Release Date: April 25, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: Can you discuss the impact of generative AI on search behavior and monetization trends?
A: Sundar Pichai, CEO & Director of Alphabet Inc., highlighted that generative AI in Search is expected to expand the types of queries Google can serve, allowing for more complex questions and improved user experiences. He expressed optimism about the transition, emphasizing that good performance on the organic side typically leads to strong monetization.
Q: What are the ongoing efforts to moderate expense growth throughout 2024?
A: Ruth M. Porat, President, CIO, Senior VP & CFO of Alphabet Inc., explained that the company is focused on durably reengineering its cost base, which includes prioritizing projects, enhancing organizational efficiency, and optimizing technical infrastructure. These efforts are aimed at managing the increasing costs associated with higher capital expenditures.
Q: How is the integration of generative AI features progressing on the main Search page, and what types of queries are benefiting most from these features?
A: Sundar Pichai noted that generative AI overviews are being tested primarily on complex queries in the U.S. and U.K., showing positive user feedback and increased engagement. The company plans to continue evolving these features throughout the year.
Q: Can you provide insights into the expected CapEx for the remainder of the year and its impact on future investments?
A: Ruth M. Porat indicated that quarterly CapEx is expected to be at or above the $12 billion level seen in Q1, driven primarily by investments in technical infrastructure to support growth in Cloud and innovation in Search.
Q: What is driving the visibility for YouTube and Cloud to exit 2024 at a $100 billion run rate?
A: Ruth M. Porat attributed this outlook to the strong ongoing momentum and performance across the company, particularly in Cloud services and YouTube, underpinned by robust growth and effective monetization strategies.
Q: How is Alphabet planning to address the large addressable market for Google Cloud Platform (GCP) and what are the opportunities and constraints?
A: Sundar Pichai discussed that the AI transformation is prompting a reevaluation of tech stacks across industries, leading to increased discussions with potential GCP customers. The company aims to address barriers to switching to cloud services by enhancing ease of use and continuing to invest in both organic growth and partnerships.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
