Google Posts Strong Q3 Results Driven by Search and YouTube; Investing Heavily in AI

Q3 revenue was $76.7 billion, up 11% year-over-year. Search and YouTube advertising drove growth. Operating income was up 25% to $21.3 billion.

Google rolled out generative AI capabilities like SGE in Search and Bard conversational assistant. Seeing positive user feedback so far.

Cloud revenue grew 22% year-over-year to $8.4 billion. Seeing customer optimization but AI adoption increasing.

YouTube ad revenue up 12% year-over-year. Growth in both brand and direct response advertising.

Expect elevated investment levels in Q4 and 2024, especially on technical infrastructure for AI compute. Focused on re-engineering cost base.