Q4 23 EPS

$1.64

BEAT +3.14%

Est. $1.59

Q4 23 Revenue

$86.31B

BEAT +1.15%

Est. $85.33B

vs S&P Since Q4 23

+123.3%

BEATING MARKET

GOOGL +172.5% vs S&P +49.2%

Full Year 2023 Results

FY 23 EPS

$5.80

FY 23 Revenue

$307.39B

Market Reaction

Did GOOGL Beat Earnings? Q4 2023 Results

Alphabet closed out fiscal 2023 on a strong note, posting fourth-quarter earnings per share of $1.64 against a consensus estimate of $1.59, a beat of 3.14%, while revenue of $86.31 billion topped expectations of $85.33 billion and grew 13.5% year ove… Read more Alphabet closed out fiscal 2023 on a strong note, posting fourth-quarter earnings per share of $1.64 against a consensus estimate of $1.59, a beat of 3.14%, while revenue of $86.31 billion topped expectations of $85.33 billion and grew 13.5% year over year. The standout driver behind the quarter's margin expansion was Google Cloud, which generated $9.19 billion in revenue and swung to an operating profit of $864 million, compared to an operating loss of $186 million in the year-ago period, underscoring the segment's growing contribution to Alphabet's bottom line. Google Search remained the company's core revenue engine at $48.02 billion, while YouTube ads climbed to $9.20 billion from $7.96 billion a year earlier. Operating margin widened to 27% from 24%, reflecting sustained cost discipline that has characterized much of the broader tech sector's posture heading into 2024. CEO Sundar Pichai framed the results around artificial intelligence momentum, positioning Alphabet firmly in what he called the "Gemini era."

Key Takeaways

  • Ongoing strength in Google Search revenue, growing to $48.0 billion from $42.6 billion YoY
  • YouTube ads revenue growth to $9.2 billion from $8.0 billion YoY
  • Google Cloud turning profitable with $864 million operating income vs. $186 million loss YoY
  • Google subscriptions, platforms, and devices revenue growth to $10.8 billion from $8.8 billion YoY
  • Operating margin expansion to 27% from 24% YoY
  • Cost base re-engineering including workforce reductions and office space optimization
24/7 Wall St

GOOGL YoY Financials

Q4 2023 vs Q4 2022, source: SEC Filings

24/7 Wall St

GOOGL Revenue by Segment

With YoY comparisons, source: SEC Filings

Q2 24 Q1 26
24/7 Wall St

GOOGL Revenue by Geography

With YoY comparisons, source: SEC Filings

Q2 24 Q1 26

“We are pleased with the ongoing strength in Search and the growing contribution from YouTube and Cloud. Each of these is already benefiting from our AI investments and innovation. As we enter the Gemini era, the best is yet to come.”

— Sundar Pichai, Q4 2023 Earnings Press Release