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Alphabet Inc. stock research

Jun 30, 2024

FY2024 Q2

Alphabet (GOOGL) Gross Margin — Quarter Ended Jun 30, 2024

Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Cost of revenue also rose, but gross margin was unchanged from the prior quarter and improved relative to the year-ago period.

Gross margin takeaway

Quarter ended Jun 30, 2024 · FY2024 Q2

Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Cost of revenue also rose, but gross margin was unchanged from the prior quarter and improved relative to the year-ago period.

  • Gross margin remained stable sequentially, indicating that revenue and cost of revenue grew at a similar pace.
  • Compared to the prior quarter, gross margin was unchanged. Versus the same quarter a year ago, gross margin was higher.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

58.1%

Gross profit

$49.2B

Revenue

$84.7B

Cost of revenue

$35.5B

Quarter-over-quarter change

-0.0 pts

Year-over-year change

+0.9 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Sep 30, 2023$76.7B$43.5B$33.2B56.7%
Dec 31, 2023$86.3B$48.7B$37.6B56.5%
Mar 31, 2024$80.5B$46.8B$33.7B58.1%
Jun 30, 2024$84.7B$49.2B$35.5B58.1%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Mar 31, 2024

-0.0 pts

Year-over-year change

Jun 30, 2023

+0.9 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

Gross margin remained stable sequentially, indicating that revenue and cost of revenue grew at a similar pace.

Compared to the prior quarter, gross margin was unchanged. Versus the same quarter a year ago, gross margin was higher.

Monitor the trend in traffic acquisition costs and TAC rate as noted in the filing, as fluctuations could affect future margins.