Google / Alphabet reported (PDF) its Q2 2024 earnings last night, where its ad revenue hit $64.62 billion, up 11% from last year's quarter of $58.14 billion. Clearly, Google's advertising business continues to grow despite any economic downturn we may have seen.
Google's overall revenue was up 14% year-over-year, with $85 billion in revenue and $1 billion in operating profit for the first time. CNBC reported, "The company reported ad revenue of $64.62 billion — up from $58.14 billion last year, showing that Google’s advertising business continues to grow, though at a slower pace than in the first quarter, after rising inflation and interest rates tightened marketing budgets in 2022 and 2023."
That makes Google ad revenue increases this quarter, the previous quarter, the quarter before that and the quarter before that.
This is the second best ad revenue quarter Google ever reported, the best was the Q4 2023 earnings where Google had ad revenue of $65.52 billion, which is 1.37% less this past quarter of $64.62 billion. Normally, Q4 is the best ad revenue-performing quarter for Google.
Here is a chart plotting Google's overall revenue, then ad revenue and then profit over the past several quarters:
Here is the snippet from the earnings report:
Sundar Pichai, CEO, said: "Our strong performance this quarter highlights ongoing strength in Search and momentum in Cloud. We are innovating at every layer of the AI stack. Our longstanding infrastructure leadership and in-house research teams position us well as technology evolves and as we pursue the many opportunities ahead." Ruth Porat, President and Chief Investment Officer; CFO said: "We delivered revenues of $85 billion, up 14% year- on-year driven by Search as well as Cloud, which for the first time exceeded $10 billion in quarterly revenues and $1 billion in operating profit. As we invest to support our highest growth opportunities, we remain committed to creating investment capacity with our ongoing work to durably re-engineer our cost base."
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