Google’s parent company, Alphabet LLC, will pay its first ever dividend, even as the group’s earnings for Q1 2024 exceeds estimates.
The group reported a revenue of $80.5 billion in Q1 2024, marking a 15% year-on-year growth from $69.8 billion posted in Q1 2023. Its net income for the period stood at $23.7 billion.
Based on its strong financial performance during the quarter, it was announced that the group’s board of directors had declared a cash dividend of $0.20 per share. It is noted that it plans to pay quarterly cash dividend to its shareholders in the future.
Speaking on the group’s Q1 2024 result, Sundar Pichai, the CEO noted,
- “Our results in the first quarter reflect strong performance from Search, YouTube and Cloud. We are well under way with our Gemini era and there’s great momentum across the company. Our leadership in AI research and infrastructure, and our global product footprint, position us well for the next wave of AI innovation.”
Key Highlights Q1 2024 vs Q1 2023
Revenue: $80.5 billion, +15% YoY
Total costs and expenses: $55.1 billion, +5% YoY
Operating income: $25.5 billion, +46% YoY
Operating margin: 32%, +700 bps YoY
Pre-tax profit: $28.3 billion, +56% YoY
Net income: $23.7 billion, +57% YoY
Earnings per share: $1.89, +62% YoY
What you should know
- The bulk of the group’s revenue in Q1 2024 came from Google Search & others, with a turnover of $46.2 billion, a 14% growth from the $40.4 billion posted in Q1 2023.
- Alphabet generated $8.09 billion in YouTube ads during the quarter, marking a 21% YoY growth from the $6.7 billion generated during the corresponding quarter in 2023.
- There was also a 28% YoY growth in the revenue generated from Google Cloud, as $9.6 billion was posted in Q1 2024 in contrast with $7.5 billion posted in Q1 2023.
- During the quarter, $38.7 billion of the group’s revenues came from the United States. EMEA (Europe, Middle East, and Africa) generated $23.8 billion of the group’s revenue during the quarter, while Asia-Pacific made $13.3 billion.
- Alphabet’s board of directors also authorized a share buyback worth $70 billion. As part of the share buyback, only Class A and Class C shares will be bought.
- Class A shares are referred to as common stock. These shares adhere to the conventional principle of one share equating to one vote, while Class C grants no voting privileges.
