Search fears fade as Alphabet posts $127.6 billion Q3 revenue: Cloud up 103%, search usage growth at a five-year high
First seen on X 4 hours ago@sundarpichai ♥ 5,1715 views
Alphabet reported Q3 revenue of $127.577 billion on Oct. 28, up 25% from a year earlier and a quarterly record.
CEO Sundar Pichai wrote on X that Alphabet had reached a "half-trillion annual revenue run rate." The post collected about 5,000 likes. He said AI investments are driving overall Search query growth, including commercial queries, and that year-over-year query growth is the highest in five years. That runs against predictions that generative AI such as ChatGPT would erode search.
Chosun Ilbo reports Google Cloud revenue rose 103% to $30.709 billion, after 82% growth in the prior quarter. Cloud operating income more than tripled, from $3.594 billion to $11.121 billion. Search and related revenue was $63.35 billion, up 12%. Pichai said the Gemini app has 1 billion users and Google's first-party model APIs process nearly 32 billion tokens a minute, up 40% from the prior quarter.
The spending is heavy. Capital expenditure was $51.355 billion and free cash flow was about negative $9.065 billion, the second straight quarter of cash outflow.
“Q3 is in the books! We’re now on a half-trillion annual revenue run rate, with Alphabet revenues growing at 25%.”
