Google reports third-quarter 2024 financial results, with revenue up 15% year-on-year to $88.268 billion and Google Cloud up 35% year-on-year to $11.353 billion, revealing that more than a quarter of the code generated in-house at Google was generated by AI
On October 29, 2024, Aplphabet, the parent company of Google, reported its third quarter 2024 financial results. In the report, Google CEO Sundar Pichai revealed that 'more than a quarter of Google's new code is generated by AI.'
Alphabet Q3 earnings call: CEO Sundar Pichai's remarks
GOOG Exhibit 99.1 Q3 2024 - 2024q3-alphabet-earnings-release.pdf
More than a quarter of new code at Google is generated by AI - The Verge
https://www.theverge.com/2024/10/29/24282757/google-new-code-generated-ai-q3-2024
As of the end of the third quarter of 2024, sales were $88,268 million, up 15% from the previous year. Operating income was $28,521 million, up 33% from the previous year. Net income was $26,301 million, up 33% from $19,689 million in the same period last year.
Below is a table summarizing the revenue for each division.
Google search and others increased 12.1% year-on-year to $4.9385 billion (approximately 7.57 trillion yen), YouTube advertising revenue increased 12.1% year-on-year to $8.921 billion (approximately 1.36 trillion yen), and Google Network decreased 1.6% year-on-year to $7.548 billion (approximately 1.15 trillion yen). Pichai said, 'YouTube's combined advertising and subscription revenue in the last quarter exceeded $50 billion (approximately 7.6 trillion yen) for the first time. YouTube's subscription revenue growth is due to the collaboration between YouTube TV, NFL Sunday Ticket, and YouTube Music Premium.'
In addition, Google's subscription, platform and device-related revenues increased 27.7% year-on-year to $10.656 billion (approximately 1.45 trillion yen).
In addition, Google Cloud's revenue was $11.353 billion (approximately 1.74 trillion yen), a rapid growth of 35% from the previous year. Pichai reported, 'Our strong technology leadership and AI portfolio are helping us attract new customers, acquire larger accounts, and introduce products to existing customers. Our enterprise AI platform, Vertex, is used to build and customize the best foundational models offered by Google and the industry, and the number of calls to the Gemini API has increased approximately 14 times over the past six months.'
Alphabet's 'Other Bets' increased 30% year-on-year to $388 million (approximately 59 billion yen), and includes AI-related businesses such as Waymo, which develops self-driving cars. Pichai said, 'Waymo is now the clear technology leader in the self-driving car industry and has created expanding commercial opportunities. Today, Waymo provides more than 1 million fully self-driving miles (approximately 1.6 million km) and more than 150,000 paid rides every week.'
In addition, traffic acquisition costs (TAC), which are paid to third-party search engines to acquire traffic and users, are also on the rise, with TAC in the third quarter of 2024 increasing 9% year-on-year to $13.719 billion (approximately 2.1 trillion yen).
In the release, Pichai revealed that Google is strengthening its approach to AI innovation, and reported that the development team of the AI assistant app 'Gemini' has been transferred to Google DeepMind, a subsidiary of Google, with the aim of accelerating the deployment of new models and streamlining post-training work. In addition, it has been reported that the coding process using AI is being improved. According to Pichai, more than a quarter of the new code generated by Google is generated by AI, and is used internally after being reviewed by human engineers. Pichai said, 'By having AI generate code, engineers can do other tasks and work more efficiently. We will continue to focus on creating great products.'
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