Google parent company, Alphabet, has announced its financial results for Q3, ending September 30, 2023. The company reported total revenues of $76.69bn, an increase of 11 percent year-on-year (YoY).
Google Cloud Q3 revenue continued to grow, hitting $8.41bn, an increase of 22 percent, however, this fell short of analysts’ expectations of $8.6bn and as a result, shares for Alphabet fell more than six percent.
Ruth Porat, president and chief investment officer; CFO said: “The fundamental strength of our business was apparent again in Q3, with $77bn in revenue, up 11 percent YoY, driven by meaningful growth in Search and YouTube and momentum in Cloud. We continue to focus on judicious capital allocation to deliver sustainable financial value.”
Google Cloud’s continued growth across the last few quarters has been attributed to the company’s continued investment in GenAI solutions and innovations. In particular, the goliath has reported that active AI projects on Vertex AI have grown seven times in Q3.
It comes as Google continued to provide regular updates to its Vertex AI platform in Q3, with thousands of users now leveraging over 100 AI models (including third-party and open-source models) in the Vertex model gardens to build GenAI apps and more. Duet AI tools are also now reported to be assisting thousands of companies in content and original image curation, data organization and cybersecurity assistance.
In the company’s earnings call, CEO Sundar Pichai, said: “We see continued growth, with Q3 revenue of $8.4bn, up 22 percent.
“Today, more than 60 percent of the world’s thousand-largest companies are Google Cloud customers. At Cloud Next, we showcased amazing innovations across our entire portfolio of Infrastructure, Data and AI, Workspace Collaboration and Cybersecurity solutions.
“We offer advanced AI-optimized infrastructure to train and serve models at scale and, today, more than half of all funded generative AI startups are Google Cloud customers. This includes AI21 Labs, Contextual, Elemental Cognition, Writer and more.
“…With Duet AI, we’re helping leading brands like PayPal and Deutsche Bank boost developer productivity. And we are enabling retailers like Aritzia and Gymshark to gain new insights for better and faster business results. In fact, companies are increasingly using AI for the purpose of analyzing data and customers are choosing Google Cloud because we are the only large cloud provider with a unified platform to analyze structured and unstructured data.”
This news follows Google’s 25th birthday, where the company showcased new GenAI innovations and new partnerships at its flagship Google Cloud Next event in London. The innovations include the announcement of a new app in conjunction with Gymshark, powered by GenAI and also created in collaboration with Deloitte. Additionally, the company also announced its partnership with Formula E and unveiled a new app created with Unilever and Accenture.