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

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

d259fd15d52e4a8d2ae85f513140139bf5c16ccef6acbd67a437c1b57c3306ad

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

United States

EMEA

APAC

Other Americas

United Kingdom

Rest of the World

Hedging gains (losses)

Total Revenue

44af6e1979122f831cbbcab583b251b45af170adc0518b0a5cdcc44f6f532d54

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

Net Income (USD, millions)

Depreciation of property and equipment (USD, millions)

Stock-based compensation expense (USD, millions)

Loss (gain) on debt and equity securities, net (USD, millions)

Other Adjustments (USD, millions)

Net cash provided by operating activities (USD, millions)

Purchases of property and equipment (USD, millions)

Purchases of marketable securities (USD, millions)

Maturities and sales of marketable securities (USD, millions)

Purchases of non-marketable securities (USD, millions)

Maturities and sales of non-marketable securities (USD, millions)

Acquisitions, net of cash acquired, and purchases of intangible assets (USD, millions)

Other investing activities (USD, millions)

Net cash used in investing activities (USD, millions)

Net payments related to stock-based award activities (USD, millions)

Repurchases of stock (USD, millions)

Dividend payments (USD, millions)

Proceeds from issuance of debt, net of costs (USD, millions)

Repayments of debt (USD, millions)

Proceeds from sale of interest in consolidated entities, net (USD, millions)

Net cash used in financing activities (USD, millions)

Effect of exchange rate changes on cash and cash equivalents (USD, millions)

Net increase (decrease) in cash and cash equivalents (USD, millions)

Deferred income taxes (USD, millions)

Cash and cash equivalents at beginning of period (USD, millions)

Cash and cash equivalents at end of period (USD, millions)

e6073ada318f19de2c3ed412a1c59068a1df40f81d01856f2d7bd4dee702304f

Revenues (USD, millions)

Cost of revenues (USD, millions)

Research and development (USD, millions)

Sales and marketing (USD, millions)

General and administrative (USD, millions)

Total costs and expenses (USD, millions)

Income from operations (USD, millions)

Other income (expense), net (USD, millions)

Income before income taxes (USD, millions)

Provision for income taxes (USD, millions)

Net income (USD, millions)

Basic net income per share (USD)

Diluted net income per share (USD)

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Cash and cash equivalents (USD, millions)

Marketable securities (USD, millions)

Total cash, cash equivalents, and marketable securities (USD, millions)

Accounts receivable, net (USD, millions)

Other current assets (USD, millions)

Total current assets (USD, millions)

Non-marketable securities (USD, millions)

Property and equipment, net (USD, millions)

Operating lease assets (USD, millions)

Goodwill (USD, millions)

Other non-current assets (USD, millions)

Total assets (USD, millions)

Accounts payable (USD, millions)

Accrued compensation and benefits (USD, millions)

Accrued expenses and other current liabilities (USD, millions)

Accrued revenue share (USD, millions)

Deferred revenue (USD, millions)

Total current liabilities (USD, millions)

Long-term debt (USD, millions)

Income taxes payable, non-current (USD, millions)

Operating lease liabilities (USD, millions)

Other long-term liabilities (USD, millions)

Total liabilities (USD, millions)

Preferred stock (USD, millions)

Class A, Class B, and Class C stock and additional paid-in capital (USD, millions)

Accumulated other comprehensive income (loss) (USD, millions)

Retained earnings (USD, millions)

Total stockholders’ equity (USD, millions)

Total liabilities and stockholders’ equity (USD, millions)

3e0bf017205f456218bec318ceb7b25ff023d284396858b6a0d47c186dedf866

The high operating cash flow in Q4 2024 was driven by several factors. Primarily, **net cash provided by operating activities** increased to **$39,113 million** in Q4 2024, up from **$18,915 million** in Q4 2023. This rise was due to **higher net income** (increasing from **$20,687 million** in Q4 2023 to **$26,536 million** in Q4 2024), **strong revenue growth**, and **improved operating efficiency**—with operating income growing by **31%** and the operating margin expanding. Additionally, non-cash adjustments, including **stock-based compensation expense** of **$5,810 million** and **depreciation** of **$4,205 million**, along with favorable changes in working capital, further contributed to the significant increase in operating cash flow.  **[0001652044-25-000010_googexhibit991q42024.htm:4]** **[0001652044-25-000010_googexhibit991q42024.htm:0]** 

Why was Operating Cash Flow so high in Q4 2024?

The sharp increase in capital expenditures in Q1 2024 was driven by **heightened investment in technical infrastructure**, including increased spending on **servers, network equipment, and data centers**. This strategic allocation supports the company’s overall business growth and long-term initiatives, particularly in the development of **AI products and services**.  **[0001652044-24-000047_googexhibit991q12024.htm:5]** **[0001652044-24-000053_goog-20240331.htm:40]** 

What drove the sharp increase in capital expenditures in Q1 2024?

Alphabet's **cash outflows from investing activities more than doubled in Q4 2024** due to several key factors. The company significantly increased its **purchases of property and equipment** to upgrade its technical infrastructure – including investments in servers, data centers, and networking equipment. Additionally, there was a substantial rise in **purchases of marketable securities** and **payments for acquisitions and intangible asset purchases**. These combined actions led to a much higher net cash outflow in Q4 2024 compared to previous periods.  **[0001652044-25-000014_goog-20241231.htm:75]** **[0001652044-25-000014_goog-20241231.htm:76]** **[0001652044-25-000014_goog-20241231.htm:91]** 

Why did cash outflows from investing activities more than double in Q4 2024?

b090ab37a5d894e311f70541350105ea76a352d2025df3ff91a3bc2985194394

The higher Q4 2024 revenues were driven by multiple factors, including robust **Google Services Growth**—with increases in Google Search & Other, YouTube Ads, and Google Subscriptions, Platforms, and Devices—and significant **Google Cloud Expansion** marked by a 30% rise in revenues. In addition, broad-based **geographic revenue gains** (notably in the United States, EMEA, APAC, and Other Americas), strategic **AI and product innovations**, strong **retail and holiday season contributions** (with over $1 billion generated in key shopping events), and a beneficial **shift in the revenue mix** toward higher-margin products all played key roles.  **[0001652044-25-000010_googexhibit991q42024.htm:0]** **[0001652044-25-000010_googexhibit991q42024.htm:7]** **[GOOGL_3414254_7]** **[0001652044-25-000014_goog-20241231.htm:72]** **[GOOGL_3414254_4]** **[GOOGL_3414254_8]** 

What drove the higher revenues in Q4 2024?

Alphabet's **Q1 2024 operating income** was boosted by several factors. Firstly, **revenue growth** played a crucial role, with total revenues up by **15% year-over-year**, supported by strong gains in **Google Search**, **YouTube ads**, and notably **Google Cloud**, whose revenues grew by **28%**.  **[0001652044-24-000047_googexhibit991q12024.htm:0]** **[0001652044-24-000053_goog-20240331.htm:27]** **[0001652044-24-000053_goog-20240331.htm:33]**  Additionally, **operating margin expansion** contributed significantly, improving from **25%** in Q1 2023 to **32%** in Q1 2024 due to higher revenues and effective cost management.  **[0001652044-24-000047_googexhibit991q12024.htm:0]** **[0001652044-24-000053_goog-20240331.htm:27]** **[GOOGL_3380815_7]**  The company also implemented **cost optimization** measures, reducing overall operating expenses by **2%** and cutting specific items such as **general and administrative expenses** and certain **compensation expenses**.  **[0001652044-24-000053_goog-20240331.htm:38]** **[GOOGL_3380815_7]**  Furthermore, improved **segment performance**—with marked increases in both **Google Services** and **Google Cloud** operating income—and the favorable impact of lower restructuring charges compared to Q1 2023 collectively underpinned the solid growth in operating income for the quarter.  **[0001652044-24-000053_goog-20240331.htm:27]** **[0001652044-24-000053_goog-20240331.htm:38]** **[GOOGL_3380815_7]** **[0001652044-24-000053_goog-20240331.htm:33]** 

What factors boosted Q1 2024 operating income?

The surge in Q1 2024 net income was driven by **strong revenue growth**—with revenues increasing by **15%** from **$69.8 billion** in Q1 2023 to **$80.5 billion**—and a significant enhancement in **operating income**, which jumped by **46%** (from **$17,415 million** to **$25,472 million**) as a result of reengineered cost bases that boosted the operating margin from **25%** to **32%**. Additionally, a marked increase in **other income** (from **$790 million** to **$2,843 million**) and effective **cost management** measures, such as reduced expenses related to legal and restructuring matters, contributed to the substantial net income growth in Q1 2024.  **[0001652044-24-000047_googexhibit991q12024.htm:0]** **[GOOGL_3380815_7]** 

What led to the surge in Q1 2024 net income?

The improvement in full-year EPS in FY 2024 was primarily driven by a **substantial increase in net income**—which grew by **$26.3 billion (36%)** from **$73.8 billion in FY 2023** to **$100.1 billion in FY 2024**—coupled with **aggressive share repurchases** (379 million shares for **$62.0 billion**) that significantly reduced the weighted-average number of shares outstanding. Additionally, the launch of **dividend payments** totaling **$7.4 billion** underscored the company’s strong financial performance and bolstered investor confidence, further contributing to the improvement in EPS.  **[0001652044-25-000014_goog-20241231.htm:88]** **[0001652044-25-000014_goog-20241231.htm:69]** 

What drove the improvement in full-year EPS in FY 2024?

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The significant drop in **Cash and cash equivalents** during Q3 2024 was primarily due to large outflows from both investing and financing activities. Although **Alphabet generated $30,698 million** from operating activities, this was more than offset by **$18,011 million** used in investing activities (including substantial purchases of property, equipment, and marketable securities) and **$20,094 million** used in financing activities, which included **$15,291 million** in stock repurchases and a **$3 billion cash payment** related to the 2017 EC shopping fine.  **[0001652044-24-000115_googexhibit991q32024.htm:4]** 

Why did Cash and cash equivalents drop significantly in Q3 2024?

The reduction was primarily driven by significant debt repayments during the year. **Alphabet repaid $12,701 million** in debt in 2024, which outweighed the **$13,589 million** in new debt issuances when considering amortization of discounts and issuance costs. The net effect of these activities resulted in a **$987 million** decrease in long-term debt by the end of Q4 2024.  **[0001652044-25-000010_googexhibit991q42024.htm:4]** **[0001652044-25-000014_goog-20241231.htm:112]** **[0001652044-25-000010_googexhibit991q42024.htm:4]** 

What factors contributed to the marked reduction in Long-term debt in Q4 2024?

The substantial increase in **Total assets** in Q4 2024 was primarily driven by several factors. **Property and Equipment, Net** saw a significant rise (**+36,691 million USD**), reflecting heavy investments in technical infrastructure and capital expenditures. Additionally, there was notable growth in **Non-Marketable Securities** (**+6,974 million USD**) as Alphabet increased its investments in privately held companies, along with an increase in **Accounts Receivable, Net** (**+4,376 million USD**) linked to higher revenues. Furthermore, increases in other non-current and current assets also contributed to the overall jump in Total assets, although this was partly offset by a decline in cash, cash equivalents, and marketable securities.  **[0001652044-25-000010_googexhibit991q42024.htm:3]** **[0001652044-25-000014_goog-20241231.htm:87]** **[0001652044-25-000014_goog-20241231.htm:106]** 

What drove the substantial increase in Total assets in Q4 2024?

8dd1db8d6ffde7bc66fb78f919212d1177270eca923bec5cddb64e5d95066b04

7f268635611530452433b282fd1f1fa2bd4186073d7f14da291ee6eb98bf680d

8c86fbde37ea9310c201952dc740f9883dfbf4a7c40d85be3b34be914e759a64

Alphabet Inc (GOOGL)

Financials