Copyright cnbc
The company reported cloud revenue of $15.15 billion, a 35% increase from the same period last year. “We have signed more deals over one billion dollars through Q3 this year than we did in the previous two years combined,” said Pichai, referring to the first nine months of the year. In August, Google won a $10 billion cloud contract from Meta spanning six years. Alphabet, which reported 32% cloud revenue growth last quarter, is keeping pace with its megacap competitors. Microsoft posted 40% revenue growth in its Azure cloud business as it reported earnings on Wednesday. Over 70% of existing Google Cloud customers use its AI products, Pichai said. That’s a result of the company’s strategy to upsell existing customers. Google’s flagship AI app Gemini now has more than 650 million monthly active users, the company said in its Wednesday report. That’s up from the 450 million active users Pichai said it had last quarter. OpenAI CEO Sam Altman said earlier this month that ChatGPT now has 800 million users per week. Google’s search business generated $56.56 billion in revenue — up 15% from the prior year. Alphabet’s net income increased to $34.97 billion, or $2.87 per share, compared to $26.3 billion, or $2.12 per share, in the year-ago quarter. In September, Google was slapped with a $3.45 billion antitrust fine from European Union regulators for anti-competitive practices in its lucrative advertising technology business. That fine impacted the reported net income. YouTube advertising revenue came in at $10.26 billion, higher than Wall Street expected. Alphabet reported overall advertising revenue of $74.18 billion — up from $65.85 billion last year. Other Bets, which includes the company’s life sciences unit Verily and self-driving car unit Waymo, reported revenue of $344 million during the quarter. That’s lower than the $388 million from the same quarter last year. Alphabet reported a loss of $1.42 billion on other bets, compared to a loss of $1.12 billion the year before. The Google parent’s stock is up 45% so far this year.
