Alphabet and Google CEO Sundar Pichai is optimistic about the future of the tech giant, expecting YouTube and Cloud business to surpass $100 billion in revenue by the end of 2024. During Alphabet’s first-quarter earnings call, Pichai highlighted the company’s impressive growth, noting that it took Google over 15 years to reach $100 billion in annual revenue, but in just the last six years, they have exceeded $300 billion.
The first-quarter results for Alphabet were strong, with a revenue of $80.5 billion, up 15% year-on-year. Revenue from Search, Cloud, and YouTube also saw significant growth, with Search bringing in $46 billion, Cloud at $9.5 billion, and YouTube at $8 billion. Operating margin improved to 32% in Q1 from 25% a year ago.
Pichai emphasized the company’s focus on AI monetization through Ads, Cloud, and subscriptions, highlighting the success of Google One, which now has over 100 million paid subscribers. Google has six products with more than 2 billion monthly users and 15 products with half a billion users, providing ample opportunities to introduce new AI features and improve user experiences.
In terms of artificial intelligence innovations in search, Pichai mentioned the company’s experiments with Search Generative Experience and the rollout of AI overviews in the U.S. and the U.K. These efforts aim to enhance the search experience by providing a mix of actual answers linked to sources across the web and offering a variety of perspectives in an innovative way.
Overall, Pichai’s outlook for Alphabet and Google is positive, with a clear path to continued growth and success in the coming years.