[Financial Summary] Google increases sales and profit for the January-March fiscal year, and the cloud business is doing well
The holding company of Google in the US $Alphabet-A(GOOGL.US$announced financial results for the 24Q1 (fiscal year ending January-March) on the 26th (Japan time). Of the first quarterEPS exceeded expectationsOther than that,Sales also exceeded expectations。Because the cloud business, which is the main business, increased drastically by 28% compared to the previous year, 1 hour outside of hoursover 16%It has risen. The company also revealed that share buybacks will also add $70 billion. While focusing on artificial intelligence (AI) related services, investment in data centers will increase this year, indicating that it is in an advantageous position for the next wave of AI innovation.
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Sales compared to the same period last yearA 15% increase of 80.54 billion dollars, which exceeded market expectations of 79.04 billion dollars. Adjusted earnings per share1.89 dollars, a significant increase of 61.5% compared to 1.17 dollars in the same period last year, exceeding market expectations of 1.53 dollars. Net profit compared to previous yearA 57% increase of 23.66 billion dollars, exceeding market expectations of 18.95 billion dollars。
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In the cloud computing market, Google Cloud is currently $Amazon(AMZN.US$Ya $Microsoft(MSFT.US$It remains in 3rd place after, but Google Cloud's financial results for this quarterAchieved a 28% increase in performance. The company's superior capabilities in generative AI helped to close that gap.
Chief Investment Officer (CIO) Ruth Polat told reporters at a telephone conference that “an increase in contributions from our AI solutions has been seen,” and added that Google Cloud's performance “clearly reflects the strength of the industry as a whole.”
Cloud business sales compared to the previous yearAn increase of 28.4% to 9.57 billion dollars, exceeding analysts' expectations of 9.37 billion dollars. The previous four quarters were 9.19 billion dollars, up 25.7%. Growth accelerated from the previous quarter. Operating profit for the same division compared to the previous yearIt increased more than 4 times from 190 million dollars to 900 million dollars, far exceeding analysts' expectations of 670 million dollars。
The advertising business is Google's main business that attracts the attention of investors. According to the financial results report, the first quarter'sSales in the advertising business were 61.66 billion dollars, up 13% from the same period last year, exceeding market expectations of 60.18 billion dollars. It showed that it has been accelerating since 2023. In the meantime,YouTube sales increased approximately 21% from the previous year to 8.09 billion dollars, exceeding the forecast of 7.72 billion dollars. Google search and other sales reached 46.156 billion dollars, up 14% or more from the previous year.
Alphabet announced its first dividend on the 25th,$0.20 per shareI decided to pay.Add $70 billion in share buybacksIt was also clarified.
Currently, Alphabet's cash, equivalents and securities are $108 billion, slightly below the previous year's $110.9 billion. The number of employees worldwide is approximately 9,800 to 181,000, down 5.1% from the previous year.
Alphabet's capital investment has increased due to large investments in artificial intelligence. The company's capital investment compared to the previous year$12 billion, up 91%, higher than the forecast of $10.3 billion。
Hannah Howard, portfolio manager at Gabelli Fans, pointed out that “it was a higher number than expected.”
Alphabet is because the company continues to invest in infrastructure such as servers and data centers to pave the way for AI products,2024 spending is expected to continue to riseDoing it.
Chief Financial Officer Ruth Polat (CFO) indicated in an analyst conference call that capital investment will reach this level or higher by the end of the year due to AI product development.
According to the company, rapid progress has been made against the Gemini AI model, and investment in infrastructure has also increased. Google has begun deploying AI overviews on major search pages.
Google CEO Sundar Pichai stated at the financial results briefing that “the company is in an advantageous position for the next wave of AI innovation due to Alphabet's leadership in AI development and infrastructure and global products.”
This article uses automatic translation for some of its parts
Source: Bloomberg, Reuters, MINKABU, Alphabet IR Information
-MOOMOO News Kouchi
Source: Bloomberg, Reuters, MINKABU, Alphabet IR Information
-MOOMOO News Kouchi
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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181265649 : Hey hey, stop kidding
(@_@;)
ハンドルネーム 1093 : Even though NTT has set up a joint front with AT&T in America, if they don't confront Google... I feel like NTT and AT&T will soon be ruined by both NTT and AT&T...
(; ^ω^)