Alphabet Inc., Google’s parent company, reported strong fourth-quarter results for fiscal 2024, primarily driven by its commitment to AI.

Alphabet announced revenues of $96.5 billion for Q4 2024, up 12% from last year.

Google Services, including Search and YouTube ads, grew by 10% to $84.1 billion.

Google Cloud increased revenues by 30% to $12.0 billion as more businesses adopted its AI services.

Operating income rose by 31%, and net income increased by 28% to $26.5 billion.

AI-Driven Growth

CEO Sundar Pichai highlighted the company’s AI achievements and recent launches during the earnings call.

Pichai said:

“Q4 was a strong quarter driven by our leadership in AI and momentum across the business. We’re making dramatic progress across compute, model capabilities, and in driving efficiencies. We’re rapidly shipping product improvements, and seeing terrific momentum with consumer and developer usage.”

Infrastructure Investments

Alphabet is investing heavily in its infrastructure, launching new data centers and subsea cable projects to improve global connectivity.

Pichai stated:

“We broke ground on 11 new Cloud regions and data center campuses in places like South Carolina, Indiana, Missouri, and around the world. We also announced plans for seven new subsea cable projects, strengthening global connectivity.”

These efforts will support the growth of AI services, as data centers now provide nearly four times more computing power for the same energy.

Implications for Search and Marketing

Google reported that its AI-powered search features are gaining traction. AI Overviews are now available in more than 100 countries.

Circle to Search, available on over 200 million Android devices, is popular among younger users, who now use it for more than 10% of their searches.

SEO professionals and digital marketers should brace for further changes, as Pichai declared that “2025 is going to be one of the biggest years for Search innovation yet.”

The company’s $75 billion capital expenditure plan for 2025 suggests significant investments in search technology and AI capabilities.

Looking Ahead

Google’s Q4 results highlight its focus on AI. Overall revenue increased 12%, and the cloud business grew 30%. Profits increased as well, with operating income rising 31%.

The company’s investments in data centers and undersea cables will support global AI growth.

New AI features, such as Search Overviews and Circle to Search, are changing user behavior, so SEO teams should prepare for more changes in 2025.

Keep an eye on Google’s $75 billion spending plan to expand AI technology.

Featured Image: Dennis Diatel/Shutterstock

https://www.searchenginejournal.com/googles-q4-earnings-point-to-an-ai-focused-future/539155/