Artificial intelligence impact on Microsoft and Alphabet’s revenues

The revenues of US technology companies Microsoft and Google's parent company Alphabet increased in the October-December period of 2023. Microsoft's revenue increased from $ 52.7 billion to $ 62 billion, while Alphabet's revenue increased from $ 76 billion to $ 86.3 billion in the October-December 2023 period. The company's CEO Sundar Pichai pointed out that the profit was largely due to artificial intelligence and innovation. Microsoft, which accepted the 3-month period ending December 31, 2023 in its calendar as the second quarter of fiscal 2024, announced its balance sheet. Accordingly, the company's revenue increased by 18 percent in the October-December period of 2023 compared to the same period of the previous year, reaching $ 62 billion. Microsoft had revenue of $ 52.7 billion in the same period of 2022. The company's net profit increased by 33 percent in the same period, reaching $ 21.9 billion. The company’s net profit had been $16.4 billion in the October-December period of the previous year. Microsoft’s net profit per share, which was calculated as $2.20 in the last three months of the previous year, was recorded as $2.93 last year. It was reminded that the US technology giant completed its acquisition of Activision Blizzard during the said balance sheet period. Artificial intelligence has moved on to large-scale implementation Microsoft CEO Satya Nadella, whose evaluations were included in the statement, drew attention to the fact that the company has moved on from talking about artificial intelligence to implementing artificial intelligence on a large scale. Nadella said, “By infusing artificial intelligence into every layer of our technologies, we are gaining new customers and helping to provide efficiency gains with new advantages in every sector.” Microsoft Chief Financial Officer (CFO) Amy Hood also reported that “Microsoft Cloud” revenue increased by 24 percent compared to the previous year, reaching $33.7 billion. Alphabet’s revenue exceeded expectations Google’s parent company Alphabet also announced its balance sheet for the last quarter of last year. Accordingly, Alphabet's revenue in the October-December 2023 period increased by 13 percent compared to the same period of the previous year, reaching $86.3 billion. The company had revenue of $76 billion in the fourth quarter of 2022. While Alphabet's total revenue exceeded analysts' estimates in the last quarter of last year, advertising revenue of $65.5 billion fell short of expectations. The company's net profit also increased by approximately 52 percent in the last quarter compared to the same period in 2022, reaching $20.7 billion. Alphabet had net profit of $13.6 billion in the same quarter of the previous year. Alphabet's earnings per share also increased from $1.05 to $1.64. The company's total revenue last year was calculated as $307.4 billion. Alphabet had announced revenue of $282.8 billion in 2022. "Profit largely driven by AI and innovation" Alphabet's net profit in 2023 was also recorded as $ 73.8 billion. The company had a net profit of about $ 60 billion the previous year. The company's CEO Sundar Pichai said they were pleased with the continued strength of Google search and the increasing contribution of YouTube and the Cloud, pointing out that these were due to the company's AI investments and innovations. Alphabet CFO Ruth Porat also said, "We remain committed to our work to permanently restructure our core cost while investing to support our growth opportunities."