What drove GOOG's revenue surprises in 2024?

Alphabet Inc.'s (GOOG) revenue surprises in 2024 can be attributed to several key factors:

1. **Google Services**: Alphabet's core business, Google Services, which includes advertising and non-advertising revenue from Google Cloud, YouTube, and Google Play, contributed significantly to the overall revenue growth. Google Services revenue increased by 10% year-over-year to $84.1 billion in Q4 2024.
2. **Google Cloud**: The Google Cloud segment experienced a substantial growth of 30% year-over-year, with revenue reaching $12.0 billion. This growth was driven by strong demand for AI infrastructure and generative AI solutions.
3. **AI Investments**: Alphabet's strategic investments in AI have powered ad sales and overall revenue growth. The company's AI-powered features, such as AI Overviews in Search, have increased user engagement and contributed to the growth in advertising revenue.
4. **Advertising Revenue**: Alphabet's advertising revenue grew by 10.6% year-over-year to $72.461 billion, outperforming market expectations. This growth was driven by strong performance across Google's platforms, including YouTube and Google Search.
5. **International Performance**: Alphabet's international revenue grew by 26% year-over-year, reflecting the company's expanding global presence and increasing international demand for its services.

In summary, Alphabet's revenue growth in 2024 was driven by robust performance across its core business segments, particularly Google Services and Google Cloud, coupled with strategic investments in AI and strong international performance.