Alphabet (GOOG) 25 Apr 242024 Q1 Earnings call transcript

Welcome, everyone. Thank you for standing by for the Alphabet First Quarter 2024 Earnings Conference Call. [Operator Instructions]

I would now like to hand the conference over to your speaker today, Jim Friedland, Director of Investor Relations. Please go ahead.

you. Thank and First everyone, Conference XXXX to Call. welcome afternoon, Quarter Alphabet's Earnings Good are Schindler, Pichai, us Sundar With today Philipp and Porat. Ruth

quickly I'll cover safe harbor. Now the

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Thank employees our of the and around to partners are products, thank building heart services for businesses this helpful world to who the and world. innovative focus the and want progress opportunities on I continue who at around Philipp? you. new

Thanks, hi, Sundar, and everyone.

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YouTube. I monetization. strategy. deep Sundar's updates build A to into Moving few our remarks. leads on to all which creation, quarter, drives starts It to viewership, went which Last with

about all businesses. year-on-year channels YouTube their their tools and the creators amazing XX%. XXXX, In more and Shorts is to which people created of content, number the giving build on before, grew creation, grow create content audiences ever uploading than First,

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to In XX the relative in alone. U.S., in-stream the a of the past than viewing has monetization in sequential improvement the first rate more XX-point quarter including doubled Shorts months,

lifestyle, sports, we most ads Just and with Shorts get for lineups ways new last fashion beauty, to week, YouTube the their new of brands Select, including introduced on and entertainment. out

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two on wrap, how we're impact our best Google. I and highlights helping the partners Before transform accelerate across with quick

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you're Ruth, up.

Thank you, Philipp.

for driven, by segment My our our pleased in base. durably level, Cloud the particular, We by as for to comments the the outlook. very Search ongoing cost quarter reengineer strength are results as results well state first at efforts I unless in start financial with Alphabet first conclude the will otherwise. be our with on I results year-over-year quarter with comparisons will followed and and

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you. will now take Philipp, Sundar, Thank and your I questions.

Brian comes Morgan first [Operator question Our with Instructions] Nowak from Stanley.

two. I have

one, one. Then e-commerce. one ask examples as give about where a Ruth, the of first my sort wanted just That into little from and drill growth can Can to still in potential first we moderate to of you talked when how more to the past query continue is second query know The been in the go in Has I overall any overall reengineer more trends sort us the see commercial you in place durably here, for or I I talked you just trends? about you throughout some XXXX. these about growth. your to more to Philipp, sort to optimization behavior. expense you bit search for continue work grow. streams base commercial There's trends been monetizable all there query OpEx around of of changes new entrants areas moving ask efforts

many Thanks, broadly, that always I Brian. the question, when look, monetization on things think follows. found organic your well To we've over side, first work years,

are of queries well. trends Search, type answer the can see generative the we and carry think are our serve transition at will Overall, AI to carry with expand We typically, categories. I experience it's means. this our what measured still to across with as over we query I about positive we user more overviews, put well AI front, be complex as, questions we can users. over Obviously, and the think that but So in seems general, going we all early, in

said, much they're the streams, of various so headwind previously. from both ongoing. reengineering question efforts as and process very our in on growth, very around but I the of of prioritization, base. cognizant and higher to cost that have pace been durably we've And you about second we've remain associated are efforts the These this terms product are efficiency of and with expenses comments, these expense ongoing very starts the I depreciation higher ongoing. It opening the on the And we And and the made point structure. focused with talked same increasing in are work Sundar calling organizational slow with what CapEx, work all we and we

deliver And so the suppliers as of the Sundar infrastructure, the we and through think our cost ongoing. vendors, is really work teams they work you've have streams procurement combining it we've velocity then but to use about, platforms which the work streamlining ongoing with our ecosystems, company devices to with experiences, reengineering work unifying an the operations also and and base, example streams, within about us are are us higher-quality seen why like the under durably what to; our other a on not that we doing the around enables is real because umbrella, technical talked with which only these all alluded AI; he them Sundar the of estate we're example, optimization, which and good and and all referenced; move product products with you greater the past, helps work efficiency. And in services area talked

Our Doug with from JPMorgan. comes Anmuth next question

generative queries into talked to of of just And page. you search. Search talk bringing about you features Can for cadence core we more those or the Sundar, what AI more think within best so about you main adopt kind should just about that's the think scenarios working features that how of far? do continuing

higher can assume generally that as rating and this in expect Ruth, CapEx year it's well? spending, billion for I And above that next is reasonable run And $XX year? should XQ, the CapEx then very on we know we early, but

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CapEx, roughly said And billion year in do then I we had above here in or at the terms the opening QX. $XX we as CapEx throughout the quarterly CapEx of be to cash in comments, expect

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Goldman Our Sachs. comes from next question Sheridan with Eric

as at a the operating on the your bit question towards the Maybe of of balance technology if the of and longer-term continuing a just could challenges forward where a opportunities picture I you earlier call at the how lot moving beginning going wanted like for to both one time scale there's of narratives, and organization strike a nature little to elements trying margins. longer-term if invest up about Sundar. still to this know Sundar, back the framing as both initiatives we innovation for to while in come growth big of well you talk balance comments a and and see

AI transition, opportunity. a definitely the it's time. think for I I for been long a We've gearing Obviously, kind think up question. Great Eric. once-in-a-generation this of Thanks, an

we opportunities and which for we imagine You see continue is a and of built long the to we've are can in definitely building TPUs up deliver. going The have to real research so time. XXXX, gearing up we started innovation, been scale

think YouTube, can that see the pace the a first in it Waymo breadth of Cloud, impacts be we underlying. I entire innovation and rapid it in and way we on. be time, be it it Search, so AI And company, of it for work be the on a horizontal

opportunity a way So it, see that and do leveraged as it's a ahead. I real very to

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UBS. comes Stephen with next Ju Our from question

the approaching to it's update us monetization Philipp, the an I Shorts. and think vertical Ads that you've for advertisers X-year sequentially. with of help automation YouTube of transfer to YouTube But And products what I think on the in has mind, they're launch anniversary on ad array launched screen. an given pickup doing tools

into this cannot already monetization any case seen on screen? the last what you there to is how structural match the why the as based reasons X clients? And over that among what horizontal on advertiser are the can cite So translating you've buy-in years, is secondly, your

in first Yes. I is monetization has on the with this start question, relative fact of XX I a Shorts Look, how quarter. the all. this in in last great And the that more mentioned months. mean, viewing let's of YouTube performance specifically very than doubled strong was rate in-stream Shorts to U.S., the

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Barclays. Our next Ross question with comes from Sandler

question a searches. AI had I Sundar, about smartphone-based

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Colin Baird. last our And from Sebastian comes question with

changes I I questions whether those engagement on SGE any the guess to a there behavior, guess the I spent particular increase assume queries traditional of first, later a on shift, in focus the hardware of increase or back map, that's about I'm generative the secondly, we level products. then way for or sort that you answers. And as the some some keep the well should out areas point is in along Search. search overall in some in as in that mind of hardware terms of hear more on core quantify with year, But wondering, road this we'll that more an of launches in follow-up of in time would of half? both

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further for And back to to Jim our over like remarks. today. question-and-answer the I'd any that turn conference concludes session Friedland for

We evening. everyone, call. you you, our us XXXX Thanks, again good to forward a on joining and Thank quarter have look for with second speaking today.

Thank you, conference today's Thank This everyone. participating. for concludes you call.

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