Our investments in AI are helping Search; subscriptions, which reached $15 billion in annual revenue, grew strongly, powered by YouTube Premium and Music, YouTube TV and Google One.
— Sundar Pichai
03Detailed Report
GOOGL
Alphabet Inc
Period
Q4 2023
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedMay 14, 2026
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Executive Summary
Alphabet Inc reported robust financial results in Q4 2023, with total consolidated revenues reaching $86.3 billion, up 13% year-over-year (YoY). Notable drivers included a 12% increase in Google Services revenue, fueled by a 13% rise in Search and other advertising segments. AI advancements have been significant, particularly with the introduction of the Gemini model, which is enhancing search capabilities. Additionally, subscription services exceeded expectations, with revenue growth to $15 billion annually, highlighting the success of YouTube Premium and Google One. The management remains optimistic about sustained growth into 2024, particularly with strategic investments in AI and Cloud services.
Key Performance Indicators
Revenue
Increasing
86.31B
QoQ: 12.54% | YoY: 13.49%
Gross Profit
Increasing
48.74B
56.50% margin
QoQ: 12.13% | YoY: 19.72%
Operating Income
Increasing
23.70B
QoQ: 11.03% | YoY: 30.49%
Net Income
Increasing
20.69B
QoQ: 5.07% | YoY: 51.84%
EPS
Increasing
1.66
QoQ: 5.73% | YoY: 56.60%
Revenue Trend
Margin Analysis
Financial Highlights
Financial Metrics Overview
- Revenue: $86.3 billion (up 13% YoY)
- Net Income: $20.7 billion (up 51.84% YoY)
- EPS: $1.64 (up 56.60% YoY)
- Operating Income: $23.7 billion (up 30% YoY)
- Free Cash Flow: $7.9 billion
- Gross Profit Margin: 56.5%
- Operating Margin: 27%
- Current Ratio: 2.10
The revenues increased significantly due to strong advertising performance, particularly in retail, which reflects Alphabet's solid market position amidst heightened competition. YoY comparisons reveal an increase in both gross profit and operating income, indicating effective cost management despite increased R&D spend. Management outlined that the higher income was also supported by tax benefits from deferrals made in previous quarters.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
86.31B
13.49%
12.54%
Gross Profit
48.74B
19.72%
12.13%
Operating Income
23.70B
30.49%
11.03%
Net Income
20.69B
51.84%
5.07%
EPS
1.66
56.60%
5.73%
Key Financial Ratios
Gross Profit Margin
Good
56.50%
Gross profit margin is healthy and competitive within industry standards
Operating Profit Margin
Excellent
27.50%
Operating margin is exceptional, indicating strong pricing power and operational efficiency
Net Profit Margin
Excellent
24.00%
Net profit margin is exceptional, indicating strong pricing power and operational efficiency
Return on Assets
Fair
5.14%
Return on assets is acceptable but below top-tier companies
Return on Equity
Fair
7.30%
Return on equity is acceptable but below top-tier companies
Current Ratio
Healthy
2.10
Current ratio shows adequate liquidity to meet short-term obligations
Debt to Equity
Conservative
0.10
Debt-to-equity shows conservative leverage and low financial risk
P/E Ratio
Fair Value
21.08x
P/E ratio in line with market averages
Price to Book
High Premium
6.16x
Very high premium suggests asset-light business model or lofty expectations
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