By region, Asia Pacific underperformed compared with the US and EMEA.
Google has grown its quarterly advertising revenues by 10 per cent to $84.1 billion, with solid gains in YouTube (up 13.8 per cent) and search (up 12.5 per cent).
This was offset by Google’s ad network, which continues its downwards trajectory with a 4.1 per cent quarterly slump.
In 2024, advertising revenue increased by a similar amount including a 14.7 per cent lift in YouTube and 13.2 per cent rise in search advertising.
By region, overall revenues in the US and EMEA were in-line with overall company growth trends, but APAC under-performed with 8.8 per cent growth in constant currency terms.
Google Cloud revenues increased 30 per cent to $12 billion led by growth in Google Cloud Total operating income increased by 31 per cent and operating margin expanded by 5 percentage points to 32 per cent.
“Q4 was a strong quarter driven by our leadership in AI and momentum across the business. We are building, testing, and launching products and models faster than ever, and making significant progress in compute and driving efficiencies,” Alphabet CEO Sundar Pichai said.
“In Search, advances like AI Overviews and Circle to Search are increasing user engagement. Our AI-powered Google Cloud portfolio is seeing stronger customer demand, and YouTube continues to be the leader in streaming watchtime and podcasts.
“Together, Cloud and YouTube exited 2024 at an annual revenue run rate of $110 billion. Our results show the power of our differentiated full-stack approach to AI innovation and the continued strength of our core businesses. We are confident about the opportunities ahead, and to accelerate our progress, we expect to invest approximately $75 billion in capital expenditures in 2025.”
YouTube’s push into television viewing has accelerated. About 15 per cent of Shorts viewing is now on the TV box, while podcast viewing accounted for 10 per cent of total television viewing.
