Q3 2024 Alphabet Inc Earnings Call

Can only mode.

Speaker Change: After the speaker presentation, there will be a question and answer session to ask a question. During the session you will need to press star one on your telephone I would now like to hand, the conference over to your Speaker today, Jim Friedland Senior director of Investor Relations. Please go ahead.

Jim Friedland: Thank you, good afternoon everyone and welcome to Alphabet's third quarter 2020-24 earnings conference call. With us today, our Sender Pichai, Philipp Schindler, and Annaut Ashkenazi. Now, I'll quickly cover the safe harbor.

Jim Friedland: Thank you good afternoon, everyone and welcome to alphabet third quarter 2024 earnings conference call with US today are Sundar Pichai Philipp Schindler <unk> Ashkenazi.

Jim Friedland: Some of the statements that we make today regarding our business, operations, and financial performance may be considered forward-looking. Such statements are based on current expectations and assumptions that are subject to a number of risks and uncertainties.

Jim Friedland: Now I'll quickly cover the safe Harbor.

Jim Friedland: Some of the statements that we make today regarding our business operations and financial performance may be considered forward looking such statements are based on current expectations and assumptions that are subject to a number of risks and uncertainties.

Jim Friedland: Actual results could differ materially. Please refer to our forms 10K and 10Q, including the risk factors. We undertake no obligation to update any forward-looking statement.

Jim Friedland: Actual results could differ materially please refer to our forms 10-K, and 10-Q, including the risk factors, we undertake no obligation to update any forward looking statements.

Jim Friedland: During this call, we will present both GAAP and non-GAAP financial measures. A reconciliation of non-GAAP to GAAP measures is included in today's earnings press release, which is distributed and available to the public to our investor relations website located at abc.xyz forward slash investor.

Jim Friedland: During this call we will present, both GAAP and non-GAAP financial measures a reconciliation of non-GAAP to GAAP measures is included in today's earnings press release, which is distributed and available to the public through our Investor Relations website located at <unk>.

Speaker Change: Our comments will be on year over year comparisons unless we stayed otherwise. And now I'll turn the call over to Sundar.

Jim Friedland: B C Dot X Y Z forward Slash investor.

Sundar: Thank you, JPM and hello everyone.

Jim Friedland: Our comments will be on year over year comparisons unless we state otherwise and now I will turn the call over to Sundar.

Sundar: Q3 was another great quarter. The momentum across the company is extraordinary as you've seen in recent product launches and as you'll hear on the call today. Our commitment to innovation as well as a long-term focus and investment in AI are paying off and driving success to the company and for our customers.

Sundar Pichai: Thank you, Jim and Hello, everyone.

Sundar Pichai: Q3 was another great quarter.

Sundar Pichai: Our momentum across the company as extraordinary as you've seen in recent product launches and as Youll hear on the call today, our commitment to innovation as well as a long term focus on and investment in AI are paying off and driving success for the company and for our customers.

Sundar: We are uniquely positioned to lead in the air of AI, because of our differentiated full stack approach to AI innovation, and we are now seeing this operated scale.

Sundar Pichai: We are uniquely positioned to lead in the era of AI because of our differentiated full stack approach to AI innovation and we are now seeing this operate at scale.

Sundar: 3 components, first, a robust AI infrastructure that includes data centers, chips and a global 5-bit network.

Sundar Pichai: <unk> competence.

Sundar: Second, World Class Research Teams, who are advancing our work with Deep Technical AI Research and who are also including the models that power our efforts.

Sundar Pichai: First a robust AI infrastructure that includes data centers chips, and a global fiber network.

Sundar Pichai: Second World Class research teams, who are advancing our work with deep technical AI research and we're also building the models that power our efforts.

Sundar: And third, a broad global reach through products and platforms that touch billions of people and customers around the world creating a virtual cycle.

Sundar Pichai: And third a broad global reach through products and platforms that touch billions of people and customers around the world, creating a virtuous cycle.

Sundar: Let me quickly touch on HFDs.

Sundar: We continue to invest in state-of-the-art infrastructure to support our AI efforts from the US to Thailand to Uruguay.

Sundar Pichai: Let me quickly touch on each of these.

Sundar: We are also making bold clean energy investments, including the world's first corporate agreement to purchase new clear energy from multiple small modular reactors, which will enable up to 500 megawatts of new 24-7 carbon free power.

We continue to invest in state of the art infrastructure to support our AI efforts from the U S to Thailand to Uruguay.

Sundar Pichai: We're also making bold clean energy investments, including the world's first corporate agreement to purchase nuclear energy from multiple small modular reactors, which will enable up to 500 megawatts of new 24, seven carbon free power.

Sundar: We are also doing important work inside our data centers to drive efficiencies while making significant hardware and model improvements.

Sundar Pichai: We're also doing important work inside our data centers to drive efficiencies, while making significant hardware and model improvements.

Sundar: For example, we shared that since we first began testing AIO views, we have lowered machine costs for query significantly.

Sundar Pichai: For example, we shed that since we first began testing aio abuse, we've lowered machine cost per query significantly in 18 months, we reduced costs by more than 90% for these queries through hardware engineering and technical breakthroughs, while doubling the size of our custom Gemini model.

Sundar: In 18 months, we reduced cost by more than 90% for these queries through hardware, engineering and technical breakthroughs, while doubling the size of our custom-gevinized model.

Sundar: And of course, we use an offer our customers, a range of AI accelerator options, including multiple classes of NVIDIA GPUs, and our own custom built GPUs. We are now on the sixth generation of GPUs known as Trilium and continue to drive efficiencies in better performance with them.

Sundar Pichai: And of course, we use and offer our customers a range of AI accelerator options, including multiple classes of Nvidia Gpus in their own custom built Gpus. We are now on the sixth generation of Gpus, known as Trillium and continue to drive efficiencies and better performance with them.

Sundar: Turning to research, our team at Google DeepMind continues to drive our leadership.

Sundar: Let me take a moment to congratulate Demiscus Others in John Jumper on winning the Nobel Prize in Chemistry for their work on Asafold.

Sundar Pichai: Turning to research our team at Google Deep mine continues to drive our leadership let.

Sundar Pichai: Let me take a moment to congratulate Dennis as others and John jumper on winning the Nobel Prize in chemistry for their work on our portfolio.

Sundar: Design Extraordinary Achievement and Underscores the incredible talent we have, and how critical our world-leading research is to the modern AI revolution and to our future progress.

Sundar Pichai: There is an extraordinary achievement and underscores the incredible talent behalf and how critical our world leading research is to the modern AI revolution onto our future progress.

Sundar: Also, congratulations to Jeff and Ken, who spent over a decade here on winning the Nobel Prize in Physics.

Sundar: Research Teams also drive our industry-leading Gemini model capabilities, including long-contexted understanding, multimodality and agent of capabilities.

Sundar Pichai: Also congratulations to Jeff and Dan who has spent over a decade here on winning the Nobel Prize in physics.

Sundar Pichai: Our research teams also drive our industry, leading Gemini model capabilities, including long contacts understanding multi modality and agent of capabilities.

Sundar: By any measure, token volume API calls, consumer usage, business adoption, usage of the Gemini models is in a period of dramatic growth.

Sundar Pichai: By any measure token volume API calls consumer usage business adoption usage of the Gemini models is in a period of dramatic growth.

Sundar: And our teams are actively working on performance improvements and new capabilities for a range of models. Stay tuned.

Sundar Pichai: Our teams are actively working on performance improvements and new capabilities for a range of models stay tune.

Sundar: When they are building out experiences where AI can see and reason about the world around you, Project Astra is a glimpse of that future. We are working to ship experiences like this as early as 2025.

Sundar Pichai: And they are building out experience is there a I can see and reason about the world around you.

Sundar: We then work to bring those advances to consumers and businesses.

Sundar Pichai: Project Astra is a glimpse of that future. We are working to ship experiences like this as early as 2025.

Sundar: Today, all seven of our products and platforms, with more than 2 billion monthly users, use Gemini models.

Sundar Pichai: We then worked to bring those advances to consumers and businesses today.

Sundar: That includes the latest product to surpass the 2 billion user milestone, Google Maps.

Sundar Pichai: Today, all seven out of our products and platforms with more than 2 billion monthly users use Gemini models.

Sundar: Beyond Google's own platforms, following strong demand, we are making Gemini even more broadly available to developers.

Sundar Pichai: That includes the latest product to surpass the 2 billion user milestone Google maps.

Sundar: Today we shared that Gemini is now available on GitHub Copilot with more to come.

Sundar Pichai: Beyond Google's own platforms following strong demand, we're making gemini even more broadly available to developers today, we shared that Gemini is now available on Github copilot with more to come.

Sundar: To support our investments across these three pillars, we are organizing the company to operate with speed and agility.

Sundar: We recently moved the Gemini app team to Google DeepMind to speed up deployment of new models and streamline post-training work.

Sundar Pichai: To support our investments across these three pillars, we are organizing the company to operate with speed and agility.

Sundar: This follows other structural changes that have unified teams in research, machine learning infrastructure and our developer teams, as well as our security efforts and our platforms and devices team.

We recently moved the Gemini App team to go very deep mine to speed up deployment of new models and streamlined post training work.

Sundar Pichai: This follows other structural changes that have unified teams in research machine learning infrastructure and our developer teams as well as our security efforts on our platforms and devices team.

Sundar: This is all helping us move faster.

Sundar: For instance, it was a small dedicated team that built Notebook LM, an incredibly popular product that has so much promise.

Sundar Pichai: This is all helping us more faster.

Sundar: We're also using AI internally to improve our coding processes.

Sundar Pichai: For instance, it was a small dedicated team that belt notebook alum and incredibly popular product that is so much promise.

Sundar: which is boosting productivity and efficiency.

Sundar: Today, more than a quarter of all new code at Google is generated by AI, then reviewed and accepted by engineers. This helps our engineers do more and move faster.

We're also using AI internally to improve our coding processes, which is boosting productivity and efficiency.

Sundar Pichai: Today more than a quarter of all new coated Google is generated by AI.

Sundar: I'm energized by our progress and the opportunities ahead.

Sundar Pichai: When reviewed and accepted by engineers. This helps our engineers do more and more faster.

Sundar: and we continue to be laser focused on building great products.

Sundar: Let me turn now to the quarterly highlights.

Sundar Pichai: I'm energized by our progress and the opportunities ahead.

Sundar: In Search, recent advancements, including AI overviews, Circle to Search, and new features in Lens are transforming the user experience, expanding what people can search for and how they search for it.

Sundar Pichai: And we continue to be laser focused on building great products.

Sundar Pichai: Turn now to the quarterly highlights.

Sundar Pichai: In search recent advancements, including AI overviews circled a surge of new features and lands are transforming the user experience expanding what people can search for and how they search for it.

Sundar: This leads to users coming to search more often for more of their information needs, driving additional search queries.

Sundar Pichai: This leads to users coming to search more often for more of their information needs driving our additional search queries.

Sundar: Just this week, AI Overview started rolling out to more than a hundred new countries and territories. It will now reach more than 1 billion users on a monthly basis.

Sundar Pichai: Just this week AI all of you started rolling out to more than 100, new countries and territories.

Sundar: We are seeing strong engagement, which is increasing overall search usage and user satisfaction.

Sundar Pichai: It will now reach more than 1 billion users on a monthly basis, we are seeing strong engagement, which is increasing overall search usage and user satisfaction.

Sundar: People are asking longer and more complex questions and exploring a wider range of websites.

Sundar: What's particularly exciting is that this growth actually increases over time as people learn that Google can answer more of their questions.

Sundar Pichai: People are asking longer and more complex questions and exploring a wide range of websites.

Sundar Pichai: What's particularly exciting is that this growth actually increases over time as people learn that Google can answer more of their questions.

Sundar: The integration of ads within AI overviews is also performing well, helping people connect with businesses as they search.

Sundar Pichai: The integration of ads with an AI all views is also performing well, helping people connect with businesses as they search.

Sundar: Circle2Search is now available on over 150 million Android devices with people using it to shop, translate text, and learn more about the world around them.

Sundar Pichai: Circle to search is now available on over 150 million Android devices.

Sundar: A third of the people who have tried Circle2Search now use it weekly, a testament to its helpfulness and potential.

Sundar Pichai: People using it to shop translate text and learn more about the world around them.

Sundar: Meanwhile, Lens is now used for over 20 billion visual searches per month. Lens is one of the fastest growing query types we see on search because of its ability to answer complex multimodal questions and help in product discovery and shopping.

Sundar Pichai: A third of the people who have tried circled a search now use it weekly.

Sundar Pichai: Estimate towards helpfulness and potential.

Sundar Pichai: Meanwhile, lenses now used for over 20 billion visual searches per month lenses, one of the fastest growing credit types, we see on search because of its ability to answer complex multimodal questions.

Sundar: For all these AI features, it's just the beginning, and you'll see a rapid pace of innovation and progress here.

Sundar Pichai: Helping product discovery and shopping.

Sundar Pichai: For all these AI features it's just the beginning and you'll see a rapid pace of innovation and progress here.

Next Google cloud.

Sundar Pichai: I'm very pleased with our growth this business has real momentum and the overall opportunity is increasing as customers embrace journey II.

Speaker Change: We generated Q3 revenues of $11.4 billion up 35% over last year with operating margins of 17%.

Speaker Change: Our technology leadership and AI portfolio are helping us attract new customers, win larger deals, and drive 30% deeper product adoption with existing customers.

Our technology leadership in AI portfolio are helping us attract new customers when larger deals and drive 30% deeper product adoption with existing customers.

Speaker Change: Customers are using our products in five different ways.

Speaker Change: First, our AI infrastructure, which we differentiate with leading performance driven by storage, compute, and software advances.

Speaker Change: Customers are using our products in five different ways.

Speaker Change: First our AI infrastructure, which we differentiate with leading performance driven by storage compute and software advances as.

Speaker Change: as well as leading reliability and a leading number of accelerators.

Speaker Change: Using a combination of our TPUs and GPUs, LG AI research reduced inference processing time for its multimodal model by more than 50% and operating costs by 72%.

Speaker Change: As well as leading reliability and the leading number of accelerators.

Speaker Change: Using a combination of our T b using Gpus LG AI research Readiest inference processing time for its multimodal model by more than 50% and operating costs by 72%.

Speaker Change: Second our enterprise AI platform vertex this used to build and customize the best Foundation models from Google and the industry.

Speaker Change: Gemini API calls have grown nearly 14x in a six-month period. When Snap was looking to power more innovative experiences within their MyAI chatbot, they chose Gemini's strong multi-modal capabilities.

Speaker Change: Gemini API calls have grown nearly 40 next in a six month period.

Speaker Change: When snap was looking to power more innovative experiences that then they're my AI chatbot, they chose Gemini strong multimodal capabilities.

Speaker Change: Since then, Snap saw over 2.5 times as much engagement with MyAI in the United States.

Speaker Change: Third, customers use our AI platform together with our data platform, BigQuery, because we analyze multi-modal data, no matter where it is stored, with ultra-low latency access to Gemini.

Speaker Change: Since then snaps all over 2.5 times as much engagement that my AI in the United States.

Speaker Change: Third customers use our AI platform together with our data platform Big quarry, because we analyzed multimodal data no matter, where it is stored with ultra low latency access to Gemini.

Speaker Change: This enables accurate, real-time decision-making for customers like Hiscox, one of the flagship syndicates in Lloyds of London, which reduced the time it took to code complex risks, from days to minutes.

Speaker Change: This enables accurate real time decision, making for customers like hiscox, one of the flagship syndicates and Lloyd's of London.

Speaker Change: These types of customer outcomes, which combine AI with data science, have led to 80% growth in BigQuery ML operations over a six-month period.

Speaker Change: Which reduce the time it took to coat complex risks from days to minutes.

Speaker Change: These types of customer outcomes, which combine AI or data science have led to 80% growth in bakery MLR operations.

Speaker Change: Fourth, our AI-powered cybersecurity solutions, Google Threat Intelligence, and security operations are helping customers like BBVA and Deloitte prevent, detect, and respond to cybersecurity threats much faster.

Speaker Change: Over a six month period.

Speaker Change: Fourth our AI powered cyber security solutions, Google threat intelligence and security operations are helping customers like BBVA and Deloitte prevent detect and respond to cyber security threats.

Speaker Change: We have seen customer adoption of our Mandiant Power Threat Detection increase 4x over the last six quarters.

Speaker Change: Much faster.

Speaker Change: Fifth, in Q3, we broadened our applications portfolio with the introduction of our new customer engagement suite.

Speaker Change: We have seen customer adoption of our Mandan power truck production increased forex over the last six quarters.

Speaker Change: First in Q3, we broadened our applications portfolio with the introduction of our new customer engagement suite.

Speaker Change: It's designed to improve the customer experience online and in mobile apps, as well as in call centers, retail stores, and more. A great example is Volkswagen of America, who is using this technology to power its new MyVW virtual assistant.

Speaker Change: It's designed to improve the customer experience online and in mobile apps as well as in call centers retail stores and more.

Speaker Change: Great example is folks back in North America, who is using this technology to power its new my VW virtual assistant.

Speaker Change: In addition, the employee agents we delivered through Gemini for Google Workspace are getting superb reviews.

Speaker Change: 75% of daily users say it improves the quality of their work.

Speaker Change: In addition, the employee agents, we delivered through Gemini for Google Workspace are getting superb reviews.

Speaker Change: Moving now to YouTube. For the first time ever, YouTube's combined ad and subscription revenue over the past four quarters has surpassed $50 billion.

75% of daily users say it improves the quality of their work.

Speaker Change: Yeah.

Speaker Change: Moving now to Youtube for the first time ever Youtube combined AD and subscription revenue over the past four quarters has surpassed $50 billion.

Weather Youtube TV, NFL Sunday ticket and Youtube music premium are driving subscription growth for the platform and.

And we're leaning into the living room experience with multi view and a new option for creators to organize content into episodes and seasons.

Speaker Change: At Maydawn YouTube, we announced that Google DeepMind's most capable model for video generation, VEO, is coming to YouTube Shorts to help creators later this year.

Speaker Change: Similar to traditional TV.

Speaker Change: Made on Youtube, we announced that Google deep mines, most capable model for video generation view is coming to Youtube charts to help creators later this year.

Speaker Change: Next, Platforms and Devices.

Speaker Change: Gemini's deep integration is improving Android. For example, Gemini Live lets you have free-flowing conversations with Gemini. People love it. It's available on Android, including Samsung Galaxy devices.

Speaker Change: Next platforms and devices.

Speaker Change: Gemini has deep integration is improving Android.

Speaker Change: For example, Gemini life, let's you have free flowing conversations with Gemini people love it.

Speaker Change: We continue to work closely with them to deliver innovations across their newest devices, with much more to come.

Speaker Change: Available on Android, including Samsung Galaxy devices.

Speaker Change: At Made by Google, we unveiled our latest Pixel 9 series of devices featuring advanced AI models, including Gemini Nano. We have seen strong demand for these devices, and they have already received multiple awards.

We continue to work closely with them to deliver innovations across their newest devices.

Speaker Change: But much more to come.

Speaker Change: It made by Google, We unveiled our latest pixel nine series of devices.

Speaker Change: <unk> advanced AI models, including Gemini nano, we've seen strong demand for these devices.

Speaker Change: Turning to other bets, I want to highlight Waymo, the biggest part of our portfolio.

Speaker Change: And they have already received multiple awards.

Speaker Change: Waymo is now a clear technical leader within the autonomous vehicle industry and creating a growing commercial opportunity.

Speaker Change: Turning to other bets I want to highlight Raimo the biggest part of our portfolio.

Speaker Change: <unk> is now a clear technical leader within the autonomous vehicle industry, and creating a growing commercial opportunity.

Over the years, they've always been infusing cutting edge AI into its work now each week way most driving more than 1 million fully autonomous Mileson serves over 150000 paid rights.

Speaker Change: The first time any AV company has reached this kind of mainstream use.

Speaker Change: Through its expanded network and operations partnership with Uber in Austin and Atlanta, plus a new multi-year partnership with Hyundai, Waymo will bring fully autonomous driving to more people and places.

Speaker Change: The first time any company has reached this kind of mainstream use.

Speaker Change: Through its expanded network and operations partnership.

Speaker Change: With over in Austin, and Atlanta, plus a new multi year partnership with Hyundai BMO will bring fully autonomous driving to more people in places.

Speaker Change: By developing a universal driver, Waymo has multiple paths to market.

Speaker Change: And with its 6th generation system, Waymo significantly reduced unit costs without compromising safety.

Speaker Change: By developing a universal driver they mall us multiple paths to market.

Speaker Change: Before I close, I'm delighted to welcome our new CFO, Anant. We are thrilled to have her on board and you will hear from her shortly.

Speaker Change: And with its sixth generation system, they most significantly reduced unit costs without compromising safety.

Speaker Change: For a close I'm delighted to welcome our new CFO or not we are thrilled to have her onboard and youll hear from her shortly and as always I want to express my gratitude to our employees worldwide. Your dedication and hard work have made this another exceptional quarter for alphabet.

Speaker Change: And as always, I want to express my gratitude to our employees worldwide. Your dedication and hard work have made this another exceptional quarter for Alphabet. Now over to you, Philipp.

Philipp Schindler: Thanks Sundar and hello everyone. I'll start with performance for the quarter and then describe the progress we're seeing across ads, YouTube, and partnerships, highlighting the impact AI is already having on our business. Google services delivered revenues of 76.5 billion dollars for the quarter, up 13% year-on-year.

Speaker Change: Now over to you for them.

Speaker Change: Thanks, Sundar and Hello, everyone I'll start with performance for the quarter and then describe the progress we're seeing across adds Youtube and partnerships highlighting the impact of AI is already having on our business. Google services delivered revenues of $76 5 billion for the quarter up 13% year on year searched.

Philipp Schindler: Search and other revenues grew 12% year-on-year, led by growth in the financial services vertical due to strength in insurance, followed by retail.

Speaker Change: Search and other revenues grew 12% year on year led by growth in the financial services vertical due to strength in insurance followed by retail.

Philipp Schindler: YouTube ads revenues grew 12% year-on-year, driven by brand, closely followed by direct response.

Philipp Schindler: Network revenues were down 2% year-on-year. In subscriptions, platforms, and devices, year-on-year revenues were up 28%, driven by growth in subscriptions as well as the launch of our Made by Google devices in the third quarter.

Speaker Change: Youtube ads revenues grew 12% year on year, driven by brand closely followed by direct response.

Speaker Change: Revenues were down 2% year on year, and subscriptions platforms and devices Youre on your revenues were up 28% driven by growth in subscriptions as well as the launch of our made by Google devices in the third quarter.

Speaker Change: Before I double-click into Ads, YouTube, and Partnerships, a few comments on search.

Speaker Change: Whether using their voice to find answers on the go or opening their camera to explore the world around them, people are expanding how they ask questions in search, as well as the type of questions they ask. New behaviors create new opportunities to help us connect businesses and consumers via amazing commercial experiences.

Before a double click into adjuvant partnerships a few comments on search.

Speaker Change: Where they're using their voice to find answers on the go or opening their camera to explore the world around them people are expanding how they ask questions and search as well as the type of questions. They ask new behaviors create new opportunities to help us connect businesses and consumers to be amazing commercial experiences.

Speaker Change: As JNAI expands what's possible, we continue to see a significant opportunity in search. Let me take a minute to explain why.

Speaker Change: AI really supercharges search. Our new AI-powered features make searches more helpful, and we continue to see great feedback, particularly from younger users. For example, we're circled to search where we see higher engagement from users aged 18 to 24.

Speaker Change: As Jenny I expands what's possible, we continue to see a significant opportunity in search let me take a minute to explain why.

Speaker Change: Yeah really supercharge research.

Speaker Change: Hey, I apart features make searches more helpful and we continue to see great feedback, particularly from younger users for example, with circle to search where we see higher engagement from users aged 18 to 24.

Speaker Change: AI is expanding our ability to understand intent and connect it to our advertisers. This allows us to connect highly relevant users with the most helpful ad and deliver business impact to our customers.

AI is expanding our ability to understand intent and connected to our advertisers. This allows us to connect highly relevant use us with the most helpful AD and deliver a business impact to our customers.

Speaker Change: Let me share two new ad experiences we have rolled out alongside our popular AI-powered features in search. First, as you heard from Sundar, every month Lens is used for almost 20 billion visual searches, with one in four of these searches having commercial intent.

Speaker Change: Let me share two new AD experiences, we have rolled out alongside our popular AI powered features of search.

Speaker Change: First as you heard from Sundar every month lenses used for almost 20 billion visual searches with one in four of these searches having commercial intent.

Speaker Change: In early October, we announced product search on Google Lens, and in testing this feature, we found that shoppers are more likely to engage with content in this new format. We're also seeing that people are turning to Lens more often to run complex, multimodal queries, voicing a question or inputting text in addition to a visual.

Speaker Change: In early October we announced product search on Google lunch and are testing. This feature we found that shoppers are more likely to engage with content in this new format.

Speaker Change: We're also seeing that people are turning to lends more often to run complex multimodal coreys voicing a question or in putting text. In addition to a visual.

Speaker Change: Given these new user behaviors, earlier this month, we announced the rollout of shopping ads above and alongside relevant lens visual search results to help better connect consumers and businesses.

Speaker Change: Given these new user behaviors earlier this month, we announced the rollout of shopping ads above and alongside relevant lens visual search results to help better connect consumers and businesses.

Speaker Change: Second, AI overviews, where we have now started showing search and shopping ads within the overview for mobile users in the U.S.

Speaker Change: As you remember, we've already been running ads above and below AI overviews. We're now seeing that people find ads directly within AI overviews helpful because they can quickly connect with relevant businesses, products, and services to take the next step at the exact moment they need.

Speaker Change: Second.

Speaker Change: Overviews, where we have now started showing search and shopping ads within the overview for mobile users in the U S.

Speaker Change: As you remember, we've already been running ads above and below AA overviews, we're now seeing that people find ads directly within AI overviews helpful. Because they can quickly connect with relevant businesses products and services to take the next step at the exact moment they need.

Speaker Change: As I've said before, we believe AI will revolutionize every part of the marketing value chain. Let's start with creative. Advertisers now use our Gemini-powered tools to build and test a larger variety of relevant creatives at scale.

Speaker Change: As I've said before we believe AI will revolutionize every part of the marketing value chain.

Speaker Change: Audi used our AI tools to generate multiple video, image, and text assets in different lengths and orientations out of existing long-form videos.

Speaker Change: Start with creative.

Speaker Change: Advertisers know use our Gemini powered tools to build and test the larger variety of relevant creative at scale.

Speaker Change: <unk> used our AI tools to generate multiple video image and text assets in different links and orientations out of existing long form videos.

Speaker Change: It then fed the newly generated credits into Dimension to drive reach, traffic, and booking to their driving experience. The campaign increased website visits by 80% and increased clicks by 2.7 times, delivering a lift in their sales.

Speaker Change: He then hit the newly generated created into dimension to drive reach traffic and booking to their driving experience. The campaign increased website visits by 80% and increased clicks by two seven times delivering a lift in their sales.

Speaker Change: Last week, we updated image generation in Google Ads with our most advanced text-to-image model, Imagine3, which we tuned using ads performance data from multiple industries to help customers produce high-quality imagery for their campaigns.

Last week, we updated image generation at Google and Us with our most advanced texture image model imagine three which retuned using ads performance data from multiple industries to help customers produce high quality imagery for their campaigns.

Speaker Change: Advertisers can now create even higher performing assets for PMAX, demand gen, app, and display campaigns.

Speaker Change: Turning to media buying. AI-powered campaigns help advertisers get faster feedback on what creatives work where and redirect the media buying.

Speaker Change: <unk> can now create even higher performing assets for Pemex demand Gen App and display campaigns.

Speaker Change: Turning to media buying AI powered campaigns help advertisers get faster feedback on what greatest work wear and redirect the media buying.

Speaker Change: Using DemandGen, DoorDash tested a mix of image and video assets to drive more impact across Google and YouTube's visually immersive surfaces. They saw a 15 times higher conversion rate at a 50% more efficient cost per action when compared to video action campaigns alone.

Using demand Gen door dash tests at a mix of image and video assets to drive more impact across Google and Youtube sufficiently immersive surfaces.

Speaker Change: Last, and most importantly, measurement. This quarter, we extended availability of our open-source marketing mixed-model Meridian to more customers, helping to scale measurement of cross-channel budgets to drive better business outcomes.

Speaker Change: So 15 times higher conversion rate at a 50% more efficient cost per action when compare to video action campaigns alone.

Speaker Change: Last and most importantly measurement this quarter, we extended the availability of our open source marketing mix model meridian to more customers, helping to skilled measurement of cross channel budgets to drive better business outcomes.

Speaker Change: On YouTube, we remain focused on building a platform that enables creators to thrive and unlocking a whole new world of creativity with AI.

On Youtube, we remain focused on building a platform that enables creators to thrive and unlocking a whole new world of creativity with AI.

Speaker Change: Creators are at the heart of the YouTube ecosystem, and the content they are making is driving robust growth and watch time across the platform.

Speaker Change: We're also using AI to greatly improve recommendations on YouTube. Driven by Gemini, our large-language models have a deeper understanding of video content and viewers' preferences. As a result, they can recommend more relevant, fresher, and personalized content to the viewer.

Speaker Change: Creators are at the heart of the Youtube ecosystem and the content. They are making is driving robust growth in watch time across the platform.

Speaker Change: We're also using AI to greatly improve recommendations on Youtube driven by Jim and I are large language models have a deeper understanding of video content and viewers' preferences. As a result, they can recommend more relevant fresher and personalized content to the viewer.

Speaker Change: ShortForm Creation continues to thrive on YouTube. Shorts monetization improved again this quarter and we continue to significantly close the gap with in-stream video, particularly in the US and other more highly monetizing markets.

Speaker Change: Short form creation continues to thrive on Youtube.

Speaker Change: Shorts monetization improved again this quarter and we continued to significantly close the gap with the industry and video, particularly in the U S and other more highly monetizing markets.

Speaker Change: Of all the channels uploading to YouTube each month, 70% are uploading shorts. And we recently announced a top requested feature, the ability to upload shorts up to 3 minutes long.

Speaker Change: Of all the channels uploading to Youtube each month, 70% are uploading Schwartz.

Speaker Change: Also, advertisers can now book first position on shorts blocks in close to 40 markets.

Speaker Change: And we recently announced the top requested feature the ability to upload shorts up to three minutes long.

Speaker Change: We're unlocking more opportunities in the living room. Our momentum here continues as we maintain our status as the number one streamer in the U.S., according to Nielsen.

Speaker Change: So advertisers can now book first position on shorts blocks and close to 40 markets.

Speaker Change: We're unlocking more opportunities in the living room.

Speaker Change: This is driven by the strength of our creators, such as Michelle Carr and Red and Link, who are increasingly crafting experiences designed specifically for the big screen. And it's paying off. The number of creators making the majority of their YouTube revenue on TV screens is up more than 30% year on year.

Speaker Change: Our momentum here continues as we maintain our status as the number one streamer and the U S. According to Nielsen.

This is driven by the strength of our creators such as Michelle car and Red and link where increasingly crofting experiences designed specifically for the big screen.

Speaker Change: YouTube is becoming a premier destination for sports watching. People come for the game and stay for the commentary and around the game content from creators like Evelyn Gonzalez, Adam W. and Brad Coleman.

Speaker Change: And it's paying off a number of graders, making the majority of the Youtube revenue on television screens is up more than 30% year on year.

Speaker Change: Youtube is becoming a premier destination for sports watching.

Speaker Change: People come for the game and stay for the commentary and around the game content from creators like Evelyn Gonzalez, Adam W and Brad Coleman.

Speaker Change: During the Olympics, content from Paris 2024 had over 12 billion views on YouTube. More than 850 million unique viewers watched over 40 billion minutes of content with 35% on their TV screens.

Speaker Change: During the Olympics content from Paris, 2024 had over 12 billion views on Youtube.

Speaker Change: More than 850 million unique viewers watched over 40 billion minutes of content with 35% on their TV screens.

Speaker Change: And recently, we kicked off our second season of NFL Sunday Ticket on YouTube TV, which continues to receive a positive reception from advertisers, our partners at the NFL, and fans. We have continued to invest in our product experience, with improvements to multi-view and deeper integrations for fantasy football fans.

Speaker Change: And recently, we kicked off our second season of NFL Sunday ticket on Youtube TV, which continues to receive a positive reception from advertisers our partners at the NFL and hence we've continued to invest in our product experience with improvements to multi view and deeper integrations for fantasy football fans.

Speaker Change: Following up on my remarks from last quarter about Brandcast, we had a strong upfront performance with commitments up about 20% year-on-year.

Speaker Change: Following up on my remarks from last quarter brought brand cast we had a strong upfront performance with commitments up about 20% year on year.

Speaker Change: As always, let me wrap with the strong momentum we're seeing in partnerships.

Speaker Change: More and more of our partners are recognizing the breadth of our technologies and building solutions that leverage the very best of Google. For example, a recently announced strategic partnership with Vodafone Group spans Google Cloud, AI, Android, Ads, and digital services.

Speaker Change: As always let me wrap with the strong momentum we're seeing in partnerships more and more of our partners are recognizing the breadth of our technologies and building solutions that leverage the very best of goodwill.

Speaker Change: For example, our recently non strategic partnership with Vodafone Group spans Google Cloud AI, Android ads and digital services.

Speaker Change: This multi-billion dollar partnership will bring these technologies to more than 330 million customers across Europe and Africa.

Speaker Change: We're collaborating on more than 30 initiatives across seven areas, including generative AI for consumers, a best-in-class TV platform, hardware, and cybersecurity.

Speaker Change: This multibillion dollar partnership will bring these technologies to more than 330 million customers across Europe and Africa. We're.

Speaker Change: <unk> on more than 30 initiatives across several areas, including generated from consumers and best in class TV platform hardware and cyber security.

Speaker Change: With that, a heartfelt thank you to Googlers everywhere for their extraordinary commitment, and to our customers and partners for their continued collaboration and trust.

Speaker Change: With that heartfelt. Thank you to google's everywhere for their extraordinary commitment and to our customers and partners for their continued collaboration and trust.

Speaker Change: Anant, welcome to the team. It's great to have you with us. Over to you.

Anant: Thank you, Philipp, and thanks, Sundar, for the words of welcome.

Speaker Change: Welcome to the team it's great to have you with us over to you.

Speaker Change: My comments will focus on year-over-year comparisons for the third quarter, unless I state otherwise.

Speaker Change: Thank you Philip and thank Sundar for the words of welcome Mike.

Anant: I will start with the results at the alphabet level and will then cover our segment results. I'll end with high-level commentary on investment at the alphabet level.

Speaker Change: My comments will focus on year over year comparisons for the third quarter unless I state otherwise.

Speaker Change: I will start with the results at the alphabet level and will then cover our segment results.

Anant: We had another strong quarter in Q3 with robust momentum across the business.

Speaker Change: I'll end with high level commentary on investment at the alphabet level.

Anant: Consolidated revenue increased by 15% or 16% in constant currency. Search remained the largest contributor to revenue growth, followed by robust 35% growth in cloud. Total cost of revenue was $36.5 billion, up 10%.

Speaker Change: We had another strong quarter in Q3 with robust momentum across the business Consol.

Speaker Change: Consolidated revenue increased by 15% or 16% in constant currency search remained the largest contributor to revenue growth followed by robust 35% growth in cloud.

Anant: Tech was $13.7 billion, up 9%. We continue to see a revenue mix shift, with Google Search growing at double-digit levels, while network revenue, which have a much higher tech rate, declined.

Speaker Change: Total cost of revenue was $36 $5 billion up 10%.

Speaker Change: TAC was $13 $7 billion up 9%, we continue to see a revenue mix shift with Google search grew in a double digit levels, while network revenue, which has a much higher attack rate declined.

Anant: Other costs of revenue was $22.8 billion, up 11%.

Anant: with the increase primarily driven by content acquisition costs primarily for YouTube.

Speaker Change: Other cost of revenue was $22 $8 billion up 11% with the increase primarily driven by content acquisition costs, primarily for Youtube and increase in depreciation associated with higher level of investment in our technical infrastructure and higher hardware cost associate with the pull forward of our made by Google lunches.

Anant: an increase in depreciation associated with a higher level of investment in our technical infrastructure and higher hardware costs associated with the pull-forward of our Made by Google launches from the fourth to the third quarter.

Anant: Total operating expenses increased 5% to $23.3 billion.

Speaker Change: From the fourth to the third quarter.

Anant: The increase was primarily driven by facilities-related charges, as results of action were taken to further optimize their office space footprint globally, followed by depreciation, partially offset by year-on-year decline in charges for legal and other matters.

Total operating expenses increased 5% to $23 $3 billion.

Speaker Change: The increase was primarily driven by facilities related charges as a result of the actions were taken to further optimize their office space footprint globally.

Anant: R&D investments increased by 11%, primarily driven by increases in compensation and depreciation expenses.

Speaker Change: By depreciation partially offset by year on year decline in charges for legal and other matters.

Anant: Sales and marketing expenses increased 5%, primarily reflecting investment in advertising and promotional efforts related to the Made by Google launches as well as for AI and Gemini.

Speaker Change: R&D investments increased by 11%, primarily driven by increases in compensation and depreciation expenses.

Speaker Change: Sales and marketing expenses increased 5%, primarily reflecting investment in advertising and promotional efforts related to the made by Google launches as well as for AI in Gemini.

Anant: G&A expenses declined by 10%, primarily due to lower charges for legal and other matters.

Anant: Operating Income increased 34% to $28.5 billion and Operating Margin increased to 32%.

Speaker Change: G&A expenses declined by 10%, primarily due to lower charges for legal and other matters.

Speaker Change: Operating income increased three 4% to $28 $5 billion and operating margin increased to 32%.

Anant: Net income increased 34% to $26.3 billion and earnings per share increased 37% to $2.12.

Speaker Change: Net income increased three 4% to $26 3 billion and earnings per share increased 37% to $2.12.

Speaker Change: We're pleased with the progress we're making in re-engineering our cost structure, which is reflected in our operating margin expansion this quarter, while also continuing to invest in the business to bring innovation to consumers, creators, and enterprises.

We're pleased with the progress we're making in reengineering, our cost structure, which is reflected in our operating margin expansion this quarter.

Speaker Change: We delivered free cash flow of $17.6 billion for the third quarter and $55.8 billion for the trailing 12 months.

Speaker Change: We're also continuing to invest in the business to bring innovation to consumers creators and enterprises.

Speaker Change: We delivered free cash flow of $17 $6 billion for the third quarter and $55 $8 billion for the trailing 12 months.

Speaker Change: Your and your free cash flow was negatively impacted by the following items.

Speaker Change: Year on year free cash flow was negatively impacted by the following items.

Speaker Change: In 2023, we deferred cash tax payments from the second and third quarter to the fourth quarter.

Speaker Change: And in Q3, 'twenty 'twenty four we made a $3 billion cash payment related to the 2017 E C shopping fine.

Speaker Change: We ended the quarter with $93 billion in cash and marketable securities.

Speaker Change: Now turning to segment results.

Speaker Change: We ended the quarter with 93 billion in cash and marketable securities.

Speaker Change: Google services revenue increased 13% to $76.5 billion.

Speaker Change: Now turning to segment results.

Speaker Change: Google Search and other advertising revenue increased by 12% to $49.4 billion.

Speaker Change: Services revenue increased 13% to $76 $5 billion.

Speaker Change: The robust performance of search was broad-based across verticals led by the financial services vertical due to strength in insurance followed by retail.

Speaker Change: Google search and other advertising revenue increased by 12% to $49 $4 billion.

Speaker Change: The robust performance of search was broad based across verticals led by the financial services vertical due to strength in insurance followed by retail.

Speaker Change: YouTube advertising revenue increased 12% to $8.9 billion, driven by brand followed by direct response advertising.

Speaker Change: Youtube advertising revenue increased 12% to $8 $9 billion driven by brand followed by direct response advertising.

Speaker Change: As Philipp mentioned, we're seeing strong momentum in YouTube, including robust growth in watch time across the platform, and are excited about the new features and products we're bringing to creators.

Speaker Change: As Phil mentioned, we're seeing strong momentum in Youtube, including robust growth in watch time across the platform and are excited about the new features and products, we're bringing to creators.

Speaker Change: Network advertising revenue of $7.5 billion, we're down 2%.

Speaker Change: In the third quarter, the year-on-year growth in all our advertising revenue lines was impacted by the increase in strength in advertising revenue in Q3 of last year, in part from APAC-based retailers.

Speaker Change: Network advertising revenue of $7 $5 billion were down 2%.

Speaker Change: In the third quarter the year on year growth in our advertising revenue lines was impacted by the increase in strength in advertising revenue in Q3 of last year in part from APAC based retailers.

Speaker Change: Subscription platforms and devices revenue increased 28% to $10.7 billion, reflecting growth in subscription revenues as well as the launch of our Made by Google devices in the third quarter.

Speaker Change: Subscription platforms and devices revenue increased 28% to $10 $7 billion, reflecting growth in subscription revenues as well as the launch of our made by Google devices in the third quarter.

Speaker Change: We continue to have significant growth in our subscription products driven primarily by YouTube TV and YouTube Music Premium, as well as Google One, primarily due to increases in the number of paid subscribers.

Speaker Change: We continue to have significant growth in our subscription products, driven primarily by Youtube TV and Youtube music premium as well as Google one primarily due to increases in the number of paid subscribers.

Speaker Change: With regards to platforms, we're pleased with the performance in play, primarily driven by an increase in buyers.

Speaker Change: Google's service operating income increased by 29% to $30.9 billion, and operating margin was 40%.

Speaker Change: With regards to the platforms. We're pleased with the performance in play primarily driven by an increase in buyers Google.

Speaker Change: Google Service operating income increased by 29% to $3 $9 billion and operating margin was 40%.

Speaker Change: Turning to the Google Cloud segment, which continued to deliver very strong results this quarter.

Speaker Change: Revenue increased by 35% to $11.4 billion in the third quarter, reflecting accelerated growth in GCP across AI infrastructure, generative AI solutions, and core GCP products.

Speaker Change: Turning to the Google Cloud segment, which continued to deliver very strong results this quarter.

Speaker Change: Revenue increased by 35% to $11.4 billion in the third quarter.

Speaker Change: <unk> accelerated growth and G C P across their infrastructure.

Speaker Change: Once again, GCP grew at a rate that was higher than cloud overall. We also saw strong Google Workspace growth, primarily driven by increases in average revenue per seat.

Speaker Change: Generally with AI solutions and core G C P products.

Speaker Change: Once again G C P credit rate that was higher than cloud overall.

Speaker Change: As you just heard from Sundar, the robust innovation and expanded AI offerings within our cloud business are allowing existing and new customers to realize measurable business benefits including reduced cost, greater customer engagement, faster response time, and better revenue conversion.

Speaker Change: We also saw strong Google workspace growth, primarily driven by increases in average revenue per seat.

Speaker Change: If you just heard from Sundar, the robust innovation expanded AI offerings within our cloud business are allowed in existing and new customers realize measurable business benefits, including reduced cost greater customer engagement faster response time and better revenue conversion.

Speaker Change: Google Cloud Operating Income increased to $1.9 billion, and Operating Margin increased to 17%.

Speaker Change: The Operating Margin expansion was driven by strong revenue performance across cloud AI products, core GCP, and workspace, as well as ongoing efficiency initiatives.

Speaker Change: Google Cloud operating income increased to $1 $9 billion and operating margin increased to 17%.

Speaker Change: The operating margin expansion was driven by strong revenue performance across cloud AI products core DCP and workspace as well as ongoing efficiency initiatives.

Speaker Change: As to our other bets, for the third quarter, revenue were $388 million, and operating loss was $1.1 billion.

Speaker Change: As for other bets for the third quarter revenue were $388 million in operating loss was $1.1 billion.

Speaker Change: I'll highlight just a couple of accomplishments in the quarter for Waymo and Wing.

Speaker Change: We're excited about the progress we're seeing in Waymo, as Sundar mentioned, and the increase in the number of paid rides. We're planning to continue to expand our geographic coverage and reach more customers in existing markets and new markets.

Speaker Change: I'll highlight just a couple of accomplishments in the quarter for Raimo and Wink.

Speaker Change: We're excited about the progress we're seeing in Waynesville is Sundar mentioned and the increase in the number of paid rights.

Speaker Change: Wing, our drone delivery company, recently passed the one-year anniversary of scaling its partnership with Walmart in the Dallas-Fort Worth area, now operating in 11 stores and serving 26 different cities and towns.

Speaker Change: We're planning to continue to expand our geographic coverage and reach more customers in existing markets and new markets.

Speaker Change: When our drone delivery company recently passed the one year anniversary of scaling its partnership with Walmart and Dallas Fort Worth area now operating in 11 stores and serving 26 different cities and towns.

Speaker Change: Turning to alphabet level activities, the largest component of this line is our investment in AI research and development activities, which support all of alphabet.

Speaker Change: Turning to alphabet level activities. The largest component of this line is our investment in AI research and development activities, which support all of alphabet.

Speaker Change: There were two notable items that impacted the operating loss in alphabet-level activities.

Speaker Change: First...

Speaker Change: A $607 million dollar charge related to decisions we've made to further optimize our physical footprint and office space globally, and second, our ongoing investments in AI R&D include the full core effect of the organizational changes we've made in May to move some additional AI teams from Google Services to Google DeepMind.

Speaker Change: There were two notable items that impacted the operating loss in alphabet level activities first.

Speaker Change: $607 million charge related to decisions, we made to further optimize our physical footprint and office space globally and second our ongoing investments in R&D in kind of full quarter effect of the organizational changes. We've made in may to move some additional AI teams from Google services to Google Deep mines.

Speaker Change: With respect to CapEx, our reported CapEx in the third quarter was $13 billion, reflecting investment in our technical infrastructure, with the largest component being investment in servers, followed by data centers and networking equipment.

Speaker Change: With respect to Capex, our reported Capex in the third quarter was $13 billion.

Speaker Change: Reflecting investment in our technical infrastructure with the largest component being investment in servers, followed by data centers and networking equipment.

Speaker Change: Looking ahead, we expect quarterly CapEx in the fourth quarter to be at similar levels to Q3. Keep it in mind that the timing of cash payments can cause variability in quarterly reported CapEx.

Speaker Change: Looking ahead, we expect quarterly Capex in the fourth quarter to be at similar levels to Q3, keeping in mind that the timing of cash payments can cause variability in quarterly report the capex.

Speaker Change: Our expansion of data center capacity is expected to bring economic benefits to countries and communities where we are investing. In the third quarter alone we made announcements of over seven billion dollars in planned data center investments with nearly six billion dollars of that in the U.S.

Speaker Change: Our expansion of data center capacity is expected to bring economic benefits the countries and communities, where we are investing in the third quarter alone. We made announcements of over $7 billion in planned data center investments with nearly $6 billion of that in the U S.

Speaker Change: In Q3, we also returned value to shareholders in the form of $15.3 billion in share repurchases and $2.5 billion in dividend payments.

Speaker Change: In Q3, we also returned value to shareholders in the form of $15 3 billion in share repurchases and $2 5 billion in dividend payments.

Speaker Change: Overall, we return a total of nearly $70 billion over the trailing 12 months to shareholders.

Speaker Change: As we look forward, we are working to balance our investments in AI and other growth areas with the cost discipline needed to fund those activities.

Speaker Change: All we returned a total of nearly $70 billion over the trailing 12 months the shareholders.

Speaker Change: As we look forward, we are working to balance our investments in AI and other growth areas with the cost discipline needed to fund those activities.

Speaker Change: As we think about the remainder of 2024, there are a couple of dynamics to consider.

Speaker Change: In terms of revenue, year-on-year growth in advertising revenue will continue to be impacted by the increase in strength in advertising revenue in the second half of 2023, in part from APAC-based retailers.

Speaker Change: As we think about the remainder of 'twenty 'twenty four there are a couple of dynamics to consider.

Speaker Change: In terms of revenue year on year growth in advertising revenue will continue to be impacted by the increasing strength in advertising revenue in the second half of 2023 in part from APAC based retailers.

Speaker Change: And, there will be a headwind to year-over-year growth in subscription platforms and devices revenue in the fourth quarter due to the pull-forward of our Made by Google launches into the third quarter this year.

Speaker Change: And there will be a headwind to year over year growth in subscription platforms and devices revenue in the fourth quarter due to the pull forward of our made by Google launches into the third quarter. This year.

Speaker Change: In terms of expenses, we'll continue to see increases in depreciation and expenses associated with higher levels of investment in our technical infrastructure, partially offset by a slight benefit from the cost revenue associated with our devices due to the pull-forward of hardware launches into Q3.

Speaker Change: In terms of expenses will continue to see increases in depreciation and expenses associated with higher level of investment in our technical infrastructure.

Speaker Change: Partially offset by slight benefit from the cost revenue associated with our devices due to the pull forward of hardware launches into Q3.

Speaker Change: Now, before going into Q&A, as the new CFO, I would like to share a few thoughts on how I'm approaching and thinking through growth, cost structure, and capital allocation. And expect to hear more from me on these topics in the coming quarters.

Speaker Change: Now before going into Q&A as the new CFO I would like to share a few thoughts and hotline approaching and thinking through growth cost structure and capital allocation in.

Speaker Change: As I look at the business, I see opportunities for further growth propelled by AI and the underlying momentum across the business.

Speaker Change: And expect to hear more from me on these topics in the coming quarters.

Speaker Change: You heard about some of these on the call today.

Speaker Change: As I look at the business I see opportunities for further growth propelled by AI and the underlying momentum across the business.

Speaker Change: I also believe that we are well positioned to deliver meaningful innovation, which will translate to revenue, given our strength in the core pillars that are required to succeed in AI at scale.

Speaker Change: You heard about some of these on the call today.

Speaker Change: I also believe that we are well positioned to deliver meaningful innovation, which will translate to revenue given our strength in the core pillars that are required to succeed in AI at scale.

Speaker Change: Realizing those opportunities and great innovation in AI requires global reach, which we have through our products and platforms, as well as continued meaningful capital investment.

Speaker Change: We always think there's opportunities and great innovation and AI requires global reach which we have through our product set platforms as well as continued meaningful capital investment.

Speaker Change: And while we have a strong balance sheet to be able to support these investments, we will be looking for efficiencies so that we can fund innovation in priority areas.

Speaker Change: And while we have a strong balance sheet to be able to support these investments we will be looking for efficiencies. So that we can fund innovation priority areas.

Speaker Change: Sundar Rooth and our leadership team started important work to re-engineer our cost structure, including efforts such as optimizing our headcount growth, our physical footprint, improving the efficiencies of our technical infrastructure, and streamlining operations across the company through the use of AI.

Speaker Change: Sundar Ruth and her leadership team started important work to reengineer, our cost structure, including efforts such as optimizing our head count growth, our physical footprint, improving the efficiencies of our technical infrastructure and streamline operations across the company through the use of AI.

Speaker Change: I plan to build on these efforts, but also evaluate where we might be able to accelerate work and where we might need to pivot to free up capital for more attractive opportunities.

I plan to build on these efforts, but also evaluate where we might be able to accelerate work anywhere we might need to pivot to free up capital for more attractive opportunities.

Speaker Change: Thank you. Sundar, Philipp, and I will now take your questions.

Speaker Change: Thank you. As a reminder, to ask a question, you will need to press star 1 on your telephone. To prevent any background noise, we ask that you please mute your line once your question has been stated. And our first question comes from Brian Nowak-Wipp, Morgan Stanley. Your line is now open.

Thank you Sundar, Philip and I will now take your questions.

Thank you as a reminder, task question you will need to press star one on your telephone to prevent any background noise. We ask that you. Please mute your line. Once your question it's been stated.

Brian Nowak-Wipp: Thanks for taking my questions. I have a two-parter, Sundar. The first one, over the course of the last year-plus, you sort of showcased a lot of different types of new Gen-AI-enabled search products to sort of reimagine the search experience.

Speaker Change: And our first question comes from Brian Nowak with Morgan Stanley. Your line is now open.

Brian Nowak: Thanks for taking my questions I have a two parter sundar the first one over the over the course of the last year plus you you sort of showcase a lot of different types of new Jedi enable genocea enabled search products through a re imagine the search experience.

Brian Nowak-Wipp: Can you help us hone in on one or two of these products that you're most excited about that you think over the next two to three years could really lead to more durable multi-year search growth once they scale?

Brian Nowak: Can you help us hone in on one or two of these products that you're most excited about that you think over the next two to three years can really lead to more durable multiyear search growth once they scale and then the second one just as we're sort of thinking through constraints to how quickly they come out.

Brian Nowak-Wipp: And then the second one, just as we're sort of thinking through constraints to how quickly they come out, what are sort of the key constraints that you see to really reimagining search and scaling it out across 2 to 3 billion people? Thanks.

Brian Nowak: What are sort of the key constraints that you see to really re imagining search and scaling it out across two to 3 billion people.

Speaker Change: Thanks, Brian. Great question. Look, it's been an extraordinary year of innovation, you know, I mentioned in my remarks about

Brian Nowak: Yeah.

Speaker Change: Thanks, Brian Great question look I know, it's been an extraordinary year of innovation.

Speaker Change: I mentioned in my remarks about a circle.

Speaker Change: Circled the search.

Speaker Change: Lance now with video search.

Speaker Change: Approaching over 20 billion inquiries a month now, obviously AI or views.

Speaker Change: It's been really heartening to see users adapt. They understand they can ask more queries, they come back more often, and so, you know, and we have seen growth there. I think we are

Speaker Change: Each of these changes we are definitely expanding what's possible and search.

Speaker Change: And it's been really heartening to see users adapt.

Speaker Change: But very while we rolled out AI, oh, we used to over a billion users.

Speaker Change: I understand that you can ask more queries they come back more often and so you know and we've seen growth. There I think we are.

Speaker Change: There is a lot more innovation there we are actively working on, so I expect Search to continue to evolve significantly in 2025, both in the Search product and in Gemini.

Speaker Change: With very well, we've rolled out AI or views to over a billion users.

Speaker Change: There is a lot more innovation there we are actively working on so I expect search to continue to evolve significantly in 2025.

Speaker Change: and and so you know I think I think that's the opportunity ahead I think we are in early days of

Speaker Change: Both both in the search product and in Gemini.

Speaker Change: What is a powerful new technology and with it, I think we can do a lot more for our users, but at the same time, underpin it.

Speaker Change: And so you know I think I think that's the opportunity ahead I think we are in early days of a what is a powerful new technology and but I think we can we can do a lot more for our users but at the same time underpin it.

Speaker Change: on the foundational bedrock of quality and trust and user experience which we have always done. So we are at 1 billion people. I don't necessarily see a constraint there. You know obviously things like

Speaker Change: On the foundational bedrock of quality and trust and user experience, which we have always done so a weird.

Speaker Change: Latency, cost per query, etc. But, you know, you've seen us over the past 18 months.

Speaker Change: We're at 1 billion people I don't honestly see a constraint there.

Speaker Change: Things like.

Speaker Change: make substantial progress. So we'll continue rolling it out more and we'll keep evolving it. I think search, you know, if I were to take a 12-month outlook, I think, you know, it's going to continue to evolve and we'll be at the forefront of that innovation.

Speaker Change: Latency cost per query etcetera, but you've seen us over the past 18 months make substantial progress. So we'll continue rolling it out more and we'll keep evolving it I think search.

Speaker Change: If I were to take a 12 month outlook. I think you know is going to continue to evolve and will be at the forefront of that innovation.

Speaker Change: Our next question comes from Doug Anuth with JPMorgan. Your line is now open.

Doug Anuth: All right, thanks for taking the question. Perhaps for Sundar and Anant, can you talk more about the infrastructure advantages and CapEx efficiencies you've generated from Google's own TPUs, and how does that influence your CapEx spending going forward relative to peers and other leading cloud service providers? Thanks.

Speaker Change: Our next question comes from Doug Anmuth with Jpmorgan. Your line is now open.

Speaker Change: Alright, thanks for taking the question, perhaps for Sundar can.

Can you talk more about the infrastructure advantages and capex efficiencies, you're generating from Google's own Gpus, and how does that influence your capex spending going forward relative to peers and other leading cloud service providers. Thanks.

Speaker Change: Thanks Doug. I'll take the first part and you know Anant can give color on the CapEx spending part. You know, look, I think one of the, we have well positioned because

Thanks, Doug I'll take the first part then.

Speaker Change: I can give color on the capex spending part.

Speaker Change: In our AI infrastructure, we have a comprehensive solution set. We have all the leading AI accelerators.

Look I think one of the we are well position.

Speaker Change: Because.

Speaker Change: GPUs, TPUs, as well as CPUs, and we are investing in all of them.

Speaker Change: You know in our AI infrastructure, we have a comprehensive solution set right. We have all the leading AI accelerators.

Speaker Change: We have a wonderful partnership with NVIDIA, we are excited for...

Gpus Cpus Essilor Cpus, and we are investing in all of them.

Speaker Change: The GB200s will be one of the first to provide it at scale.

Speaker Change: We have a wonderful partnership with Nvidia we're excited for.

Speaker Change: On the TPU front, I think we have not only are we in our 6th generation,

Speaker Change: The GBP 200, some will be one of the first to provide it at scale.

Speaker Change: I just spent some time with the teams on the roadmap ahead. Couldn't be more excited at the forward-looking roadmap. But all of it allows us to...

Speaker Change: On the TPU front I think we have not only are we in a sixth generation.

Speaker Change: You know I just spent some time with the teams on the roadmap ahead couldn't be more excited the forward looking roadmap and all of the all of it allows us to.

Speaker Change: Both plan ahead in the future and really drive an optimized architecture for it. And I think because of all this both we can have best-in-class

Speaker Change: Both plan ahead in the future and really drive an optimized architecture for it and I think because of all of this board be can have best in class.

Speaker Change: You know, efficiency, not just for internal at Google, but what we can provide through cloud. And that's reflected in the growth we saw in our AI infrastructure and Gen AI services on top of it.

You know efficiency not just for internal that Google, but what we can provide through cloud and that's reflected in the growth. We saw in our AI infrastructure engineering services on top of it.

Speaker Change: So, I'm pretty excited about how we are set up and, you know, we'll continue executing there and maybe Anant can give comments on the CapEx spending. Yeah, sure. So, let me provide a little more color on our capital investments and certainly an important area in this time of investments in AI. As you saw in the quarter, we invested $13 billion in CapEx across the company.

Speaker Change: So I'm pretty excited about how we are set up and we will continue executing there and maybe I'm not can give.

Comments on the Capex spending yeah sure. So let me provide a little more color on our capital investments and certainly an important area and the this time of investments in AI as you saw in the quarter, we invested $13 billion capex across the company and as you think about it really it's divided into two categories. One is our technical.

Anant: And as you think about it, it really is divided into two categories. One is our technical infrastructure, and that's the majority of that $13 billion, and the other one goes into areas such as facilities, the bets, and other areas across the company.

Speaker Change: Infrastructure and that's the majority of that $13 billion and the other one that goes into areas such as facilities. The bets in other areas across the company.

Anant: Within TI, we have investments in servers, which includes both TPUs and GPUs. And then the second categories are data centers and networking equipment.

Speaker Change: With N T. I am we have investments in servers, which includes the T. P use N G. P use and then the second category is our data centers and networking networking equipment.

Anant: This quarter, approximately 60% of that investment in technical infrastructure went towards servers and about 40% towards data center and networking equipment.

Speaker Change: This quarter, approximately 60% of that investments in technical infrastructure once towards servers and about 40% towards the data center and networking equipment and as you think about them. We offer boats Gpus N T. P used both internally and to our customers. So we have choices and options based on what our customer needs and what our.

Anant: As you think about them, we offer both GPUs and TPUs, both internally and to our customers, so we have choices and options based on what our customer needs and what our internal needs are.

Anant: We will be investing in Q4 at approximately the same level of what we've invested in Q3, approximately $13 billion.

Speaker Change: Internal needs are and as you think about the next quarter and going into next year as I've mentioned in my prepared remarks, we will be investing in Q4 at approximately the same level will be invested in Q3 approximately $13 billion.

Anant: And as we think into 2025, we do see an increase coming in 2025, and we will provide more color on that on the Q4 call, likely not the same percent step up that we saw between 2023 and 2024, but additional increase.

Speaker Change: And as we think into 2020 five we do see an increase coming in 2025, and we will provide.

Speaker Change: More color on that on the Q4 call a likely not the same percent step up that we saw between 23 and 'twenty four but additional increase.

Speaker Change: The one other thing I would add on the, Doug, on your first part of the question on the TPUs is

Speaker Change: If you look at the flash pricing, we've been able to deliver externally.

Speaker Change: The one other thing I would add on the or Doug on your first part of the question on the tape uses if you look at the flash pricing, we've been able to deliver externally I think and you know how how much more attractive it is compared to other models of that capability, adding probably that gives gives a good sense of the efficiency.

Speaker Change: I think and you know how how much more attractive it is compared to other models of that capability. I think probably that gives gives a good sense of the efficiencies we can generate from our from our architecture and so and we are doing the same that for internal internal use as well.

Speaker Change: We can generate from our.

Speaker Change: The models for search, while they keep going up in capability, we've been able to really optimize them for the underlying architecture, and that's where we're seeing a lot of efficiencies as well.

Speaker Change: From our architecture and so we are doing the same that for internal internal use as well the models for search while they keep going up and capability you would be.

Speaker Change: Thank you.

Speaker Change: Able to really optimize them for the underlying architecture, and that's where we are seeing a lot of efficiencies as well.

Speaker Change: Your next question comes from Eric Sheridan with Goldman Sachs. Your line is now open.

Speaker Change: Thank you.

Speaker Change: Thank you for taking the questions and Anant, congrats on the new role and welcome to Alphabet. Sundar, maybe one for you on Waymo. What are the key learnings as Waymo has rolled out to additional cities in terms of consumer adoption of the product and how you think about go-to-market strategies for Waymo? And then maybe one for Philipp, in terms of looking at YouTube trends by long-form versus short-form video or shorts, how are you seeing consumption versus monetization trends continue to evolve for YouTube as broken down maybe in that means? Thank you.

Speaker Change: Your next question comes from Eric Sheridan with Goldman Sachs. Your line is now open.

Speaker Change: Thank you for taking the questions and congrats on the new role and welcome to alphabet.

Eric Sheridan: Sundar, maybe one for you on Weibo what are the key learnings as Weibo has rolled out to additional cities in terms of consumer adoption of the product and how you think about go to market strategies for Weibo and then maybe one for fill up in terms of looking at Youtube trends.

Eric Sheridan: <unk> long form versus short form video wear shorts.

Eric Sheridan: Are you seeing consumption versus monetization trends continue to evolve for Youtube is broken down maybe and that means thank you.

Sundar Rooth: Thanks, Eric. On Waymo, obviously, you know, it's been an exciting year, both in the Phoenix market and in San Francisco.

Thanks, Eric on on very well, obviously, you know it's been a it's been an exciting year board.

Speaker Change: We've definitely scaled and particularly scaled paid rides and definitely, you know, surprised us on the positive in terms of how much consumers are loving the experience.

Eric Sheridan: Both boards in the Phoenix market in San Francisco.

Speaker Change: We are definitely scaled and particularly scale paid rides and.

Speaker Change: from a safety standpoint, privacy standpoint, reliability standpoint, etc. So, I think all of that has been on the positive side and, you know, obviously, the product will continue to improve. So, for us, we are mainly focused on...

Speaker Change: Definitely you know it.

Speaker Change: Surprised us on the positive in terms of how much consumers are loving the experience.

Speaker Change: From a safety standpoint, privacy standpoint, reliability standpoint, etcetera. So I think all of that has been on the positive side and and obviously the product will continue to continue to improve so for US we are mainly focused on.

Speaker Change: You know, each city, as we go, the pace at which we can now do an additional city gets easier.

Speaker Change: So we are definitely accelerating that way. That's why you've seen us.

Speaker Change: You know each city as we go the pace at which we can now do a traditional city gets easier. So we are definitely accelerating that way that's why you've seen us move into L. A we're also.

Speaker Change: Uber partnership and expansion to Austin and Atlanta and we have more options where we are looking at the Driven by Waymo model with other network partners, fleet managers, etc.

Speaker Change: Striking partnerships in newer in unique ways a hamster.

Speaker Change: Google partnership and an expansion to Austin, and Atlanta, and we have more options, where we are looking at the driven by Raimo model with other network partners fleet managers et cetera. So it's an exciting moment, but we are still obviously being safety focused but are looking to scale and and testing out of it.

Speaker Change: So it's an exciting moment, but we are still obviously being safety focused, but are looking to scale and testing out a variety of models, which will help us plan ahead well for 2025 and beyond.

Speaker Change: Yes, and to your question on YouTube Shorts, consumption versus monetization, maybe we start with the watch time. It continues to grow actually across YouTube with particular strength in Shorts and in the living room.

Speaker Change: Do you have models, and which will help US plan ahead, well for 2025 and beyond.

Speaker Change: Yes, and to your question on Youtube shorts consumption versus monetization, maybe restored where the watch time. It continues to grow actually across Youtube with particular strength in shorts and in the living room, just to give you a number over 70 billion Youtube shorts are watched everyday on the monetization side the modulation.

Speaker Change: Just to give you a number, over 70 billion YouTube shorts are watched every day.

Speaker Change: On the monetization side, the monetization rate of shorts relative to in-stream viewing is continuing to show a healthy rate of growth. The gap continues to narrow, particularly in the U.S. We also see it in other, more highly monetizing markets.

Speaker Change: Right of shorts relative to in stream viewing is continuing to show a healthy rate of growth. The gap continues to narrow, particularly in the U S. We also see it in other more highly monetizing markets.

Speaker Change: and we continue to work very closely with our advertisers. We're committed to providing them with very effective ways to reach the growing audience here. I talked about advertisers now being able to book first position on shorts blocks. That's exciting. Shorts are also integrated into video reach campaigns, YouTube select. So you're really giving brands the precise targeting options here. So yeah, we're pleased with the progress we're making here.

Speaker Change: We continue to work very closely with our advertisers, we're committed to providing them with very effective ways to reach the growing audience here I talked about of advertisers not being able to book for <unk> position on shorts blocks that's exciting.

Speaker Change: Shorts also integrated into video reach campaigns Youtube select Michele.

Speaker Change: So you really giving brands the precise targeting options here. So yeah. We're pleased with the progress we're making here.

Speaker Change: Our next question comes from Ross Sandler with Barclays. Your line is now open.

Speaker Change: Yeah.

Speaker Change: Hey everybody, thanks for taking questions, congrats on that.

Speaker Change: Our next question comes from Ross Sandler with Barclays. Your line is now open.

Speaker Change: Oh, Hey, everybody. Thanks for taking my questions Congrats on the.

Speaker Change: Are there any milestones you can share around where Gemini usage is compared to the 250 million weekly active users that ChatGPT is seeing right now? And then the second question is,

Ross Sandler: Okay. So for Sundar, given the high stakes around native AI product usage are there any milestones you can share around.

Ross Sandler: Gemini usages compared to.

250 million.

Speaker Change: I'm sure this is something you guys have been thinking about for a while, but it looks like the way that the Google versus DOJ search trial is going, there's a decent likelihood that

Ross Sandler: Weekly active users that you're seeing right now and then the second question is.

Ross Sandler: Sure. This is something that you guys have been thinking about for a while but it looks like the way that the Google versus Doj.

Speaker Change: The Apple ISA contract and some of the Android

Ross Sandler: The trial is going.

Speaker Change: Pre-install contracts are going to be voided out at some point in the future.

Ross Sandler: Decent likelihood.

Ross Sandler: The alcohol.

Speaker Change: So, I guess the question is, what plans do we have in place to recapture some of the usage that might be going away in those search access points? How can we gain share on iOS queries if the Safari toolbar access point were to change? Thank you very much.

Ross Sandler: Contract with some of the Android pre install contracts are going to be void. It out at some point in the future.

Ross Sandler: The question is what plans do we have in place to recapture some of the usage of that.

Might be going away in the search at this point, how can we gain share on iOS.

Speaker Change: Thanks, Ross. Look, I think...

Ross Sandler: So far a toolbar axis point were to change.

Speaker Change: You know, obviously, we are serving Gemini across a lot of touch points, including it's now, you know, over a billion people are using it in search, accessing. We are getting it across our products.

Ross Sandler: Thank you very much.

Speaker Change: Thanks Ross.

Speaker Change: Thank you.

Speaker Change: You know obviously, we are serving Gemini across a lot of touch points include.

Speaker Change: Including its now over 1 billion people are using it in search accessing a weird getting it across our products are the Gemini app itself as you know.

Speaker Change: Our API volume, I commented on the Gemini APIs having gone up 14x in the past six months. So we are seeing growth across the board, you know, and the Gemini...

Speaker Change: Very strong momentum on user growth.

Speaker Change: Our API volume I commented on the Gemini Apa's, having gone up 14 X in the past six months. So we are seeing growth across the across the board.

Speaker Change: Integration into Google Assistant is going super well on Android. The user feedback is positive, so we are continuing to roll that out more. So I think, I think we'll, you know, you will see us

Speaker Change: And the Gemini.

Speaker Change: Our integration into Google Assistant is going Super well on Android user feedback is positive. So we are continuing to roll it out more so I think I think we will you will see us.

Speaker Change: We are investing in the next generation of models and as part of that we are investing in scaling up.

Speaker Change: The usage of both directly to the models, as well as both on the consumer and the developer side.

Speaker Change: We are investing in the next generation of models and as part of that we are investing and scaling up.

Speaker Change: The usage.

Speaker Change: I'm pleased with the momentum there.

Speaker Change: Usage of both directly to the modeled first sort of both on the consumer and the developer side. So I think.

Speaker Change: On the legal trials, obviously, it's not appropriate for me to speculate, given it's in the middle of ongoing litigation, but what I would say is, stepping back.

Speaker Change: I'm pleased with the momentum there.

Speaker Change: On the second on the <unk> on on on the legal.

Speaker Change: Trials are obviously, you know I don't want to.

Speaker Change: It's not appropriate for me to speculate given it's in the middle of ongoing litigation, but what I would say is a stepping back.

Speaker Change: Stepping back, look, we've always, and even as the court acknowledged, clearly we've reached a position of success because we've deeply innovated and we're continuing to do so.

Speaker Change: Stepping back look we've always an evenness as the court acknowledged.

Speaker Change: Clearly.

Speaker Change: People have chosen us because they viewed us as the best product, be it consumers or partners.

Speaker Change: We have reached a position of success because we have deeply integrated and we are continuing to do so.

Speaker Change: And we have a long track record of working hard to make sure our products are as easily available to users as possible across all platforms.

Speaker Change: People have chosen us.

Speaker Change: You know because they are viewed as the best product beat consumers our partners.

Speaker Change: So, you know, all that approach and all the learnings over the years I think will all be, you know, will give us a strong foundation. First of all, we plan to vigorously defend, you know, these cases.

Speaker Change: And we have a long track record of working hard to make sure our products are as easily available to users as possible across all platforms. So you know all of that approach and all of the learnings over the years. So I think we'll all be well will give us a strong foundation.

Speaker Change: and some of the early proposals from the DHA etc have been far-reaching and and you know we plan to you know I think they could have unintended consequences particularly

Speaker Change: First of all we plan to vigorously defend it.

Speaker Change: You know these cases and some of the early proposals from the Doj et cetera have been far reaching.

Speaker Change: to the dynamic tech sector and the American leadership there. And so we plan to be, we plan to engage very vigorously there. Thanks.

Speaker Change: And we plan to you know I think they could have unintended consequences, particularly to the dynamic.

Speaker Change: Thank you.

Speaker Change: Victor and the American leadership, there and so we plan to be we plan to engage very vigorously there. Thanks.

Speaker Change: Your next question comes from Justin Post with BAML. Your line is now open.

Speaker Change: Thank you.

Speaker Change: Your next question comes from Justin Post with B a M. L. Your line is now open.

Speaker Change: Great. Thank you I wanted to ask a little bit more about AI overviews, maybe two parts you mentioned youre seeing increasing increasing queries are activity could you help us understand that for the 1 billion users who have had access to the product or what youre seeing there and then on the monetization side is there a chance that AI overviews.

Speaker Change: And then on the monetization side, is there a chance that AI overviews would help monetize some of the information queries that maybe you weren't making much monetization from with old formats?

Speaker Change: Could help monetize some of the information queries that maybe maybe you weren't making much monetization from with old formats. Thank you.

Speaker Change: Thanks, Justin. Look, I think...

Speaker Change: You know, the main thing I would say is, as we have rolled out, you know, we're obviously now scaling it out. We just rolled it out to 100 new countries and territories, and that's what will get us to a billion users.

Speaker Change: Thanks, Justin look I think.

Speaker Change: You know the.

The main thing I would say is as we have rolled out you know, we've obviously now scaling it out we just rolled it out to 100, new countries and territories and that's what will get US 2 billion users.

Speaker Change: But amongst the users where we had already rolled out, we clearly see strong engagement. It's one of the most positive user satisfaction launches.

Speaker Change: Amongst the users where we had already rolled out we clearly see strong engagement.

Speaker Change: We have done in search and, you know, it is increasing overall search usage. Like people are asking, you know, more complex questions, different types of questions. They are exploring a wider range of websites and what's particularly exciting is that

Speaker Change: It's one of the most positive user satisfaction launches.

Speaker Change: We have done in search.

And you know it is increasing.

Speaker Change: Overall search usage like people are asking.

Speaker Change: In a more complex questions different types of questions. They are exploring a wider range of websites and what's particularly exciting is that.

Speaker Change: This growth actually increases over time as people learn to adapt to that new behavior.

Speaker Change: So I'll stick to those comments and I think, you know, to the second part of your question on the monetization side.

Speaker Change: This growth actually increases over time as people learn learn to adapt to that new behavior. So.

Speaker Change: You know so I'll stick to those comments and I think you know I E. You know due to the second part of your question on the monetization side.

Speaker Change: You know, I think, well, Philipp can answer more of it.

Philipp Schindler: Yeah, so the transition year is working well, including for ads. As you know, we recently launched ads within AI overviews on mobile in the U.S.

Speaker Change: No I think.

Speaker Change: Filipe can answer motivate filler yes.

Speaker Change: So.

Speaker Change: The transition here is working well including for ads.

Philipp Schindler: And this really builds on our previous rollout of ads above and below the AI overviews.

Speaker Change: As you know, we recently launched ads within a overviews on mobile in the U S and this really builds on our previous rollout of ads above and below the air overviews.

Philipp Schindler: So, overall, for AI overuse, we see monetization at approximately the same rate, which gives us a really strong base on which we can innovate even more. And specifically to your question of monetizing queries where we can monetization potentially at the moment, yes, I can see that there is an opportunity for that.

Speaker Change: So overall for your overview as we see monetization at approximately the same rate, which gives us a really strong base on which we can innovate even more and specifically to your question of monetizing inquiries, where weaken monetization potentially at the moment, yes, I can see that there is opportunity for that.

Speaker Change: Thank you.

Speaker Change: Your next question comes from Michael Nathanson with Moffitt Nathanson. Your line is now open.

Speaker Change: Thank you.

Speaker Change: Sure.

Michael Nathanson: Thanks, I have one for Sundar. Sundar, there was this perception, maybe even false, that Alphabet was not as innovative on AI as it should.

Speaker Change: Your next question comes from Michael Nathanson with Moffett Nathanson. Your line is now open.

Michael Nathanson: Thanks, I had one for Sundar.

Michael Nathanson: There is this perception fall fat.

Michael Nathanson: And it clearly shows that that was wrong. You're moving pretty quickly, rolling out new products. Can you talk a bit about how you may have changed?

Michael Nathanson: That was it was not.

Michael Nathanson: On AI as they should.

Michael Nathanson: New York Structure. I know you've combined some assets, but talk a bit about how you maybe rethought how you go to market with with some of your innovation products and maybe what's changed operationally as AI has picked up steam for you guys.

Michael Nathanson: Clearly show that that was wrong, you're moving pretty quickly rolling out new products could you talk a bit about how you may have changed your.

Michael Nathanson: Structure I know you combine.

Michael Nathanson: Combined some assets could talk bit about how you may be rethought, how your go to market with with some of your innovation products and maybe what's changed operationally is as AI has picked up steam for you guys.

Speaker Change: Thanks, Michael look I I definitely think.

Speaker Change: Given the important moment, we had to gear up to build models from scratch that could be productionized at scale on our architecture, and that's what the Gemini era was about. So there was a fixed cost of getting it all set up and getting the Gemini era underway.

Speaker Change: You know, it's a it's an extraordinary opportunity and I think the company.

Speaker Change: Given the important moment, we had to gear up to to build models from scratch that could be production hoist at scale.

Speaker Change: You know on our architecture and that's what the Gemini era was about so there was a fixed cost of getting it all set up and getting the Gemini era underway, but now I think we are in much more of a virtuous cycle with a lot of velocity in the underlying models.

Speaker Change: But now I think we are in much more of a virtuous cycle with a lot of velocity in the underlying models.

Speaker Change: which is progressing well.

Speaker Change: <unk> had two generations of Gemini model, we are working on the third generation.

Speaker Change: And teams internally are now set up much better to consume the underlying model innovation and translate that into innovation within their products.

Speaker Change: Which is progressing well and teams internally are now set up much better to consume the underlying model innovation and translate that into innovation within their products. So now you know all the seven products, which are 2 billion users each of them. The first versions of.

Speaker Change: So now, you know, all the seven products which have two billion users each have done their first

Speaker Change: Versions of Incorporating Gemini and you know there is Aggressive Roadmap Ahead for 2025. I mentioned earlier search alone, I think there's a lot more we can do.

Speaker Change: Incorporating Gemini and you know there are there is a aggressive roadmap ahead for 2025 I mentioned earlier search alone I think there's a lot more we can do.

And we're also enabling a smaller.

Speaker Change: those types of efforts as well.

Speaker Change: Smaller teams to <unk>.

Speaker Change: Through it all.

Speaker Change: Newer experiences in notebook L. M was the first since stash instantiation of.

Speaker Change: But then we had to do this when the company evolved from desktop to mobile. We are restructuring the company. Effectively, if you think of Google as a neural network, we are forming new synapses, which work much better to adapt to this moment. And I think that sets us up well for the year ahead.

Speaker Change: Those types of efforts as well through it all.

Speaker Change: But then we had to do this and the company was from desktop to mobile we are restructuring the company effectively if you think of Google is a neural network, we are forming new synapses.

Speaker Change: and we are bringing all of this innovation to the outside world through cloud as well and so we are going to we are going to do that and so that's an additional opportunity at this moment.

Speaker Change: Which work much better turn up to this moment and I think that sets us up well for the year ahead.

Speaker Change: And we are bringing all of this innovation to the outside world through cloud as well and so we're going to we're going to do that and so that's an additional opportunity at this moment.

Speaker Change: Thanks Sundar.

Speaker Change: Our next question comes from Mark Mahaney with Evercore. Your line is now open.

Speaker Change: Yeah.

Thanks Sandra.

Mark Mahaney: Okay, I'd like to ask two questions please to Anant. First, the margins at cloud have really started to ramp nicely.

Speaker Change: Our next question comes from Mark Mahaney with Evercore. Your line is now open.

Mark Mahaney: Okay I'd like to ask two questions. Please two are not first at margins at cloud. It really started to ramp nicely. There are comps in the industry with still materially higher operating margins I imagine that's a matter of scale and trying to catch up from a third place position, but how do you think about the margin trends youre seeing and what's your level of confidence that those.

Speaker Change: Website. The please visit www.paranormal密 sulla.com, website.

Mark Mahaney: Margins can kind of match up to other industry players that are doing closer to 30% margins and then secondly, just across the board. When you think about the business that's running at what 30.

Mark Mahaney: What 32% operating margins this last quarter and you come in looking at this fresh Is it clear to you that there are a lot of kind of newfound cost efficiencies or ongoing cost efficiencies? Like what do you see is the biggest opportunities to kind of take those margins and maybe maybe over time take a materially higher? Thank you very much

Mark Mahaney: 32% operating margins this last quarter and you come in looking at this fresh is it clear to you that there are a lot of kind of newfound cost efficiencies are ongoing cost efficiencies like what do you see as the biggest opportunities to kind of take those margins and maybe maybe I'm over time take a materially higher thank you very much.

Speaker Change: Thanks, Mark, for both of these questions. Let me start on the cloud margin. So certainly very pleased to see not just the top-line growth rate, but the margin expansion to 17%. Really outstanding work by our cloud team to drive continued benefit to customers.

Speaker Change: Mark for for both of these questions. Let me start on the cloud margin. So certainly very pleased to see not just the top line growth rate, but the margin expansion to 17% really outstanding work by our cloud team to drive continued benefit to customers.

Speaker Change: And as you think about that margin expansion, really it's a few things, you've mentioned one of them.

Speaker Change: The first is scale. Obviously, as we scale the business, we have more opportunity for margin expansion. But the second...

Speaker Change: And as you think about that margin expansion really it's a few things you've mentioned one of them. The first is scale, obviously as we scale the business, we have more opportunity for margin expansion, but the second and shouldn't be underestimated is the work. The team has done to drive efficiencies across the cloud business than you were seeing those come through whether his first through head.

Speaker Change: And it shouldn't be underestimated, as the work the team has done to drive efficiencies across the cloud business, and we're seeing those come through, whether it's through headcount management or facilities management, other process efficiencies, we're seeing that go to the bottom line and driving the results you're seeing this quarter.

Speaker Change: Count management facilities management other process efficiencies, we're seeing that go to the bottom line and driving the results you're seeing this quarter.

Speaker Change: Hard to obviously compare to any of our peers or competitors, it's a different business, but more to come. Now, the one thing to remember, and I've mentioned this in my prepared remark, this is an area that requires investment, and a lot of these investments, you think about servers, etc.,

Speaker Change: Obviously compared to any of our peers or competitors, it's a different business, but more to come now the one thing to remember and I've mentioned this in my prepared remarks. This is an area that requires investment and a lot of this investments think about servers et cetera.

Speaker Change: is based on demand we're seeing from customers. So this will translate to revenue in the fairly short term.

Speaker Change: But that means there are headwinds associated with the overall, the annual run rate or cost associated with these investments, whether it's in the form of depreciation or just

Speaker Change: Is based on demand, we're seeing from customers. So they will this will translate to revenue in the in the fairly short term.

Speaker Change: But that means there are head there are headwinds associated with the overall the annual run rate or costs associated with these investments whether it's in the form of the depreciation or just.

Speaker Change: Construction costs are not capitalized, etc. So we'll continue to drive efficiency in the business to try and offset some of these, but this is how I'm thinking about the dynamics for cloud.

Speaker Change: Construction costs are not capitalized etcetera. So we will continue to drive efficiency in the business to try and offset some of this but this is how I'm thinking about the dynamics for cloud.

Speaker Change: Overall, for the business,

Speaker Change: This is one of my key priorities is to look across the organization to see what we can do in terms of driving further efficiencies.

Speaker Change: Overall for the business.

Speaker Change: There's really good work that was done started by Ruth Sundar and the rest of the lead team to re-engineer the cost base.

This is one of my key priorities is to look across the organization to see what we can do in terms of driving further efficiencies.

Speaker Change: But I think any organization can always push a little further.

Speaker Change: There's really good work that was done starting by Ruth Sundar and the rest of the lead team to reengineer the cost base, but I think any organization can always push a little further.

Speaker Change: and I'll be looking at additional opportunities really across all the elements that I've mentioned on my prepared remarks.

Speaker Change: And I'll be looking at additional opportunities really across all the elements that I've mentioned on my prepared remarks, you know think not just about the size of the organization, but but mostly how we operate and how we run the business and I think when you simplify the organization Sunday just made a few comments on that and when we use AI within our own process.

Speaker Change: Now, all of that will go against substantial increases in capital investment, as I've mentioned, going into 2025. And again, I'll give more color when we are on the Q4 call. So hopefully, we'll be able to drive efficiencies to work towards offsetting some or all of that increase.

Speaker Change: Season, how we get work done there are some efficiencies or opportunities for efficiencies now all of that will go against.

Speaker Change: Substantial increases in capital investment that I, just mentioned going into 2025, and again I'll give more color. When we are on the Q4 call.

Speaker Change: Thank you very much.

Speaker Change: So hopefully we'll be able to drive efficiencies to work towards offsetting some or all of that increase.

Speaker Change: Our next question comes from Ken Gurelski with Wells Fargo. Your line is now open.

Speaker Change: Thank you very much.

Speaker Change: Okay.

Speaker Change: Thank you so much, too, if I may.

Speaker Change: Our next question comes from Ken Corral ski.

Speaker Change: who are just out on search.

Speaker Change: With Wells Fargo. Your line is now open.

Speaker Change: Thank you so much two if I may.

Speaker Change: First.

Speaker Change: Just.

Speaker Change: On search.

Speaker Change: One, an agent-like answers engine, and then two, a links-based, more traditional search engine.

Speaker Change: Why does it make sense to have trickled why doesn't it make sense to have two completely different search experiences.

Speaker Change: You could innovate on both and let the consumer decide, maybe think of it as the ultimate A-B test.

Speaker Change: And an agent like answers engine, and then to a link space more traditional search engine.

Speaker Change: So, I'd be curious to get your thoughts there. And then the second, if you could touch a little bit on the consumer environment in 4Q. Perhaps somebody has a better view into the health of the consumer.

Speaker Change: You can innovate on both and let the consumer decide it's maybe think of it as the ultimate AB test. So I'd be curious to get your thoughts there and then the second if you could touch a little bit on on the consumer environment in <unk>, perhaps nobody has a better view into the health of the consumer and in multiple verticals.

Speaker Change: and in multiple verticals. If you could talk a little bit about, you talked about tougher comps on the Asia e-commerce side, but any other trends you could point out, be it around the election or fewer holiday days this year, that would be really helpful. Thank you.

Speaker Change: If you could talk a little bit about your you talked about tougher comps on the Asia e-commerce side, but any other any.

Speaker Change: Other trends you could point out.

Speaker Change: and why don't I take the first part and then Philipp can give color on the consumer vertical trends. On the first part, look, you know it.

Speaker Change: Around the election or fewer holiday days this year.

Speaker Change: It would be really helpful. Thank you.

Speaker Change: And why don't I take the first part and then flip can give color on the consumer vertical trends are.

Speaker Change: In this moment, you know, people are using a lot of...

Speaker Change: On the first part.

Speaker Change: You know it.

Speaker Change: In this moment.

Speaker Change: People are using a lot of <unk>.

Speaker Change: Thus words like cancer engines, and all that stuff I mean, Google started answering questions about 10 years ago in our search product with featured snippet. So look I think ultimately you are.

Speaker Change: Serving users, user expectations are constantly evolving and and we work hard to stay a step ahead anticipate and stay a step ahead and this is why you know we've kind of really brought multi morality on the input side and the output side and search pretty natively.

Speaker Change: Serving users user expectations are constantly evolving.

Speaker Change: And and we work hard to stay a step ahead anticipate and stay a step ahead and this is why.

Speaker Change: So we've kind of really broad multi modality on the input side and the output side and search pretty natively.

Speaker Change: And and so you know we'll continue expanding expanding.

Speaker Change: Innovations there I do think having two surfaces for us allows us to experiment more you know and there are I view this momentous as.

Speaker Change: Moment in which there are new use cases which we will be able to do which we couldn't have done before and so having the flexibility.

Speaker Change: Having product surfaces where we can move very, very fast.

Speaker Change: Moment in which there are new use cases, which we will be able to do which we couldn't have done before and so having the flexibility having product surfaces, where we can move very very fast I think that's actually helpful. And so we are embracing it and going to lean into this moment like we have done in the past.

Speaker Change: I think it's actually helpful and so we are embracing it and going to lean into this moment like we have done in the past year and and I think I think that will play out well well for users so let's

Speaker Change: Yes, on the vertical trends, look, I called out certain other revenues being led by growth in the financial services due to improved economics in the insurance industry, followed by retail. But I think it's fair to say, in general, we saw broad-based strength across all verticals.

Speaker Change: Year in and I think I think that'll play out well for uses for it.

Speaker Change: Yes on the vertical trends look I called out search and other revenues being led by growth in the financial services due to improved economics in the insurance industry.

Speaker Change: maybe specifically to election-related ad spend. We had a slight tailwind from election-related ad spend in the third quarter, which was a little bit more pronounced in YouTube ads.

Speaker Change: Hello by retail, but I think it's fair to say in general we saw broad based strength across all verticals.

Speaker Change: Specifically two election related to AD spend we had a slight tailwind from election related spend in the third quarter.

Speaker Change: And our last question comes from Stephen Ju with UBS. Your line is now open.

Speaker Change: Which was a little bit more pronounced in Youtube ads.

Speaker Change: And our last question comes from Stephen Ju with UBS. Your line is now open.

Okay. Thank you so much so sundar.

Speaker Change: They can separate blog posts from Google cloud.

Speaker Change: Talking about the real life use cases for Jen I think you highlighted what was a pretty material increase in a number of companies that are starting to turn there I guess ideas into products I think it was like 80% increase in.

Speaker Change: for a six-month period, and...

Speaker Change: I think you guys also published some survey data saying that your customers are generating tangible ROI there. So, you know, can you update us on what you're seeing in terms of sales cycles, you know, perhaps accelerating? And, you know, how much of the heavy lifting the cloud team may have to do to help your customers turn those ideas into reality?

Speaker Change: The six month period end.

Speaker Change: You guys also published some survey data, saying that youre.

Speaker Change: Customers are generating tangible ROI. There. So can you update us on what youre seeing in terms of sales cycles, perhaps accelerating.

Speaker Change: How much of the heavy lifting the cloud team they have to do to help your customers turn those ideas into reality.

Speaker Change: Or quickly.

Speaker Change: Philip I think one of the feedback that we're getting from advertisers is that while the initial use case for peanuts for them more than search.

Speaker Change: and upper funnel campaigns and budgets as well. So can you talk about whether that's an anecdote or something that you're already seeing perpetuate among all of your advertisers? Thank you.

Speaker Change: Starting to use it more and more for mid and upper funnel campaigns and budgets as well. So can you talk about whether that's an anecdote or something that you're already seeing perpetuate among all of your advertisers. Thank you.

Speaker Change: You know, on the cloud side, look, I think, you know, you...

Speaker Change: You may all.

Speaker Change: Sorry, on the cloud side, look, I do think you hinted in your question itself.

Speaker Change: On the cloud side.

Speaker Change: Okay. Thank you Hugh.

Speaker Change: definitely customers are leaning in this moment you know wherever we have been working

Speaker Change: Sorry on the cloud side look I do think you hinted in your question itself.

Speaker Change: We are definitely seeing real concrete proof points, delivering real impact, right? And be it in their user experience, be it in the bottom line, etc. And so I gave a few examples on my remarks, and, you know, I think customers are getting savvier. We ourselves are going through a lot of learnings.

Speaker Change: Definitely customers are leaning in this moment are better where we have been working.

Speaker Change: We are definitely seeing real concrete proof points are delivering real impact right in a beat in their user experience be it in the bottom line et cetera. So I gave a few examples on my on my remarks.

Speaker Change: Type可能在平台上成為 YesBut catchup a different new platform that has matured in Local technology and the other country has really developed a relatively sophisticated and modular ecosystem both in deploying this within google as an enterprise and bringing those learnings to our customers outside and as we see

And.

Speaker Change: Customers are getting Savvier, we ourselves are going through a lot of learnings.

Speaker Change: Bolton deploying this but didn't Google as an enterprise and bringing those learnings to our customers outside and as we see common patterns.

Speaker Change: across the breadth of sectors we serve and I think we are bringing those learnings. So I would say

Speaker Change: If anything, I think over time, I think organizations are beginning to understand more. They are leaning in. Our models are getting better. We are building more comprehensive solutions on top of it. So I think we are well set up for 2025, and I think there will be continued momentum in this area.

Across the breadth of sectors, we serve and I think we are bringing those learning so I would say.

Speaker Change: If anything I think over time I think organizations are beginning to understand more or they're leaning in our models are getting better. We are building more comprehensive solutions on top of it. So I think I think I think we are well set up for 2025, and I think Ah I think there'll be continued momentum in this area.

Speaker Change: And on the P-MAX side, look, we continue to see success with P-MAX, and we see those success stories really from large advertisers, from agencies, from SMBs, across marketing objectives, across different verticals.

Speaker Change: And on the Pemex side look we continue to see success with <unk> and we see those success stories really from large advertisers from agencies from smbs across marketing objectives across different verticals. It's a very cost effective in it and it really finds customers wherever they are across all the different Google channels and with introduction.

Speaker Change: It's a very cost-effective and it really finds customers wherever they are across all the different

Speaker Change: Google Channels, and with the introduction of Gemini, we added a lot of new features to PMAX.

Speaker Change: For example, deliver more powerful performance, help advertisers scale, build high-quality creative assets, and so on. But going directly to your question on the funnel, also keep in mind we have a great product with DemandGen that is all about inspiring consumers beyond the initial awareness and to take action.

Speaker Change: Gemini we added a lot of new features to P. Max.

Speaker Change: For example to deliver more powerful performance help advertise the scalable high quality accretive assets and so on.

Speaker Change: But going directly to your question on the funnel and also keep in mind, we have a great product with <unk> that is all about inspiring consumers beyond the initial over awareness and to take action and we think demand Gen is actually a very powerful tool to win in today's marketplace with marketers and we can't wait to see actually a lot more value to withdraw.

Speaker Change: And we think DemandGen is actually very powerful to win in today's marketplace with marketers and we can't wait to see actually what more value it will drive.

Speaker Change: Thank you.

Speaker Change: Thank you and that concludes our question and answer session for today. I'd like to turn the conference back over to Jim Friedland for any further remarks.

Speaker Change: Yes.

Speaker Change: Thank you.

Speaker Change: Thank you and that concludes our question and answer session for today I'd like to turn the conference back over to Jim Friedland for any further remarks.

Jim Friedland: Thanks everyone for joining us today. We look forward to speaking with you again on our fourth quarter 2024 call. Thank you and have a good evening.

Jim Friedland: Thanks, everyone for joining us today, we look forward to speaking with you again on our fourth quarter 2024 call.

Speaker Change: Thank you everyone. This concludes today's conference call. Thank you for participating. You may now disconnect.

Jim Friedland: And have a good evening.

Speaker Change: Thank you everyone. This concludes today's conference call. Thank you for participating you may now disconnect.

Speaker Change: Hi everyone! I welcome you all to the live session of ReactJS full course by Intellipaat. This session is conducted by multiple experts who will be teaching you all about ReactJS from basic to advanced level.

Speaker Change: In this session, we have also covered hands-on demo projects and also interview questions and answers.

Speaker Change: But before we begin the session, make sure to subscribe to our channel and also hit on the bell icon so that you will never miss an update from us. Begin with introduction to ReactTA, then after that we will explain you about DOM and VirtualDOM. Then later on, we will see the difference between class, functions, and components.

Speaker Change: Once we finish that, we will teach you about React Hooks and also do a quick hands-on on how to build custom hooks. Post that, we will be learning about ReactJS Bootstrap. Once we finish that, we will be doing a hands-on demo on creating class components and function components.

Speaker Change: Once we finish all the hands-on demo, we'll be telling you the difference between AngularJS and ReactJS. Post that, we'll be learning about how to become ReactJS developer. Then, finally, we'll be covering ReactJS interview questions and answers.

Speaker Change: So this is the agenda of the video. This video is going to be very interesting. So stay tuned and watch the video till the end. Now let's begin the session.

Speaker Change: What is React.js? We'll try and demystify what React.js is and why is it important for us to understand what it actually means. Why React.js is so popular is something we'll take a look at afterwards, but firstly we'll have to understand what React.js is all about. So React.js is a UI library. UI stands for User Interface.

Speaker Change: So, it's a user interface library that allows developers to build small, self-contained UI components which can be used to build a user interface.

Speaker Change: So, whenever you take a look at the user interface of any application, whether it's a web application, mobile application, desktop application, you will see that it forms, it's built using some components. These components are repeated all over the platforms, so even on an Android mobile, these components may be repeated. So, the components could be a button, it could be a text field, an editable text field.

Speaker Change: a table view, it could be an image carousel in which you can take a look at all the images that are available by swiping on them or clicking on the arrow buttons. It could also be some image gallery and all of that. And many of these components are built by grouping together smaller components. So a good example of this is a form. A form which is used to collect users' information is built by grouping smaller components together. Components such as text field, input field, submit button, and labels, and things like that. So ReactJS allows us to write JavaScript code that allows us to build these components. These components can then be arranged in a hierarchy structure in which we define where does a particular component go declaratively. And using that, we can build up the entire user interface.

Speaker Change: The user interface built using React.js is built completely using JavaScript.

Speaker Change: So, we don't have to understand and define how you can use these components. We just need to define what these components look like, what their styles are going to be, and how they are going to interact with the events that the user dispatches. So, when the user clicks on a particular component, what should happen, and should something happen or not? Things like that. So, React allows developers to write really declarative code in JavaScript to efficiently assemble together the user interface.

Speaker Change: So, the thing is that what React allows us to do is that it allows us to declare our user interface rather than imperatively dispatching commands that lets the browser know how to piece together the user interface.

Speaker Change: And that's how we're supposed to do that.

Speaker Change: Keeping that in mind, when we declare our code using React.js, it feels like we're writing HTML, but that's not what we're doing, which we'll cover in a later segment, but that was one of the major controversies with React when it released. So if you've seen some code in React, you can see it as being written in HTML with CSS and JavaScript, which is not exactly how it's supposed to be. So we'll cover that as well. It allows us to create user interfaces using just JavaScript and writing the user interface code very declaratively. We do have to create the markup for our components so that our components understand what is it we're trying to display, fencing button or something like that.

Speaker Change: Also, React.js is maintained by Facebook and was released in 2013. So, as you can see, React.js has been out for quite a while and there have been some massive advancements in the development of React. Currently, React.js is in its 16th version and 17th version is being released. React.js is by far one of the most popular user interface libraries. It has overtaken Angular and Vue in popularity.

Speaker Change: and in job requirements as well. React.js is very popular because it's very simple. It's very easy to understand, and it's very easy to learn and use as well. Now, when I say easy, I don't necessarily mean simple. There is a sufficient mental model shift that you need to understand.

Speaker Change: If you work with the old school way of creating DOM elements and then updating the DOM elements and then inserting the data, that is going to be difficult in this scenario. So we'll have to take a look at that, but overall, it works fine. So in conclusion, what React.js is, is that it's a user interface library that allows us to build user interfaces by declaratively writing JavaScript code. The JavaScript code is maintained by React. So if any changes happen to the thing that we have rented, all the components, React will take care of assembling those components, re-rendering the changes, and making sure everything's done as efficiently as possible. If React was not there, then we would have to write the code to figure out what are the things that we have changed. And once we do change, then we have to display it to the user. And that's about it.

Speaker Change: So DOM actually stands for Document Object Model, that I think we all know. It is a tree-like structure that is used to represent the structure of all the elements of an HTML document.

Speaker Change: from the top of our HTML tag to the particular element that we're interested in, and we can manipulate it in Java.

Speaker Change: We can manipulate it by getting a reference to it, we can manipulate it by, after getting a reference to it, we can manipulate it by changing its attributes, its content, its type, there could be a number of things that we can do.

Speaker Change: and that allows us to manipulate it on the fly. So when we click a button and we want to make some changes to our page's HTML content, we can do it using manipulating the DOM. So DOM creates a hierarchical structure.

Speaker Change: And you can just traverse the structure of the tree once you understand the structure. And with that structure, you can pinpoint to the content that you want to manipulate or say, and you can do that. Now, DOM is a standard interface for interacting with web pages.

Speaker Change: using programming or scripting languages.

Speaker Change: It's not that DOM is something that people haven't used yet. People use DOM all the time and it's a standard programming interface. So anyone who interacts with the webpage, who tries to get data from a webpage, converts the HTML string into the DOM structure and then manipulates it the way they want to.

Speaker Change: The reason why JavaScript does it is because it's exactly the kind of thing that it was built to do. JavaScript was created so that it can manipulate and add functionality to web pages.

Speaker Change: Let's take a look at what it is and why do we need to use it.

Speaker Change: So React is a user interface library, but it's built with the purpose of building user interfaces. It's not limited to web. It could also be extended to be used on mobile applications or virtual reality applications such as React VR or React Native, not in that order. But you can use React to build applications for the web or the mobile platform, which could be cross-platform such as Android and iOS. And you can also use it to build applications for virtual reality apps.

Speaker Change: Now, that being said, how can you build such

Speaker Change: Applications for such different platforms when you have a single library.

Speaker Change: Well, the answer is that they have separated the essential parts from the variable parts. So, when we're using it on the web...

Speaker Change: we can basically just use React DOM and it will take care of it all for us.

Speaker Change: That's what ReactDOM actually is. ReactDOM is nothing more than just a library.

Speaker Change: All these platforms have their own bridging systems so you don't have to worry about that at all. All you have to worry about is how you can build user interfaces using DOM or React DOM in that specific scenario. So all React DOM does is to bridge the gap between the React user interface library and the web DOM platform. So if you want to build React applications by creating components that can then be translated into DOM elements and managed by React, we use React DOM.

Speaker Change: specifically for that purpose. Now let's take a look at UI without ReactJS.

Speaker Change: So when you're building user interface without ReactJS, what are the kinds of things that you need to tackle?

Speaker Change: The first thing is decomposition. So, we can quite easily build user interfaces without React.js. So, if you want to build a user interface without React.js, you can do it. Especially for smaller applications, it's also a recommended way that you go without React.js. But for any reasonably sized application, it involves some really difficult challenges.

Speaker Change: One of those challenges is decomposition. So, when you're using React.js, we can create small, isolated, individual components, which can then be composed together to create the entire user interface.

Speaker Change: So if you have a user interface that you want to create using React.js, you can do so, but without React.js, creating smaller components, combining which you can create a larger user interface can be really difficult.

Speaker Change: Whereas with React.js, decomposition is really easy. So that's why React.js is much more preferred over other component libraries. So without React.js, we would need to create the HTML tags, then use the JavaScript to add event handling codes and wire everything else.

Speaker Change: So, without ReactJS, what we do in plain JavaScript is firstly we create the HTML code for our user interface, style it using CSS, then we get a handle to each of the components that we are interested in, such as if we are interested in knowing when a button is clicked and all of that. We get those user interface elements.

Speaker Change: and then we add some user interface elements, add some event handling code to it. So if we have a button that we want to respond to when it's clicked on, what we can do is we can just create an on-click handler, which will run when the button is clicked on. Now the browser takes care of it all. When the user clicks on the button, the event code that we have associated with the event handling code will run.