Executive Summary
Alphabet delivered a solid Q3 2024 that combined double‑digit top‑line growth with expanding profitability and robust cash generation. Revenue reached $88.268 billion, up 15.09% year over year (YoY) and 4.16% quarter over quarter (QoQ), underscored by the Google Services ecosystem and continued monetization of the YouTube platform. Gross profit rose to $51.794 billion with a gross margin of approximately 58.68%, while operating income climbed to $28.521 billion for an operating margin around 32.31%, contributing to a net income of $26.301 billion and earnings per share (EPS) of $2.14 (diluted $2.12).
Free cash flow generation remained a key strength, with operating cash flow of $30.698 billion and free cash flow of $17.637 billion, supported by capital expenditures of $13.061 billion. Alphabet ended the period with a very strong liquidity position, substantial investment assets, and a meaningful buyback program (common stock repurchased of $15.291 billion) along with quarterly dividends. The balance sheet shows a sizable asset base, substantial cash and marketable securities, and moderate leverage, underpinning a high degree of financial flexibility to invest in Google Cloud, AI initiatives, and other growth opportunities while returning value to shareholders.
Looking ahead, the company benefits from secular growth in digital advertising, a cloud business benefiting from AI-related demand, and ongoing scale advantages across its ecosystem. Key uncertainties include macro advertising volatility, intensifying platform competition, evolving regulatory scrutiny, and the pace of AI adoption. Management commentary in the QQ3 2024 cycle emphasizes disciplined investment in AI, cloud, and product innovations, balanced against cost controls and efficient capital deployment. Investors should monitor ad demand resilience, cloud growth trajectories, and the pace of AI-enabled monetization as primary catalysts and potential risk signals.
Key Performance Indicators
Key Insights
Revenue: $88.268B, YoY +15.09%, QoQ +4.16%; Gross Profit: $51.794B, YoY +19.17%, QoQ +5.20%; Operating Income: $28.521B, YoY +33.63%, QoQ +4.00%; Net Income: $26.301B, YoY +33.58%, QoQ +11.36%; EPS: $2.14, YoY +36.31%, QoQ +12.04%; Gross Margin: 58.68%; Operating Margin: 32.31%; Net Margin: 29.80%; EBITDA: $35.745B; EBITDA Margin: ~40.50%; Income Before Tax: $31.706B; Tax Expense: $5.405B; ROE: 8.37%; ROA: 6.11%; Asset Turnover: 0.205; Free Cash Flow per Share: $1.435; Operating Cash Flow per Sh...
Financial Highlights
Revenue: $88.268B, YoY +15.09%, QoQ +4.16%; Gross Profit: $51.794B, YoY +19.17%, QoQ +5.20%; Operating Income: $28.521B, YoY +33.63%, QoQ +4.00%; Net Income: $26.301B, YoY +33.58%, QoQ +11.36%; EPS: $2.14, YoY +36.31%, QoQ +12.04%; Gross Margin: 58.68%; Operating Margin: 32.31%; Net Margin: 29.80%; EBITDA: $35.745B; EBITDA Margin: ~40.50%; Income Before Tax: $31.706B; Tax Expense: $5.405B; ROE: 8.37%; ROA: 6.11%; Asset Turnover: 0.205; Free Cash Flow per Share: $1.435; Operating Cash Flow per Share: $2.50; Cash per Share (end period): $7.59; Free Cash Flow Yield (FCF/Market Cap): contingent on market cap; Dividend Payout Ratio: 9.33%; Debt to Capitalization: 7.89%; Current Ratio: 1.95; Quick Ratio: 1.95; Cash and Short-Term Investments: $93.23B (cash $19.96B; short-term investments $73.27B); Total Debt: $26.92B; Net Debt: $6.96B (offset by cash and investments); Total Assets: $430.266B; Total Equity: $314.119B; Capital Expenditures: $13.061B; Cash Used in Financing Activities: $20.094B; Cash Provided by Operating Activities: $30.698B; Net Change in Cash: -$7.266B; Final Cash Position: $19.959B.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
88.27B |
15.09% |
4.16% |
| Gross Profit |
51.79B |
19.17% |
5.20% |
| Operating Income |
28.52B |
33.63% |
4.00% |
| Net Income |
26.30B |
33.58% |
11.36% |
| EPS |
2.14 |
36.31% |
12.04% |
Key Financial Ratios
operatingProfitMargin
32.3%
operatingCashFlowPerShare
$2.5
freeCashFlowPerShare
$1.44
dividendPayoutRatio
9.33%
Management Commentary
Transcript data for QQ3 2024 not provided in the input. No management call quotes or thematic highlights are available to extract.
Forward Guidance
No explicit quantitative forward guidance was included in the provided data. Qualitative indicators suggest ongoing investment in Google Cloud and AI initiatives, continued monetization of the YouTube ecosystem, and cost discipline to protect operating margins amid potential ad-market volatility. Investors should monitor: (1) Google Services revenue trajectory and ads demand in key markets, (2) Google Cloud growth and operating profitability driven by AI offerings, (3) additional stock repurchases and capital returns, (4) regulatory developments impacting platform business models, and (5) the pace of AI-driven monetization increases across products. Based on current momentum and a conservative view on ad spend resilience, the company appears well positioned to sustain high-margin profitability and robust FCF, though execution in competitive AI/Cloud ecosystems remains pivotal.