Alphabet Inc. (NASDAQ:GOOG) Q3 2023 Earnings Call Transcript

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And we’re overall encouraged by the ecosystem engagement on privacy sandbox. We’ll continue to work with the industry and regulators in how these technologies can support the transition to, frankly, a more private web.

Ken Gawrelski: Thank you.

Operator: And our last question comes from Mark Mahaney with Evercore. Your line is now open.

Mark Mahaney: Thank you. Two questions, please. Ruth, you talked about these elevated levels of investments in Q4 and in ’24. I’m sorry, were you referring to just CapEx or CapEx and total expenses? And then on the comments around stabilization in Cloud, is this something that you just started to see in the September quarter? Or had you seen that starting earlier in the year? And if you just started seeing in the September quarter, would you have any thoughts on why you would have seen it like Google Cloud would have seen it maybe later than some of the other hyperscalers? Thank you.

Ruth Porat: So I think what you’re referring to is my CapEx comment. I was trying to make the point that we are committed to meaningfully investing in CapEx, given all the opportunities we see. We do continue to expect elevated levels of investment in our technical infrastructure. It it will be increasing in the fourth quarter and talked about some of the difference in timing, muted timing in the third quarter due to the timing of supplier payments and then try to make it clear that we will continue to grow CapEx in 2024 or more specifically to your question, 2024 aggregate CapEx will be above the full year 2023. So that was the main one. And then as it relates to Cloud, as Sundar said, what we’re really excited about is the revenue growth does reflect healthy customer adoption across the portfolio, and that’s infrastructure, data analytics, security.

And so we’re — I can’t comment on others, but we feel good about where we’re sitting here and looking forward, and we’ll let you do the forecasting. DCP growth in the third quarter was above the growth rate for Cloud overall, and we feel really good about the work that they’re doing there. And then, of course, in addition to that is all of the contribution from Google Workspace.

Mark Mahaney: Thank you.

Operator: 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 in our fourth quarter 2023 call. Thank you, and have a good evening.

Operator: Thank you, everyone. This concludes today’s conference call. Thank you for participating. You may now disconnect.

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