Google Cloud has cracked US$10bn in quarterly revenues and search is up according to Google’s parent company Alphabet's latest financial results for the three months to June 30, 2024.

Overall, the group reported revenues of US$84 billion in the quarter ending 30 June 2024, up $10 billion on Q2 2023 results, representing 7% year-on-year revenue growth. Operating income was also up to $27.4 billion, while net income was $23.6 billion, up from $18.3bn a year prior.

One of the big performers was the Google Cloud business, which for the first time exceed $10bn in quarterly revenues and $1 billion in operating profit.

By segment, Google Services brought in US$73.928 billion for the second quarter of 2024, Google Cloud US$10.347 billion, there was $365 million from other bets and $102 million from hedging gains.

Google Services includes products and services such as ads, Android, Chrome, devices, Google Maps, Google Play, Search, and YouTube. Google Services generates revenues primarily from advertising; fees received for consumer subscription-based products such as YouTube TV, YouTube Music and Premium, and NFL Sunday Ticket, as well as Google One; the sale of apps and in-app purchases and devices.

Google Cloud includes infrastructure and platform services, collaboration tools, and other services for enterprise customers. Google Cloud generates revenues primarily from consumption-based fees and subscriptions received for Google Cloud Platform services, Google Workspace communication and collaboration tools, and other enterprise services.

Google search was also up, reporting $48.5bn in Q2 revenues, an increase of nearly $6 billion on the corresponding quarter last year (Q2, 2023: $42.6bn), while YouTube ads chalked up $8.6bn in quarterly revenues. Google Advertising revenues were up nearly $6 billion to $64.6bn.

The solid figures for advertising also come just a day after Google did an about turn on third-party cookie deprecation and announced its intention to retain cookies. It's a decision many across the industry told Mi3 was driven as Google finds itself trapped between a regulatory hard place and the rock it has built its fortune on – the vast river of gold flowing from its near monopoly control of search (AI incursions notwithstanding) along with its wider adverting ecosystem.

In APAC, revenues hit US$13.8 billion for the quarter ended June 30 2024, up 9% YoY on a reported basis (up 13% constant currency) and 4% on the last quarter on a reported basis (6% constant currency).

"Our strong performance this quarter highlights ongoing strength in Search and momentum in Cloud," Alphabet CEO, Sundar Pichai, said. "We are innovating at every layer of the AI stack. Our longstanding infrastructure leadership and in-house research teams position us well as technology evolves and as we pursue the many opportunities ahead."

President and Chief Investment Officer; CFO Ruth Porat, noted the 14% year-on-year revenue upift driven by Search as well as Cloud.

"As we invest to support our highest growth opportunities, we remain committed to creating investment capacity with our ongoing work to durably re-engineer our cost base," she said.

As announced on April 18, 2024, Google has further consolidated teams that focus on building AI models across Google Research and Google DeepMind to accelerate progress in AI. AI model development teams previously under Google Research in Google Services segment are included as part of Google DeepMind, reported within Alphabet-level activities, prospectively beginning in the second quarter of 2024.