Alphabet Inc.’s YouTube has reached a milestone as total advertising and subscription revenues have surpassed $50 billion over the past four quarters, according to the company’s Q3 earnings report released October 29, 2024.

The video platform’s advertising revenue alone reached $8.92 billion in Q3 2024, up from $7.95 billion in the same period last year, contributing to Google Services’ overall revenue growth of 13% to $76.5 billion.

Google’s subscription-based offerings, including YouTube TV, YouTube Music and Premium, and NFL Sunday Ticket, helped drive the company’s Google subscriptions, platforms, and devices revenue to $10.66 billion, up from $8.34 billion in Q3 2023.

“The momentum across the company is extraordinary,” said Sundar Pichai, CEO of Alphabet, in a press release. “Our commitment to innovation, as well as our long-term focus and investment in AI, are paying off with consumers and partners benefiting from our AI tools.”

Overall Company Performance

Alphabet’s consolidated revenues increased 15% year over year to $88.3 billion in Q3 2024, with a 16% growth in constant currency. The company’s operating income rose 34% to $28.5 billion, while operating margins expand by 4.5 percentage points to 32%.

Key financial highlights for Q3 2024 include:

• Net income increases 34% to $26.3 billion
• Earnings per share rises 37% to $2.12
• Total costs and expenses reach $59.7 billion, up from $55.3 billion in Q3 2023
• Research and development expenses grow to $12.4 billion from $11.3 billion

The company maintains its focus on AI development. The recently announced reorganization of the Gemini app team within Google Services to join Google DeepMind reflects this strategic priority.

Google Services, which includes YouTube alongside other products such as ads, Android, Chrome, devices, Google Maps, Google Play, and Search, generated revenues primarily from advertising and subscription fees. The segment reported operating income of $30.9 billion for Q3 2024, up from $23.9 billion in the same quarter last year.

Alphabet reports a slight decrease in employee headcount to 181,269, down from 182,381 in the same period last year.

The earnings report noted that during Q3 2024, Alphabet incurred office space charges totaling $607 million as part of ongoing efficiency efforts. The company announced a cash dividend of $0.20 per share, payable on December 16, 2024, to stockholders of record as of December 9, 2024.

All financial figures and statements are based on unaudited results for the September 30, 2024, quarter, as reported in Alphabet’s earnings release.