AI, Cloud Fuel Positive Google, Microsoft Quarterly Earnings

Google says it's positioned for the next wave of AI innovation.

Edward Gately, Senior News Editor

April 26, 2024

2 Min Read
Quarterly earnings for Google and Microsoft

Both Google Cloud owner Alphabet and Microsoft reported positive quarterly results fueled in part by AI and cloud.

For its first quarter of fiscal 2024, Alphabet’s revenue rose 15% from the same time last year to more than $80.5 billion, which surpassed analysts’ expectations. Profit exceeded $23.6 billion, up from $15 billion for the year-ago quarter.

Google services revenue totaled $70 billion, up 14% year over year. Search and other revenues grew 14% year over year, led by solid growth in the retail vertical, with particular strength from APAC-based retailers, which began in the second quarter of 2023. YouTube ad revenues were up 21% year over year, driven by growth in both direct response and brand. Network revenues declined 1% year over year. In subscriptions, platforms and devices, year-over-year revenues increased 18%, driven again by strong growth in YouTube subscriptions.

Strong Performance From Google Cloud

“Our results in the first quarter reflect strong performance from search, YouTube and cloud,” said Sundar Pichai, Google’s CEO. “We are well underway with our Gemini era and there’s great momentum across the company. Our leadership in AI research and infrastructure, and our global product footprint, position us well for the next wave of AI innovation.”

Google's Sundar Pichai

In the Google Cloud segment, revenue was $9.6 billion for the quarter, up 28%, reflecting growth in Google Cloud Platform (GCP) with an increasing contribution from AI and Google Workspace , primarily driven by increases in average revenue per seat.

New Era of AI Transformation for Microsoft

For the third quarter of its fiscal 2024, Microsoft reported $61.9 billion in revenue, a 17% year-over-year increase. Profit was $22 billion, up 20%.

Microsoft Copilot and Copilot stack are orchestrating a new era of AI transformation, driving better business outcomes across every role and industry," said Satya Nadella, Microsoft’s chairman and CEO.

Microsoft's Satya Nadella

Revenue in productivity and business processes totaled $19.6 billion, a 12% increase from the year-ago quarter. Intelligent cloud revenue was $26.7 billion, a 21% increase.

“This quarter. Microsoft Cloud revenue was $35.1 billion, up 23% year-over-year, driven by strong execution by our sales teams and partners,” said Amy Hood, Microsoft’s executive vice president and chief financial officer.

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About the Author(s)

Edward Gately

Senior News Editor, Channel Futures

As news editor, Edward Gately covers cybersecurity, new channel programs and program changes, M&A and other IT channel trends. Prior to Informa, he spent 26 years as a newspaper journalist in Texas, Louisiana and Arizona.

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