Alphabet Inc. (Google) reported strong financial performance for the fiscal year ended December 31, 2024, with revenues reaching $350.0 billion, a 14% year-over-year increase. This growth was primarily driven by a $32.4 billion (12%) increase in Google Services revenues and a $10.1 billion (31%) increase in Google Cloud revenues. Total constant currency revenues grew by 15%, reflecting robust operational performance despite foreign exchange headwinds.

Net income for 2024 surged to $100.1 billion, representing a 36% increase from $73.8 billion in 2023. This was accompanied by a significant rise in diluted earnings per share (EPS), which increased from $5.80 in 2023 to $8.04 in 2024, a 39% improvement. The strong bottom-line performance was supported by higher operating income and gains in other income categories.

Operating income increased by 33% year-over-year to $112.4 billion, with the operating margin improving from 27% in 2023 to 32% in 2024. This improvement was driven by revenue growth and cost management, including a reduction in general and administrative expenses as a percentage of revenues from 5% in 2023 to 4% in 2024.

Segment-wise, Google Services remained the largest contributor to revenues and profitability. Google Services revenues grew to $304.9 billion in 2024, up from $272.5 billion in 2023, while operating income for the segment increased by $25.4 billion to $121.3 billion. This growth was driven by higher advertising revenues, particularly from Google Search and YouTube ads, as well as increased revenues from subscriptions, platforms, and devices.

Google Cloud demonstrated remarkable growth, with revenues increasing by 31% year-over-year to $43.2 billion in 2024. The segment achieved an operating income of $6.1 billion, a significant improvement from $1.7 billion in 2023, reflecting both revenue growth and operational efficiencies. This marks a continued shift towards profitability for the Cloud segment.

Other Bets, while a smaller contributor, saw revenues increase to $1.65 billion in 2024 from $1.53 billion in 2023. However, the segment's operating loss widened slightly to $4.44 billion, primarily due to increased employee compensation expenses and other costs.

Alphabet's cash flow from operating activities reached $125.3 billion in 2024, up from $101.7 billion in 2023, reflecting strong cash generation capabilities. This increase was driven by higher cash receipts from customers, partially offset by increased payments for cost of revenues and operating expenses. Net cash used in investing activities rose to $45.5 billion, primarily due to higher capital expenditures on technical infrastructure and property investments.

The company returned significant value to shareholders through stock repurchases and dividends. Stock repurchases totaled $62.2 billion in 2024, consistent with prior years, while Alphabet initiated dividend payments of $7.4 billion during the year, marking a new milestone in shareholder returns.

Geographically, the United States accounted for 49% of total revenues in 2024, up from 47% in 2023, reflecting strong domestic growth. EMEA contributed 29%, APAC 16%, and Other Americas 6%, with international revenues being affected by foreign currency exchange rate fluctuations.

Other income (expense), net, increased significantly to $7.4 billion in 2024 from $1.4 billion in 2023. This was primarily driven by net gains on equity securities and a reduction in foreign currency exchange losses. The gains on equity securities were largely due to fair value adjustments related to observable transactions.