Alphabet is one of the most innovative companies in the modern technological age. Over the last few years, the company has evolved from primarily being a search-engine provider to cloud computing, ad-based video and music streaming, autonomous vehicles, healthcare providers and others. In the online search arena, Google has a monopoly with more than 94% of the online search volume and market. Over the years, the company has witnessed increase in search queries, resulting from ongoing growth in user adoption and usage, primarily on mobile devices, continued growth in advertiser activity, and improvements in ad formats.
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Alphabet is one of the most innovative companies in the modern technological age. Over the last few years, the company has evolved from primarily being a search-engine provider to cloud computing, ad-based video and music streaming, autonomous vehicles, healthcare providers and others. In the online search arena, Google has a monopoly with more than 94% of the online search volume and market. Over the years, the company has witnessed increase in search queries, resulting from ongoing growth in user adoption and usage, primarily on mobile devices, continued growth in advertiser activity, and improvements in ad formats.
The company is gaining market share in the cloud-computing, driven by continued strength in Google Cloud Platform and Google Workspace.
Alphabet also enjoys a dominant position in the autonomous vehicles market, thanks to Waymo’s relentless efforts. In addition, it has bolstered its footprint in the healthcare industry with its life science division, Verily. The company has also become a renowned name in the world of entertainment on the back of YouTube.
Alphabet is also known as the maker of smartwatches (Pixel Watch), laptops and tablets (Chromebooks), and smart home products (Google Nest).
Alphabet, headquartered in Mountain View, CA, runs several businesses, most of which come under Google, which reports under two segments — Google Services and Google Cloud. The non-Google businesses fall under the Other Bets segment.
Total revenues were $307.4 billion in 2023, up 9% from 2022. Google Services, Google Cloud and Other Bets generated 88.7%, 10.8% and 0.5% of total revenues, respectively.
The Google Services includes products and services such as ads, Android, Chrome, devices, Gmail, Google Drive, Google Maps, Google Photos, Google Play, Search, and YouTube. The segment generates revenues primarily from performance and brand advertising, which remains crucial for the overall business. Ad revenues accounted for 77.4% of the total revenues in 2023.
Google Cloud is comprised of Google Cloud Platform and Google Workspace. Its key capabilities include AI infrastructure, database and analytics, collaboration tools, cybersecurity and generative AI.
Other Bets is a combination of multiple businesses, generating revenues primarily from the sale of healthcare-related and internet services.