  
   **A:** Sundar Pichai is confident in their focus on ads quality and delivering ROI to advertisers. He believes AI offers opportunities for both organic search and monetization, and is excited about what's ahead.  **[GOOGL_3371150_15]** 

6. **YouTube Shorts Monetization**  
   **Q:** Are there still monetization challenges with YouTube Shorts?  
   **A:** Philipp Schindler stated that Shorts monetization is progressing nicely, with over **2 billion** monthly users and **70 billion** daily views. Since introducing revenue sharing, total creator earnings from Shorts have increased every month.  **[GOOGL_3371150_12]** 

7. **AI Advertising Tools Impact**  
   **Q:** What is the impact of AI advertising tools on revenue growth?  
   **A:** Philipp Schindler highlighted progress with AI-powered advertising products like Performance Max (PMax), noting significant opportunities to deliver ROI at scale. They are not restructuring because AI is taking away roles but are adjusting resources to focus on growth channels.  **[GOOGL_3371150_9]** 

8. **Supporting SMB Advertisers**  
   **Q:** How are you enabling SMBs to advertise and expand revenue?  
   **A:** Philipp Schindler emphasized that AI-powered solutions are leveling the playing field for SMBs, making workflows easier and improving ROI. They are pleased with the progress and see AI simplifying processes for SMB advertisers.  **[GOOGL_3371150_13]** 

cca0360efafec58c4d05b3db9e567554206a5de70f8c3d09f7f4a24b4d136f65

1. **CapEx Guidance**  
   **Q:** Should we expect CapEx to stay above $12B this year?  
   **A:** Ruth Porat stated that quarterly CapEx throughout the year will be roughly at or above **$12 billion**  **[GOOGL_3380815_11]** , reflecting investments in technical infrastructure for AI and Cloud growth.  **[GOOGL_3380815_11]**  Nearly all CapEx was in technical infrastructure, with less than **10%** allocated to office facilities.  **[GOOGL_3380815_11]**  It's premature to comment on 2025 CapEx.  **[GOOGL_3380815_11]** 

2. **YouTube Shorts Monetization**  
   **Q:** Can Shorts monetization match horizontal videos over time?  
   **A:** Philipp Schindler highlighted that the monetization rate of Shorts relative to in-stream viewing has more than **doubled in the last 12 months**.  **[GOOGL_3380815_13]**  He sees no structural reasons why Shorts monetization can't match horizontal videos over time.  **[GOOGL_3380815_13]** 

3. **Google Cloud Growth**  
   **Q:** What opportunities and constraints affect GCP's growth acceleration?  
   **A:** Sundar Pichai noted that the AI transformation is a point of inflection, leading to increased interest in Google Cloud's AI offerings like Vertex AI and Workspace.  **[GOOGL_3380815_17]**  He mentioned challenges like customers' switching costs and the need to make it easier for them to adopt GCP.  **[GOOGL_3380815_17]** 

4. **Search Generative Experience (SGE)**  
   **Q:** How is SGE impacting Search queries and monetization?  
   **A:** Sundar Pichai stated that SGE is expanding the types of queries and improving user experience.  **[GOOGL_3380815_11]**  He is optimistic about the transition, noting positive user engagement and confidence in managing monetization and costs.  **[GOOGL_3380815_19]** 

5. **AI Transition Opportunities**  
   **Q:** How is Google balancing AI opportunities with efficiency?  
   **A:** Sundar Pichai sees the AI transition as a **once-in-a-generation** opportunity.  **[GOOGL_3380815_12]**  He's focusing on working across the company efficiently, redirecting people to high priorities, and leveraging 20 years of experience to invest dollars efficiently.  **[GOOGL_3380815_12]** 

6. **CapEx Return on Investment**  
   **Q:** Do you expect better returns on CapEx than in the past?  
   **A:** Ruth Porat explained that increased CapEx reflects opportunities across the company, including support for the Gemini model and GCP growth.  **[GOOGL_3380815_14]**  Investing in CapEx opens more products and services, bringing revenue opportunities, and they're focused on monetization.  **[GOOGL_3380815_14]** 

7. **$100 Billion Run Rate for YouTube and Cloud**  
   **Q:** What informs your outlook on YouTube and Cloud reaching $100B?  
   **A:** Ruth Porat mentioned ongoing momentum and strong performance, highlighting confidence in the businesses' growth over time.  **[GOOGL_3380815_16]** 

8. **Smartphone-Based AI Searches**  
   **Q:** How will you monetize on-device AI searches?  
   **A:** Sundar Pichai believes many user needs will still require cloud interaction.  **[GOOGL_3380815_18]**  He views on-device capabilities as positive but doesn't see on-device versus cloud as a significant driver in monetization.  **[GOOGL_3380815_18]** 

9. **Sports Rights on YouTube**  
   **Q:** Any plans to acquire more live sports rights?  
   **A:** Philipp Schindler said they have significant partnerships in sports and are always looking to create more value but have nothing specific to announce at this moment.  **[GOOGL_3380815_17]** 

10. **Hardware Roadmap**  
    **Q:** Any areas to highlight in upcoming hardware launches?  
    **A:** Sundar Pichai didn't provide specifics but indicated excitement about future innovations.  **[GOOGL_3380815_19]** 

f8ab3de020fad4a5ee22d7777e0f91d931e165b0084c319c19e01479c8c12a1e

- **Google's AI advancements are driving growth and innovation**, with positive feedback on their Search Generative Experience (SGE), and confidence that AI will enhance both organic search and monetization, serving information needs in a deeper way.  **[GOOGL_3371150_15]** ,  **[GOOGL_3371150_14]** ,  **[GOOGL_3371150_11]**
- **Google Cloud experienced accelerated growth this quarter, driven by AI adoption**, with over **70% of GenAI unicorns using Google Cloud**, indicating that AI is a significant growth driver for Google Cloud services.  **[GOOGL_3371150_16]**
- **Significant investments in AI and technical infrastructure** demonstrate Google's commitment to long-term growth, with **CapEx expected to be notably larger in 2024**, supporting their AI-powered services and opportunities.  **[GOOGL_3371150_14]** ,  **[GOOGL_3371150_11]**

f466c04449d08b1d7182459b0a857a533bf3d0e57bd18920e1ee24e37cb6ed74

- **Google Cloud's operating margins have expanded to 17%**, reflecting significant improvement due to scaling and efficiency efforts, positioning it for continued growth and profitability.  **[GOOGL_3404433_16]**
- **YouTube Shorts watch time continues to grow**, with over **70 billion Shorts watched every day**, and monetization rates improving, narrowing the gap with instream ads, which is attracting advertisers.  **[GOOGL_3404433_12]**
- **Waymo is scaling rapidly**, expanding to new cities like LA, Austin, and Atlanta, with positive consumer adoption and strategic partnerships, such as with Uber, accelerating growth opportunities.  **[GOOGL_3404433_12]**

d7ddc7c207eececf6ffa235ffd8ab78ed7540365389d3041e1cfac3685a82ef7

- Google Cloud's AI infrastructure and generative AI solutions have already generated **billions in revenues** and are being used by **over 2 million developers**, with the majority of top 100 customers adopting these solutions, indicating strong future growth potential in AI and Cloud services.  **[GOOGL_3393969_15]**
- Strong subscriber growth in **YouTube TV**, **YouTube Music Premium**, and **Google One** is driving healthy growth in the subscriptions, platforms, and devices segment, reflecting robust demand for Google's subscription services.  **[GOOGL_3393969_15]**
- Google's aggressive investment in **AI** positions the company at the forefront of transformative technological change, expected to benefit core products like **Search**, **YouTube**, and **Cloud**, while ongoing efforts to **durably reengineer the cost base** aim to improve margins and operational efficiency.  **[GOOGL_3393969_16]** **[GOOGL_3393969_12]**

b7c321f2249b0b16c30ab953d36e63e942ffd67c0b904584fe1c769d22d9daed

- **Alphabet's aggressive investment in AI and technical infrastructure may risk over-investing, leading to increased depreciation and expenses, which can impact operating margins in the near term.**  **[GOOGL_3393969_16]** **[GOOGL_3393969_13]**
- **Progress in monetizing AI innovations, particularly in enterprise applications within Google Cloud, is taking longer than expected, potentially delaying revenue growth from these initiatives.**  **[GOOGL_3393969_15]** **[GOOGL_3393969_12]**
- **YouTube's growth rate has decelerated due to tougher comparisons and factors like foreign exchange headwinds, and there are delays in applying AI innovations to accelerate YouTube's growth, which may impact overall growth prospects.**  **[GOOGL_3393969_14]**

4c02e5e560ce1573e9f53f87033646df6f74f3a6bfdb45f9451ddb1ca11306b5

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