Alphabet and Google CEO Sundar Pichai is setting high expectations for the company’s future, predicting that YouTube and Cloud business will surpass $100 billion in revenue by the end of 2024. This ambitious goal comes on the heels of Alphabet’s impressive first-quarter earnings report, which saw a revenue of $80.5 billion, up 15% year-on-year.
Pichai highlighted the rapid growth of Google’s revenue, noting that it took more than 15 years to reach $100 billion in annual revenue, but in just the last six years, the company has surpassed $300 billion. He credited the success to investments in new businesses like YouTube and Cloud, which are expected to reach a combined annual run rate of over $100 billion by 2024.
The tech giant’s first-quarter results were driven by strong performance from Search, YouTube, and Cloud, with revenue from Search reaching $46 billion, Cloud at $9.5 billion, and YouTube at $8 billion. Operating margin also improved to 32% from 25% a year ago.
In addition to the impressive financial results, Alphabet announced its first-ever quarterly dividend of 20 cents per share. Pichai also highlighted the company’s focus on AI monetization through Ads, Cloud, and subscriptions, as well as the success of Google One, which now has over 100 million paid subscribers.
With six products boasting more than 2 billion monthly users and 15 products with half a billion users, Google has a vast reach to bring new AI features and multimodal capabilities to users worldwide. Pichai also discussed the company’s AI innovations in search, including the introduction of AI overviews to the main search results page to improve the search experience.
Overall, Alphabet’s strong first-quarter results and ambitious revenue goals demonstrate the company’s continued success and innovation under Pichai’s leadership.