Sector: Communication Services|Industry: Internet Content & Information|Market Cap: $2.11T|Employees: 182.5K
Alphabet is a multinational technology conglomerate holding company that generates revenue primarily through advertising, cloud services, and other products and services. The company holds a dominant market position in online search and advertising, leveraging its extensive user base and advanced AI capabilities for targeted advertising and personalized user experiences. Alphabet's key markets include North America, Europe, and Asia-Pacific, with a growing presence in emerging markets.
Alphabet's consolidated revenue reached $307.4 billion in 2023, a 9% increase compared to $282.8 billion in 2022. This growth was primarily fueled by an 8% rise in Google Services revenue, totaling $19 billion, and a significant 26% surge in Google Cloud revenue, amounting to $6.8 billion.
Cost of revenues increased by $7.1 billion, reaching $133.3 billion in 2023 from $126.2 billion in 2022. Key drivers included higher content acquisition costs (particularly for YouTube), increased compensation expenses (including severance charges), and a rise in TAC.
Operating expenses grew by $7.978 billion to $89.8 billion in 2023. This was primarily attributed to increased compensation expenses, including severance charges related to workforce reduction, and expenses associated with office space optimization efforts.