Alphabet reports Q4 revenue up 12% YoY to $96.47B, net income up 28% YoY to $26.54B, Services revenue up 10% to $84.1B, and Other Bets revenue down 39% to $400M

MOUNTAIN VIEW, Calif. - February 4, 2025 - Alphabet Inc. (NASDAQ: GOOG, GOOGL) today announced financial results for the quarter and fiscal year ended December 31, 2024.

Alphabet Inc 2025-02-05

Context & Ripple Effects

Alphabet’s core business remains the center of its financial profile: Services produced $84.1B of the $96.47B quarterly total. That concentration contrasts with the long-running drag from experimental operations, including an earlier period when Other Bets’ operating loss increased.

The results establish a baseline for 2025: revenue grew 12% while net income grew 28%, indicating profit rose faster than the top line. The subsequent Q1 report’s continued 10% Services growth suggests that core-business momentum persisted into the next quarter.

First-order effects

Alphabet’s Services unit adds $84.1B in quarterly revenue, making it the immediate driver of the company’s 12% total revenue growth.
Net income rises faster than revenue, while Other Bets revenue falls 39% to $400M, further widening the reported scale gap between Alphabet’s core operations and its smaller experimental portfolio.

Second-order effects

Investors and operating leaders will have a clearer incentive to judge Alphabet’s execution primarily through Services growth and earnings conversion rather than Other Bets’ revenue contribution.
The weaker Other Bets revenue comparison raises the bar for non-core initiatives to demonstrate commercial traction alongside the cash-generating core business.

Third-order effects

If the divergence persists, Alphabet’s portfolio may be valued and managed increasingly as a highly profitable core platform with a comparatively small set of ventures that must earn continued strategic support.
This is part of a broader compute-finance dynamic: large technology groups can fund long-horizon bets, but the financial narrative remains anchored in the durability and profitability of their core revenue engines.

The trend: Alphabet’s results point to an industry trend in which mature platform businesses finance experimentation, while core-service growth and profit expansion remain the decisive measures of corporate performance.

Discussion

@joecarlsonshow Joseph Carlson on x
Google just said they would spend $75 billion on CAPEX in 2025. To put that in perspective that very last bar is $50 billion. CAPEX is exploding. The market does not like this. I don't mind this at all, because I believe they will get a high ROI on this infrastructure. [image]
@thetranscript_ @thetranscript_ on x
Alphabet CFO: “The increase in our investment in CapEx over the past few years will increase pressure on the P&L, primarily in the form of higher depreciation. In 2024, we saw 28% YoY growth & depreciation as we put more technical infrastructure assets into service” $GOOG $GOOGL
@patrickmoorhead Patrick Moorhead on x
And for $GOOGL, it's a mixed quarter. There was a slight miss on revenue, a slight beat/meet on EPS, and Google Cloud below expectations. YouTube, Search, and Other all beat. Down 6% AH. We'll have to wait for the call to see what happened. Can't get enough GPUs? Big deal fall [i…
@economyapp @economyapp on x
$GOOG Alphabet Q4 FY24: • Revenue +12% Y/Y to $96.5B ($0.2B miss). • Operating margin 32% (+5pp Y/Y). • EPS $2.15 ($0.02 beat). ☁️ Google Cloud: • Revenue +30% Y/Y to $12.0B. • Operating margin 18% (+8pp Y/Y). ▶️ YouTube ads +14% to $10.5B. [image]
@thetranscript_ @thetranscript_ on x
Alphabet CEO @sundarpichai: “Our AI-powered Google Cloud portfolio is seeing stronger customer demand, and YouTube continues to be the leader in streaming watchtime and podcasts” $GOOG $GOOGL
@thetranscript_ @thetranscript_ on x
Alphabet CEO @sundarpichai: “We are confident about the opportunities ahead, and to accelerate our progress, we expect to invest ~ $75B in capital expenditures in 2025” $GOOG $GOOGL [image]
@thetranscript_ @thetranscript_ on x
Alphabet CFO: “As we mentioned on the Q3 call, as we expand our AI efforts, we expect to increase our investments in capex for technical infrastructure, primarily for servers, followed by data centers & networking. We expect to invest ~$75B in CapEx in 2025, with ~$16B to $18B of
@firstadopter Tae Kim on x
DeepSeek experts said Big Tech would now cut capex. Google just raised 2025 capex to $75 billion versus $59 billion estimate.
@beth_kindig Beth Kindig on x
Alphabet $GOOG guided for $75 billion in capex in 2025, up 43% from $52.6 billion in FY24. This was also ahead of estimates for $63 billion in capex from Morgan Stanley. $NVDA $AMD $AVGO
@officiallogank Logan Kilpatrick on x
4.4 million developers are now building with Gemini. Yet, we are just getting started : )
@sundarpichai Sundar Pichai on x
3/ Great momentum elsewhere: in the US, YouTube continues to be #1 in streaming watchtime and podcasts. Cloud + YouTube ended the year at a combined run rate of $110B...
@sundarpichai Sundar Pichai on x
1/ Just wrapped my Q4 + FY '24 earnings remarks. It was another strong quarter, driven by our AI leadership and unique full stack approach.
@sundarpichai Sundar Pichai on x
2/ AI Overviews are now in 100+ countries, and drive higher satisfaction + Search usage. Circle to Search is going great too. 2025 is going to be a big year for Search innovation as AI continues to expand the universe of queries people can ask.
@sundarpichai Sundar Pichai on x
4/ ... 4.4M devs are now building with Gemini. Vertex usage increased 20x during 2024. Waymo safely served 4M+ passenger trips, and is expanding to more cities. Read the full remarks here: https://blog.google/...
@thetranscript_ @thetranscript_ on x
Alphabet CEO on DeepSeek's cost efficiency: “We know we can drive extraordinary use cases because the cost of actually using AI is going to keep coming down, making more use cases feasible. That's the opportunity space—it's as big as it gets” $GOOG $GOOGL [image]
@convertbond Lawrence McDonald on x
Google $GOOGL capex forecast $75B vs $58B previous guidance. This is an all you can eat AI arms race, buffet. Former cash earnings cows are becoming highly capital intensive businesses. All trying to out gun the next guy. Fiber optic cable 1998-2001, shale oil 2010-2014, repeat.
@munster_gene Gene Munster on x
Good news for the AI trade and $NVDA: Google says Capex in 2025 will be $75B, up 47% y/y. The Street had been excepting 18% growth.
@iancutress @iancutress on x
For all the people making Youtube a living, Google posted $10.47 billion revenue from YouTube ads in 24Q4. The company as awhole made $96.5b revenue and $30.97b operating income. Will look deeper into these numbers after $AMD's results.
@pkafka Peter Kafka on x
Sign of the times: In earnings release, Google notes that YouTube - a ~ $40 billion video giant - is “the leader in streaming watchtime and podcasts”.
@firstadopter Tae Kim on bluesky
The whining about Google's capex spending makes no sense. As I repeatedly detailed in my book, tech giants get disrupted when they prioritize short-term financial returns over aggressive investment in big technology shifts. It led to the downfall of Intel, many others.
@levie Aaron Levie on x
Google is about to spend $75B on data centers this year. It turns out we're only at the start of the AI supercycle. [image]
@firstadopter Tae Kim on x
The whining about Google's capex spending makes no sense. As I repeatedly detailed in my book, tech giants get disrupted when they prioritize short-term financial returns over aggressive investment in big technology shifts. It led to the downfall of Intel, many others.
@realmattmoney Matt Farley on x
$GOOGL - If you're selling, you missed the big picture. The operating margins expanded 500 points from 27% to 32% in the last 12 months, and GCP & YT is far from done... One year ago, in 4Q 2023, Google Cloud produced $9.2B in revenue and a net income of $864m. Coming to a
@joecarlsonshow Joseph Carlson on x
Just to be clear, the revenue “miss” from Google was by 0.09%, meaning the missed revenue by less than a tenth of a percent. I don't buy it that the stock is dropping because of missing revenue by a fraction of a percent. I think investors are more concerned about the $75 [image]
@thetranscript_ @thetranscript_ on x
Alphabet CFO on Capex: “Our reported CapEx in Q4 24 was $14 billion, primarily reflecting investments in our technical infrastructure, with the largest component being investment in servers, followed by data centers, to support the growth of our business across Google Services,
@the_ai_investor @the_ai_investor on x
$NVDA is up AH after the market saw $75B 2025 capex from $GOOGL. [image]

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