Alphabet Ceo sundar pichai has committed to continue investment In its cloud Arm, as the firm's fourth -Quarter Results Confirmed Google Cloud's Revenue Increased by 30% to $ 12bn in the three months to 31 December 2024.
The year-on-yar uptick in Google Cloud's Quarterly Revenue was “LED by Growth” in the company's core cloud infrastructure offers, as well as growing for article Uecture and Generative AI (Genai) Proposions, said alphabet in Its financial statement.
The company previously forecast that it would end 2024 with its combined Cloud and YouTube divisions on an annual revenue run rate of more than $100bn, but the performance of both has exceeded expectations, said Pichai.
“Our Ai-Powered Google Cloud Portfolio is seeing Stronger Customer Demand, and YouTube Continues to be the Leader in Streaming Watch-Time and Podcasts,” said a statement.
“Together, [Google] Cloud and YouTube Exited 2024 at Annual Revenue Rate of $ 110BN… We are confident of the options ahead, and to accelerate our program, We Expect to Invest Application $ 75Bn in Capital 2025. “
On a conference call, to discus the company's financial results in more details, pichai said the company was rolling out products to the market “Faster than ever before” UE it is seeing.
“Our Sophisticated Global Network of Cloud Regents and Datantres Provides a Powerful Foundation for Us and Our Customers, Directly Driving Revenue,” He Said, in Comments Transcribed By Seeking alpha,
“We have a unique advantage, beCause we develop every component of our technology stack, includeware, compilers, models and products. This Approach Allows Us to Drive Efficiency at Every Level, From Training and Serving, to developer productivity. “
The Knock-on Effect of this is that the company was able to build 11 new cloud regions and datacentre campuses In the us and the rest of the world in 2024, while making incremental improvements in the performance of the hardware that sits within these facilitations during this time period.
“Google Datacentres Deliver Nearly [four times] More Computing Power Per Unit of Electricity Compared to just five years ago. These Efficiency, Coupled With the Scalability, Cost and Performance We Offer, Are Whom Organizations Increasingly Choose Google Cloud's Platform, “Pichai continued.
“In Fact, Today, Cloud Customers Consume more than [eight times] The Compute Capacity for Training and Inferencing Compared to 18 months ago. We'll continue to invest in our cloud business to ensure we can address the increase in customer demand. “
On that point, pichai said the number of “first-time commitments” it received from new Google Cloud Customers in 2024 was more than double the number the Got in 2023.
“We also deepened [our existing] Customer Relationships, “He Added. “Last Year, We Closed Several Strategic Deals over $ 1bn, and the number of deals over $ 250m doubled from the prior year.”
LEE SUSTAR, Principal Analyst at It Market Watcher Forrester, Said The Way Pichai Flagged the performance of Google Cloud and YouTube in its results judges Unes are not soly dependent on the company's search advertising business .
“If Google Cloud was a separate company, its ai-driven earnings growth would simply please investors and Confirm to Customers that COMPANY IN LONG-TERM and Innovative Playm Aid Sustar.
“However, google cloud is part of a complex feedback loop to the rast of the alphabet portfolio that also requires big investments in Ai, Such as the ad-driven search business and YouTube.
“That's apparently was alphabet ceo sundar packhai packaged cloud and youtube as a combined success story, Citing an annual run rate of $ 110bn – a message to invested Than in the past.
“Enterprise business customers looking for long-term bets on ai cloud services will have to take a closer look and assess the investment plans for google cloud and is competitionrs,”