Q3 FY2023 Earnings Call
GOOGL · Preprocessing Report
2023-10-24
Quality
100%
44
Turns
13
Speakers
5
Sections
8
Exchanges
474
Claims

Entities by group 73

company executives 2
GooglecompanyAlphabetcompany
c-suite executives 2
Ruth PoratpersonPhilipp Schindlerperson
google ads solutions 1
Performance Maxproduct
sell-side analysts 3
Doug AnmuthpersonBrian NowakpersonEric Sheridanperson
subscription media sports 1
Sunday Ticketproduct
earnings call analysts 4
Michael NathansonpersonMark MahaneypersonJustin PostpersonKen Gawrelskiperson
generative ai model family 1
Geminitechnology
ai productivity assistants 1
Duetproduct
generative ai assistant 1
Bardproduct
online advertising campaigns 1
Demand Genproduct
privacy platform 1
Privacy Sandboxtechnology
pixel phones 3
Pixel 8productPixel 6aproductPixel 7aproduct
mobile operating system 1
Androidtechnology
ai personal assistant 1
Assistant with Bardproduct
enterprise customers 3
Deutsche BankcompanyBTcompanyCoverMyMedscompany
advertisers 3
UnilevercompanyWarner MusiccompanyToyotacompany
consumer laptops 1
Chromebookproduct
autonomous ride-hailing service 1
Waymoproduct
generative content creation tools 1
Product Studioproduct
ai content creation tools 1
Dreamscreenproduct
ai research customers 2
AI21 LabscompanyElemental Cognitioncompany
retail customers 2
AritziacompanyGymsharkcompany
budgeting & planning tools 2
OptiScoreproductPerformance Plannerproduct
content intelligence products 1
Spotlight Momentsproduct
mobile operating systems 1
iOStechnology
content watermarking 1
SynthIDtechnology
cloud virtual machines 1
A3 VMsproduct
cloud accelerators 1
Cloud TPU v5eproduct
email and collaboration 1
Gmailproduct
consumer brand customers 1
Grupo Boticariocompany
security operations software 1
Chronicle Security Operationsproduct
pixel watches 1
Pixel Watch 2product
drone delivery service 1
Wingproduct
marketing planning tools 1
Cyber-Fivetechnology
advertising AI tools 1
ads AI essentialsproduct
ad measurement privacy 1
Consent Modetechnology
cloud ecosystems 1
Amazoncompany
cloud data processing 1
DCPtechnology
Ungrouped 19
Sundar PichaipersonYouTubecompanyNFLcompanyLloyd WalmsleypersonMade on YouTubeeventGMLeventMade by GoogleeventRytrcompanyNVIDIAcompanyHighmark HealthcompanyPayPalcompanyMandiant Threat IntelligencecompanySecurity Command CenterproductJack Henry & AssociatescompanyWalmartcompanyNielsencompanySamsungcompanyIRScompanyLiving Roomproduct
REPORTING 114PROJECTING 26POSITIONING 197EXPLANATORY 33ANALYST 42

Topics 98

search×36youtube×32advertising×29artificial intelligence×28cloud×22sunday ticket×12performance×11revenue×10gemini×10expense×9capex×9cost×8duet ai×7shorts×6infrastructure×6vertex×6privacy sandbox×6product×5bard×5campaign×5

Themes 277

ai×33generative×14growth×11revenue×10operating×8ai-driven×5demand gen×5investment×4performance×4middle east×4nfl sunday ticket×3cost efficiency×3launch×3free×3other×3youtube×3cloud growth×2feature expansion×2search experience×2creativity and productivity×2efficiency×2monetization×2workspace productivity×2product integration×2services×2search and other×2retail-led growth×2holiday season×2consolidated results×2sales and marketing×2tax deferral×2customer optimization×2technical infrastructure×2elevated×2user feedback×2rollout×2experience building×2stabilization×2roi×2advertising demand×2advertiser spending stabilization×2q3 fy2023×2user experience×2third-party phaseout×2information discovery×225-year anniversary×1future opportunities×1continued momentum×1four focus areas×1knowledge and learning focus×1user testing×1debugging and understanding×1content discovery×1search interface and experiment×1app integration×1workspace and travel information×1google it improvement×1search and response evaluation×1bard integration×1bard capabilities×1multimodal interaction×1user opt-in×1collaborative tools traction×1developer and business platform×1responsible deployment×1ai-generated identification×1invisible ai image tagging×1foundational ai×1work rollout×1ads and subscriptions momentum×1multiview streaming×1nfl partnerships×1execution at scale×1daily views×1monthly viewership×1creator tools×1mobile editing app×1enterprise adoption×1product innovation×1ai-optimized×1customer adoption×1option breadth×1nvidia h100 gpu×1application development×1models×1tools×1customers×1productivity×1cloud integration×1developer productivity×1business insights×1data analysis×1data analytics platform×1adoption×1paying base growth×1enterprise examples×1workflow efficiency×1competitive differentiation×1customer base×1strategy×1brand growth×1unit growth×1chip generation×1phone performance×1best shot and audio cleanup×1ecosystem platform×1accessibility update×1new category launch×1software support×1ride-hailing expansion×1waitlist growth×1city expansion×1drone delivery partnership×1long-term growth opportunities×1advertising mix×1driver of growth×1company discussion×1product updates×1new formats×1customer journey×1core business×1strong quarter×1retail roi×1retailer preparation×1price and convenience expectations×1holiday shopping demand×1holiday promotions and fulfillment×1shopping deals expansion×1deal browsing×1omnichannel retail×1apparel shopping×1higher engagement×1pilot feedback×1seasonal content creation×1shift to×1creator success and multi-format strategy×1shorts ctv and subscriptions investment×1engagement and monetization momentum×1streaming leadership×1ctv audience×1content variety×1creation and storytelling×1creation tools×1brand performance×1video reach×1view growth×1partner collaboration×1us launch×1curated news licensing program×1publisher reach×1international availability×1open access×1year-over-year guidance×1data center×1asset lives×1r&d compensation×1g&a legal matters×1net×1effective rate×1balance sheet×1payment×1brand and direct response×1network×1traffic acquisition×1profitability×1search and youtube×1google play×1hardware headwind×1gcp and workspace×1profitable×1base reengineering×1workstreams×1reallocation×1footprint optimization×1accelerated rent and depreciation×1engineering workstreams×1spend efficiency×1portfolio focus×1hardware costs and youtube acquisition×1supplier payment timing×1sustainable financial value×1reengineering×1faster growth than expenses×1work streams driving investment plan×1platform shift×1transition×1search and assistant evolution×1management focus×1differentiation×1multimodal capabilities×1optimizations×1workload starting×1earnings call opening×1model progress×1next-generation launch×1innovation pace×1multimodal ai model×1tool and api integration×1model scaling×1product rollout×1model iteration×1spend optimization×1optimization pressure×1interest×1project growth×1outlook×1advertising industry reshape×1brand advertising headwinds×1brand advertising recovery×1ai-powered campaign×1conversion efficiency×1account controls×1product update×1asset creation flow×1product watch×1product features×1product progress×1market uncertainty×1product reception×1advertiser adoption×1ai-powered product adoption×1data and measurement tools×1living room and shorts performance×1retail strength in apac×1sg e rollout×1model efficiency×1scaling efficiency×1optimization and capital intensity×1product refinement×1product trajectory×1desktop to ai×1organic search and advertising×1technology cost×125-year milestone×1technology generations×1technology transitions×1use case selection×1leadership in models and infrastructure×1sports programming×1strategic objectives×1sports strategy×1navigation experience×1multi-view and latency experience×1multi-view game selection×1multi-view rollout×1first season execution×1q4 questions×1margin impact×1subscription revenues×1customer acquisition cost×1deal return×1partner feedback and reliability×1partnership execution×1early testing feedback×1advertiser feedback from testing×1product search example×1direct navigation×1multiple paths×1user intent capture×1use case expansion×1developer testing×1availability×1ad testing×1cookie-less future×1privacy-preserving signals and ai optimization testing×1third-party deprecation in chrome×1real-world experiments without third-party cookies×1ecosystem engagement×1privacy-focused technology collaboration×1scope of spending×1earlier stabilization×1timing of stabilization×1clarification×1guidance×1healthy customer adoption across infrastructure, data analytics and security×1forward position and outlook×1additional growth alongside cloud×1

Key Metrics 72

revenue×28revenue growth×7users×5capex×5customers×4free cash flow×4capital expenditures×4cost of revenues×3operating income×3operating margin×3capital expenditure×3units sold×2roi×2views×2operating expenses×2cost base×2sales and marketing expense×2expenses×2expense×2capital intensity×2growth×2adoption×1daily views×1active generative ai projects×1time×1riders×1waitlist×1advertiser performance×1queries×1percentage×1number of deals×1engagement rate×1watch time×1subscription growth×1viewers×1reach×1publications×1countries×1depreciation expense×1r&d expenses×1g&a expenses×1sales and marketing expenses×1other income and expense×1net income×1tax rate×1cash and marketable securities×1tax payment×1traffic acquisition cost×1operating loss×1buyers×1headcount×1talent×1expense growth×1accelerated rent and depreciation×1cost of sales×1cash capex×1return on capital×1conversion rate×1projects×1conversions×1adoption rate×1advertiser spending×1user base×1monetization×1model size×1cost×1efficiency×1costs×1margins×1cac×1user intent×1use cases×1

Entities 819

Google×375Sundar Pichai×108Ruth Porat×63YouTube×58Philipp Schindler×37Performance Max×15Sunday Ticket×12Gemini×10NFL×9Duet×8Lloyd Walmsley×7Bard×6Demand Gen×6Doug Anmuth×6Privacy Sandbox×6Alphabet×5Android×4Brian Nowak×4Eric Sheridan×4Michael Nathanson×4Mark Mahaney×4Assistant with Bard×3Pixel 8×3Chromebook×3Waymo×3Product Studio×3Justin Post×3Made on YouTube×2Dreamscreen×2GML×2Spotlight Moments×2Made by Google×1iOS×1SynthID×1AI21 Labs×1Elemental Cognition×1Rytr×1A3 VMs×1NVIDIA×1Cloud TPU v5e×1Highmark Health×1PayPal×1Deutsche Bank×1Aritzia×1Gymshark×1Gmail×1Grupo Boticario×1Unilever×1Warner Music×1Mandiant Threat Intelligence×1Chronicle Security Operations×1Security Command Center×1BT×1Jack Henry & Associates×1CoverMyMeds×1Pixel Watch 2×1Wing×1Walmart×1OptiScore×1Performance Planner×1Cyber-Five×1Nielsen×1Samsung×1Toyota×1IRS×1Pixel 6a×1Pixel 7a×1ads AI essentials×1Consent Mode×1Living Room×1Ken Gawrelski×1Amazon×1DCP×1

Business Segments 291

Google Services×222Google Cloud×63Other Bets×6

Sectors 395

advertising×81artificial intelligence×73cloud computing×53search engine×30consumer internet×29video streaming×29retail×19media and entertainment×12semiconductor×8cybersecurity×7enterprise software×6subscription services×6mobile operating system×4television×4online news×4smartphone×3ride hailing×3autonomous vehicles×3sports media×2apparel×2real estate×2privacy technology×2digital assistant×2web browser×2education technology×1mobile application×1healthcare×1financial services×1wearables×1personal computing×1drone delivery×1data center×1data analytics×1

Regions 14

Middle East×4San Francisco×2US×2India×1Japan×1Austin×1Dallas-Fort Worth×1worldwide×1APAC×1

Metadata Distributions

Sentiment
positive 198negative 16neutral 198
Temporality
backward 116forward 62current 234
Certainty
definitive 89confident 149moderate 123tentative 49speculative 2
Magnitude
major 48moderate 241minor 123
Direction
improvement 34decline 5flat 1mixed 1none 371
Time Horizon
immediate 100near_term 155medium_term 35long_term 14unspecified 108
Verifiability
quantitative 85event 42qualitative 285
Analyst Intent
probing 18confirming 3seeking_detail 21

Speakers

Executives
PSPhilipp SchindlerexecutiveRPRuth PoratCFOSPSundar PichaiCEO
Analysts
BNBrian NowakanalystDADoug AnmuthanalystESEric SheridananalystJPJustin PostanalystKGKen GawrelskianalystLWLloyd WalmsleyanalystMMMark MahaneyanalystMNMichael Nathansonanalyst
Other
JFJim FriedlandirOPOperatoroperator

Sections

TypeLabelSpeaker
preamblePreambleJim Friedland
prepared_remarksPrepared RemarksSundar Pichai, Ruth Porat, Philipp Schindler
qa_sessionQ&A Session
closing_remarksClosing RemarksJim Friedland
operator_signoffOperator Sign-offOperator

Q&A Exchanges 8

#AnalystFirmTurns
1
BNBrian Nowak
Morgan Stanley6
2
DADoug Anmuth
JPMorgan4
3
ESEric Sheridan
Goldman Sachs5
4
LWLloyd Walmsley
UBS4
5
MNMichael Nathanson
MoffettNathanson4
6
JPJustin Post
Bank of America4
7
KGKen Gawrelski
Wells Fargo5
8
MMMark Mahaney
Evercore4

Claim Taxonomy 412

REPORTING114
resultFinancial outcome for a completed period54
metricNon-financial quantitative fact25
operationalDiscrete completed event35
PROJECTING26
guidanceQuantitative expectation with number + time9
commitmentPromise with binary verifiable outcome16
targetLong-term aspirational quantitative goal1
POSITIONING197
strategyPriority, direction, or initiative174
competitiveCompany's position or advantages9
opportunityMarket condition framed as growth driver11
riskHeadwind, constraint, or uncertainty3
EXPLANATORY33
attributionWhy a specific outcome happened8
contextNon-company macro/industry fact25
FRAMING0
thesisFalsifiable belief about how the world works0
ANALYST42
questionInterrogative seeking information30
observationRestates a fact or data point11
concernFlags a risk or challenge0
estimateAnalyst's own projection or calculation1
sentimentOpinion, praise, or critique0

Transcript

Preamble
OP
Operatoroperator
Welcome, everyone. Thank you for standing by for the Alphabet Third Quarter 2023 Earnings Conference Call. At this time, all participants are in listen-only mode. After the speaker presentation, there will be a question-and-answer session. [Operator Instructions] I would now like to hand the conference over to your speaker today, Jim Friedland, Director of Investor Relations. Please go ahead.
JF
Jim FriedlandirAlphabet
Thank you. Good afternoon, everyone, and welcome to Alphabet's third quarter 2023 earnings conference call. With us today are Sundar Pichai, Philipp Schindler and Ruth Porat. Now, I'll quickly cover the safe harbor. 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. Actual results could differ materially. Please refer to our Form 10-K, including our Risk Factor section and our Form 10-Qs. We undertake no obligation to update any forward-looking statement.
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 abc.xyz/investor. Our comments will be on year-over-year comparisons unless we state otherwise. And now, I'll turn the call over to Sundar.
Prepared Remarks
SP
Sundar PichaiCEOAlphabet
Thank you, Jim, and hello, everyone.
I'm pleased with our business results this quarter, which demonstrates strong growth in Search and YouTube and momentum in Cloud. Google turned 25 in September, which offered an opportunity to reflect on our progress over the last quarter century and to look ahead to the opportunities enabled by AI we are so excited and confident about. Our product momentum continued this quarter, as you saw with Cloud Next, Made on YouTube and Made by Google. It's all part of our focus on making AI more helpful for everyone, and we are making good progress across the four areas that we shared last quarter.
First, improving knowledge and learning. This includes our work with the Search Generative Experience, which is our experiment to bring Generative AI capabilities into Search. We have learned a lot from people trying it, and we have added new capabilities, like incorporating videos and images into responses and generating imagery. We've also made it easier to understand and debug generated code. Direct user feedback has been positive with strong growth and adoption. In August, we opened up availability to India and Japan with more countries and languages to come.
As we add features and expand into new markets, we are engaging with the broader ecosystem and will continue to prioritize approaches that add value for our users, send valuable traffic to publishers, and support a healthy open Internet. With Generative AI applied to Search, we can serve a wider range of information needs and answer new types of questions, including those that benefit from multiple perspectives. We are surfacing more links with SGE and linking to a wider range of sources on the results page, creating new opportunities for content to be discovered. Of course, ads will continue to play an important role in this new Search experience. People are finding ads helpful here as they provide useful options to take action and connect with businesses. We'll experiment with new formats native to SGE that use Generative AI to create relevant high-quality ads customized to every step of the Search journey. The second area we are focused on is boosting creativity and productivity. Bard is particularly helpful here. It's a direct interface to a conversational LLM, and we think of it as an early experiment and complementary experience to Google Search. Bard can now integrate with Google apps and services, showing relevant information from Workspace, Maps, YouTube, and Google Flights and Hotels. We've also improved the Google it feature. It provides other sources to help people evaluate Bard's responses and explore information across the web. Earlier this month, we announced Assistant with Bard, a personal assistant powered by Generative AI. It combines Bard's generative and reasoning capabilities with Assistant's personalized help. You can interact with it through text, voice, or images, and in the coming months, you'll be able to opt in on Android and iOS mobile devices. Our collaborative tools in Workspace and YouTube are also part of how we boost creativity and productivity, and they are seeing great initial traction. Third, we are enabling developers, businesses, and other organizations to build their own transformative products and services. For example, thousands of customers and partners are already using Google Cloud to capture the potential of AI and we'll share more there in a minute. And fourth, we are building and deploying AI responsibly, so that everyone can benefit. One area we are focused on is making sure people can more easily identify when they are encountering AI-generated content online. Using new technology powered by Google DeepMind SynthID, images generated by Vertex AI can be watermarked in a way that is invisible to the human eye without reducing the image quality. Underlying all this work is the foundational research done by our teams at Google DeepMind and Google Research. We are excited to roll out more of what they've been working on soon. As we expand access to our new AI services, we continue to make meaningful investments in support of our AI efforts. We remain committed to durably re-engineering our cost base in order to help create capacity for these investments in support of long-term sustainable financial value. Across Alphabet, teams are looking at ways to operate as effectively as possible focused on their biggest priorities. Turning next to YouTube, which saw solid momentum in both its ads and subscription businesses in Q3.
NFL Sunday Ticket is now live and receiving excellent reviews. Fans love our multi-view feature, which can live stream up to four games on a single screen. We've heard positive feedback from our partners at the NFL about the new features and live stream reliability. This is a clear example of our ability to execute big partnerships with excellence and at scale.
I'm really pleased with the growth and engagement on YouTube Shorts. We continue to work on closing the monetization gap here. Shorts now average over 70 billion daily views and are watched by over 2 billion signed-in users every month. At Made on YouTube in September, we announced new tools that make it easier to create engaging content. Dreamscreen is an experimental feature that allows creators to add AI-generated video or image backgrounds to shorts. And YouTube Create is a new mobile app with a suite of production tools for editing shorts, longer videos, or both.
Next, Google Cloud. We see continued growth with Q3 revenue of $8.4 billion, up 22%. Today, more than 60% of the world's 1,000 largest companies are Google Cloud customers. At Cloud Next, we showcased amazing innovations across our entire portfolio of infrastructure, data and AI, workspace collaboration, and cybersecurity solutions. We offer advanced AI-optimized infrastructure to train and serve models at scale. And today, more than half of all funded Generative AI startups are Google Cloud customers.
This includes AI21 Labs, Contextual, Elemental Cognition, Rytr, and more. We continue to provide the widest choice of accelerator options. Our A3 VMs powered by NVIDIA's H100 GPU are generally available, and we are winning customers with Cloud TPU v5e, our most cost efficient and versatile accelerator to date.
On top of our infrastructure, our Vertex AI platform helps customers build, deploy, and scale AI-powered applications. We offer more than 100 models, including popular third-party and open source models, as well as tools to quickly build, search, and conversation use cases. From Q2 to Q3, the number of active Generative AI projects on Vertex AI grew by 7x, including Highmark Health, which is creating more personalized member materials. Duet AI was created using Google's leading large foundation models and especially trained to help users to be more productive on Google Cloud. We continue expanding its capabilities and integrating it across a wide range of cloud products and services. With Duet AI, we are helping leading brands like PayPal and Deutsche Bank boost developer productivity. And we are enabling retailers like Aritzia and Gymshark to gain new insights for better and faster business results. In fact, companies are increasingly using AI for the purpose of analyzing data. And customers are choosing Google Cloud because we are the only large cloud provider with a unified platform to analyze structured and unstructured data. In Workspace, thousands of companies and more than a million trusted testers have used Duet AI. They are writing and refining content in Gmail and Docs, creating original images from text within slides, organizing data in Sheets and more. These innovations enable us to provide new services and grow our base of 10 million paying customers, including enterprises like Grupo Boticario, Unilever and Warner Music. We also integrated Duvet AI across our cybersecurity portfolio to differentiate in the marketplace, providing Generative AI-powered assistance in Mandiant Threat Intelligence, Chronicle Security Operations, and Security Command Center. This reduces the time security teams spend writing, running, and refining searches by seven times. We are the only leading security provider that combines frontline intelligence and expertise, a modern security operations platform, and a trusted cloud foundation, all infused with Generative AI, helping protect customers and partners like BT, Jack Henry & Associates, and CoverMyMeds.
Turning to hardware. We unveiled our new products this month. We introduced our new Pixel 8, Pixel 8 Pro, and Pixel Watch 2 to very positive consumer feedback and reviews. Pixel is the fastest growing smartphone brand in our top markets and the only one that grew in units sold year-over-year.
Our portfolio of Pixel products are brought to life, thanks to our combination of foundational technologies, AI, Android, and Google Tensor. Google Tensor G3 is the third generation of our tailor-built chip. It's designed to power transformative experiences by bringing the latest in Google AI research directly to our newest phones. A new AI-powered editing features in Google Photos on Pixel 8 and Pixel 8 Pro remove distractions, generate the best shot from multiple images and reduce distracting sounds in videos. Pixel and our third-party ecosystem are powered by Android. We just released Android 14 with more accessibility features. I also want to mention Chromebook Plus, a new category which provides the best of Chrome on great hardware with built-in Google Apps and powerful AI capabilities.
We also shared that Chromebooks will now get regular automatic updates for 10 years, more than any other operating system. In Other Bets, Waymo is onboarding more riders to its commercial ride hailing service as it gradually adds over 100,000 people from its San Francisco waitlist. Austin will follow as its next ride hail city. Wing and Walmart announced a new partnership to provide drone delivery service in the Dallas-Fort Worth area. Before handing over to Philipp, I want to thank our employees around the world who are working to create innovative products and provide great services to people and businesses who use our products. Philipp?
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PS
Philipp SchindlerexecutiveAlphabet
Thanks, Sundar, and hi, everyone. I'll start with our performance for the quarter and then give color into the three key priority areas for ads. Google AI, Retail and YouTube that we've identified on past calls as opportunities for long-term growth in advertising.
Google Services revenues of $68 billion were up 11% year-on-year. In Google Advertising, Search and Other, revenues grew 11% year-on-year, led by solid growth in the Retail vertical. In YouTube Ads, revenues were up 12% year-on-year, driven by growth in both brand and direct response. In Network, revenues declined 3% year-on-year. Google Other revenues were up 21% year-on-year, led by strong growth in YouTube subscription revenues.
Let's start with Google AI. Recent dramatic advances in everything from foundational research models to LLM to Generative AI are improving our ability to deliver better performance and profitability for advertisers and more helpful, delightful experiences for users. We covered many innovations last quarter after GML, like our conversational experience in Google Ads, significant updates to Performance Max and new campaign types like Demand Gen. And as Sundar said, we're continuing to experiment with new ad formats on SGE. It's extremely important to us that in this new experience, advertisers still have the opportunity to reach potential customers along their Search journeys. I'll highlight more ways we're innovating with the best of Google AI as we double-click into our core business. In Retail, we had a great quarter. In a market where every dollar counts, our proven AI-powered solutions like Search and PMax are helping retailers drive reliable, strong ROI and meet customers wherever they are across the funnel. In Q3, we also started prepping retailers for what will be a long holiday season. Let me share some things. Number one, with a maximum number of days between Thanksgiving and Christmas and expectations for many micro peaks beyond Cyber-Five, we're arming businesses with insights and planning tools, including OptiScore and Performance Planner to uncover new opportunities, plan budgets and targets to stay competitive and be smarter with their inventory and pricing strategy. Number two. Consumer expectations are shifting, especially around price and convenience. We've seen 4x deals queries during the holidays versus other periods. 75% of users say they'll shop with those offering free shipping. Retailers are capitalizing on these trends with our differentiated merchant offerings like merchant promotions and fulfillment options. And we're making improvements to significantly boost the number of deals shown to shoppers in Search this holiday season. Look out for more in the coming days about new ways we'll help shoppers browse deals across the web this year. Number three. No surprise, omni-channel is the way to succeed. With our suite of omni product solutions, including local inventory ads, omnibidding, and PMax for store goals, retailers big and small, are capturing demand and incremental store budgets while engaging with high value customers. Innovation continues across our shopping and merchant experiences powered by Google AI. Our virtual try-on tool for apparel launched in June and has been a hit with consumers and brands. Users engage with virtual try-on images at a higher rate versus regular brand provided images. Product Studio is another launch from GML getting positive feedback in pilot mode. It uses the best of Gen.AI to help businesses create unique and tailored imagery for free that they can then scale across their channels. We're seeing early merchant testers using it to seasonalize their content for the holidays. Let's shift to YouTube. It's worth repeating, our intense focus on creator success coupled with our multi-format strategy are at the center of how we think about YouTube's long-term growth. Shorts, connected TV and our subscription offerings are key drivers here and we're investing across each to solidify YouTube's position as the best place to create, the best place to watch and the best place to deliver results. Sundar mentioned watch time and engagement momentum on shorts as well as our monetization progress. He also covered subscription growth and NFL Sunday Ticket. As for connected TV, we continue to be the number one overall streaming destination according to Nielsen. 150 million plus people are watching YouTube on CTV screens every month in the US. Whether it's music videos, NFL Sunday Ticket, free movies, shorts, a continuous stream of MrBeast or some other creator-led content, viewers want choice and variety, and we're giving it to them all in one place. And to help creators and advertisers connect with these billions of viewers across moments, screens, and formats, we're bringing Google AI to awesome new creation tools and ad solutions. AI will do wonders for creation and storytelling. From Dreamscreen and YouTube Create, which Sundar talked about, to features that audit up content in multiple languages, flip and trim existing assets, remix and clip videos, and more, we're just getting started. We're also helping brands break through at speed and scale across the funnel to drive results. Spotlight Moments launched last week. It uses AI to identify trending content around major cultural moments for brand sponsorship opportunities. There's video reach campaigns, which are expanding to in-feed and shorts and will be generally available in November. AI is helping advertisers find as many people as possible in their ideal audience for the lowest possible price. Early tests are delivering 54% more reach at 42% lower cost. And then with video view campaigns, AI is serving skippable ads across in-stream, in-feed, and shorts and helping advertisers earn the maximum number of views at the lowest possible cost. So far, they're driving 40% more views on average versus in-stream alone. Then for YouTube and other feed-based services, there's our new Demand Gen campaign, which launched in April, rolled out worldwide last week, and was designed for the needs of today's social marketers to engage people as they stream, scroll and connect. It combines video and image ads in one campaign with access to 3 billion users across YouTube and Google, and the ability to optimize and measure across the funnel using Google AI. Demand Gen is already driving success for brands like Samsung and Toyota.
Before I wrap, one quick highlight on our close collaboration and commitment to our most important ecosystems and partners. In July, we launched Google News Showcase in the US, our curated online news experience and licensing program with more than 150 news publications, 90% of which are local or regional. Globally, over 2,500 news publications have signed onto News Showcase, and the product is live in 23 countries today. Our commitment to open access to news and information remains strong. With that, I'll end with a thank you to our customers and partners around the world for their continued trust and collaboration, and our Googlers everywhere for their incredible hard work and dedication. Ruth, over to you.
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RP
Ruth PoratCFOAlphabet
Thank you, Philipp. We are very pleased with our financial results for the third quarter, driven by meaningful growth in Search and YouTube and momentum in Cloud. My comments will be on year-over-year comparisons for the third quarter, unless I state otherwise. I will start with results at the Alphabet level followed by segment results and conclude with our outlook. For the third quarter, our consolidated revenues were $76.7 billion, up 11% in both reported and constant currency.
Search remained the largest contributor to revenue growth. In terms of expenses, total cost of revenues was $33.2 billion, up 7%, primarily reflecting other cost of revenues of $20.6 billion, which was up 6%. Growth here was primarily driven by content acquisition costs mainly for YouTube subscription offerings. As noted in our earnings release, the overall increase in data center and other operations costs was partially offset by a reduction in depreciation expense due to the change in estimated useful lives we made starting in the first quarter of the year. Operating expenses were $22.1 billion, up 6% reflecting the following. First, an increase in R&D expenses, driven primarily by compensation. Second, an increase in G&A expenses, reflecting the impact of charges related to legal matters. And finally, sales and marketing expenses, which were relatively flat to last year.
Operating income was $21.3 billion, up 25%, and our operating margin was 28%. Other income and expense was a loss of $146 million. Net income was $19.7 billion.
This reflects an effective tax rate of 7% in the third quarter from an IRS change related to the use of foreign tax credits, which had an outsized impact on the third quarter rate because the change resulted in a catch-up for prior periods. We delivered free cash flow of $22.6 billion in the third quarter and $78 million for the trailing 12 months. We ended the quarter with $120 billion in cash and marketable securities. As a reminder, our cash balance and free cash flow in the second and third quarters benefited from the deferral of certain tax payments to the fourth quarter of 2023. As noted in our earnings release, on October 16, we made an estimated tax payment of $10.5 billion related to this deferral, which will be reflected in our cash balance and free cash flow in the fourth quarter. Turning to segment results. Within Google Services, revenues were $68 billion, up 11%.
Google Search and other advertising revenues of $44 billion in the quarter were up 11%, led again by growth in retail. YouTube advertising revenues of $8 billion were up 12%, driven by both brand advertising and direct response. Network advertising revenues of $7.7 billion were down 3%. Other revenues were $8.3 billion, up 21%, primarily reflecting growth in YouTube non-advertising revenues driven by subscriber growth in YouTube TV followed by YouTube Music Premium.
TAC was $12.6 billion, up 7%. Google Services operating income was $23.9 billion, up 27% and the operating margin was 35%. Turning to the Google Cloud segment.
Revenues were $8.4 billion for the quarter, up 22%. GCP revenue growth remained strong across geographies, industries and products, although the Q3 year-on-year growth rate reflects the impact of customer optimization efforts. Google Workspace also delivered strong revenue growth, primarily driven by increases in average revenue per seat. Google Cloud had operating income of $266 million, and the operating margin was 3%. As to our Other Bets, for the third quarter, revenues were $297 million and the operating loss was $1.2 billion.
Turning to our outlook for the business. With respect to Google Services. First, within advertising. After a period of historic volatility, we were pleased with the year-on-year revenue growth of Search and YouTube advertising in the third quarter. Second, within other revenues, in our YouTube subscription products the substantial growth in revenues primarily reflects subscriber growth. Looking ahead, a full quarter of NFL Sunday Ticket revenues as well as associated content acquisition costs will be reflected in Q4 results compared to only a few weeks in the third quarter. Play had growth in the third quarter, driven primarily by an increase in the number of buyers. With respect to hardware, there is a headwind to revenues in the fourth quarter, reflecting efforts to optimize the portfolio with tighter targeting of our go-to-market investments as well as the ongoing impact from the difference in launch timing for the Pixel 6a and 7a that we mentioned last quarter.
Turning to Google Cloud. We are pleased with the ongoing customer engagement with GCP and Workspace and the potential benefit of our AI solutions including infrastructure and services such as Vertex AI and Duet. We continue to invest aggressively given the significant potential we see while remaining focused on profitable growth. In terms of expenses and profitability, we're pleased with our operating performance. As we have repeatedly stressed, we remain focused on durably reengineering our cost base to create investment capacity to support our growth priorities, most important of which is with AI. We have a number of workstreams in place. First, we are maintaining a slower pace of headcount growth, reflecting product prioritization and reallocation of talent to support our most important growth opportunities. Second, we remain focused on optimizing our real estate footprint, including how and where we work to reduce our expense growth. As you can see from our earnings release, we incurred $207 million in accelerated rent and depreciation in the third quarter related to these actions. Third, we have engineering work streams underway to improve productivity across Alphabet. Given the magnitude of investment in our technical infrastructure, we have a superb team focused on efficiency of our operations there. We are also making progress in streamlining operations across Alphabet through the use of AI. Finally, there are ongoing workstreams that are improving the efficiency of our spend with suppliers and vendors through our central procurement organization. And to be clear, across the portfolio of other bet companies, we have also been working to identify opportunities to create sharper focus and to operate more efficiently and effectively.
With respect to sequential quarter-on-quarter trends, two further points. First, cost of sales in the fourth quarter will reflect both higher hardware costs given Pixel family launches as well as increased CAC for YouTube as previously noted. Second, as usual, we expect sales and marketing expenses to be more heavily weighted to the end of the year, in part to support product launches in the holiday season. Finally, our reported CapEx in Q3 was $8 billion, driven overwhelmingly by investment in our technical infrastructure with the largest component for servers, followed by data centers, reflecting a meaningful increase in our investments in AI compute. The growth in reported cash CapEx in Q3 is somewhat muted due to the timing of supplier payments, which can cause variability from quarter-to-quarter. We continue to invest meaningfully in the technical infrastructure needed to support the opportunities we see in AI across Alphabet and expect elevated levels of investment, increasing in the fourth quarter of 2023 and continuing to grow in 2024.
In closing, we remain very excited about the opportunities ahead and committed to deliver sustainable financial value. Thank you. Sundar, Philipp and I will now take your questions.
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Q&A Session
Q&A 1/8
OP
Operatoroperator
[Operator Instructions] And our first question comes from Brian Nowak with Morgan Stanley. Your line is open.
BN
Brian NowakanalystMorgan Stanley
Great. Thanks for taking my question. I have two.
The first one, maybe a sort of a jump ball. There's somewhat of an investor debate about sort of the incremental return on capital to Search when it comes to AI. I know it's early, but are there any examples that you're seeing with SGE or Bard on higher utility, higher conversion rates, more engagement, just something to sort of show signal around the return that could come from these investments? And the second one, Ruth, I know you've spoken a lot about durably reengineering the cost base. I think in the past, you've talked about how expenses could grow slower than revenue in 2024. Is that sort of still the high-level way to think about it or is that potentially changing a bit as investments are continuing? Thanks.
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Sundar PichaiCEOAlphabet
Ruth, do you want to take the second part?
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Ruth PoratCFOAlphabet
Sure. Thanks for that, Brian. So overall, that's sort of a truism as you know well, that looking to grow revenues at a faster rate than expenses as we're focused on delivering sustainable financial value. And so that really takes us to the work streams, which I tried to tick through, again, those remain the driver. They're the real priority there — those are the efforts that are going to enable us to expense growth as moderated as possible while supporting the investment growth that is so exciting in front of us, in particular, around AI.
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SP
Sundar PichaiCEOAlphabet
And to your first part, obviously, we see AI as a foundational platform shift and are excited about the opportunities across our business. It starts with Search. And I've been pretty pleased with how the user feedback has been on SGE. We are rolling it out to more users. Through it all, we are making sure the product works well, and we are generating value for our ecosystem, and that adds transition as well.
And I think I view this is, with AI, the opportunity to evolve Search and Assistant over the next decade ahead. And I think as we've always seen, when you continue to invest and build great experiences, you can get value on the other side. And I do think over time, there will be newer pads, just like we have done on YouTube, I think with the AI work that are subscription models is a possible path as well. And obviously, all of the AI investments we are doing applies across Cloud, too, and I'm pretty optimistic about what's ahead there as well.
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Brian NowakanalystMorgan Stanley
Great. Thank you, both.
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Q&A 2/8
OP
Operatoroperator
Your next question comes from Doug Anmuth with JPMorgan. Your line is open.
DA
Doug AnmuthanalystJPMorgan
Thanks for taking the questions. One for Sundar and one for Ruth. Just, Sundar, you talked a lot about AI. I was hoping you could talk more about Gemini and how we'll differentiate from other models, some of the multimodal capabilities and what new experiences or agents do you think it could unlock and how we should think about timing? And then also just on Cloud, I hope you can talk about some of the factors there on the decel in Cloud and just what you're seeing in terms of optimizations? And is there any sign of new workload deployments taking place? Thanks.
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SP
Sundar PichaiCEOAlphabet
Thanks. Good questions. On Gemini, obviously, it's effort from our combined Google DeepMind team. I'm very excited at the progress there and as we're working through getting the model ready. To me, more importantly, we are just really laying the foundation of what I think of as the next generation series of models we'll be launching throughout 2024. The pace of innovation is extraordinarily impressive to see. We are creating it from the ground-up to be multimodal, highly efficient tool and API integrations and more importantly, laying the platform to enable future innovations as well.
And we are developing Gemini in a way that it is going to be available at various sizes and capabilities, and we'll be using it immediately across all our products internally as well as bringing it out to both developers and cloud customers through Vertex. So I view it as a journey and each generation is going to be better than the other, and we are definitely investing and the early results are very promising. On Cloud, maybe what I would say is, overall, we had definitely started seeing customers looking to optimize spend. We leaned into it to help customers given some of the challenges they were facing. And so that was a factor. But we are definitely seeing a lot of interest in AI. There are many, many projects underway now, just on Vertex alone, the number of projects grew over 7x. And so we see signs of stabilization, and I'm optimistic about what's ahead.
DA
Doug AnmuthanalystJPMorgan
Thank you, Sundar.
Q&A 3/8
OP
Operatoroperator
Your next question comes from Eric Sheridan with Goldman Sachs. Your line is now open.
ES
Eric SheridananalystGoldman Sachs
Thank you, sir, very much for taking the questions. Two, if I could. Sundar, you guys led over a year ago, starting with Performance Max. And I wanted to know if we could get your updated thoughts on how AI might impact the broader advertising industry and how you're aligning Alphabet in Google's goals with AI and where it might take the advertising industry in the years ahead? That would be the first question. And then about a year ago, Philipp and Ruth started talking about some of the brand advertising headwinds that YouTube was facing. As we start to lap those headwinds, how should we be thinking about a broad recovery in brand advertising versus elements of still headwinds that are being faced in the broader ad space, specifically with YouTube? Thank you.
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PS
Philipp SchindlerexecutiveAlphabet
So maybe I take the first one. We're very pleased with how Performance Max is performing. It gives advertisers really maximum performance across all inventory from, one, really AI-powered campaign, and it's probably the ultimate example of AI in action across our ads product. It's delivering excellent ROI. Those using it achieve like on average, over 18% more conversions at a similar cost per action. So since rolling it out about two years ago, we've continued to expand the features, give advertisers additional ways to steer how it works. There are a lot of things like account level, negative keywords, other details here. We launched new life cycle goals, customer life cycle goals, we call them revamped asset creation flow. That really helps business adapt and scale the most successful creatives. I think that's one to watch. We will also continue to build other new PMax features based on all the advertiser feedback we're seeing. So we're very, very encouraged by the progress here. Overall, maybe there was a second part to your question a bit on what we're hearing from the customers out there, look, driving ROI and efficiency is still top of mind for many, right? It's a rapidly shifting and still quite unpredictable consumer landscape out there. Our AI tools are very well received. AI, Gen AI are top of mind for everybody, really.
There's a ton of excitement, lots of questions about it. Many understand the value. Nearly 80% of our advertisers already use at least one AI-powered search ads product.
And yeah, we're hearing a lot of good feedback on, number one, our ads AI essentials, which are really helping to unlock the power of AI and set up for durable ROI growth on the advertiser side. This is — those are products like the foundation for data and measurement, things like Google Tag, Consent Mode and so on. And obviously, Search and PMax we talked about it and then all the Gen AI products, all those different ones. So there's a whole lot of interest in those products, yeah.
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Ruth PoratCFOAlphabet
And then on to your second question regarding YouTube, as we said, overall year-on-year growth in revenues was driven by both brand advertising and direct response. But very much to your question, yes, there was a stabilization in spending by advertisers. We're really pleased about that. We're particularly pleased about the ongoing performance in the Living Room and on Shorts. And as I said, that's both watch time growth and monetization I'd say the other thing benefiting YouTube is the retail strength we talked about with Search, retail strength in APAC in both Search and YouTube, and that really began in the second quarter, continued in the third quarter, but that was another contributor. So quite a number of things going on. I feel good about the results the team was able to deliver here.
ES
Eric SheridananalystGoldman Sachs
Thank you so much.
Q&A 4/8
OP
Operatoroperator
Your next question comes from Lloyd Walmsley with UBS. Your line is open.
LW
Lloyd WalmsleyanalystUBS
Great. Thanks for taking the question. Two, if I can, First, as we just think about the rollout of SGE across the user base, like how far along is that? And how do you balance the product rollout and consumer uptake versus monetization in that transition? And then the second one, also sort of Generative AI related.
How quickly are you guys finding new ways of optimizing whether that's shrinking model sizes, chip efficiencies or anything else? And do you think overall capital intensity of the business scales up or do you just find ways to do this more efficiently as usage scales? Anything you could share there would be great. Thanks.
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SP
Sundar PichaiCEOAlphabet
On the first part about SGE, we are still in a very — very early days in terms of how much we have rolled it out, but we have definitely gotten it out to enough people in both geographically across user segments and enough to know that the product is working well. It improves the experience and — but there are areas to improve, which we are fine tuning. Our true north here is getting at the right user experience we want to and pretty comfortable seeing the trajectory. And we've always worked through these transitions, be it from desktop to mobile, or from now mobile to an AI-enhanced experience. And so it's nothing new, and I feel very comfortable that as we go through it, the strength of our teams, both on the organic side as well as ad side to drive the right experience for users, including ads will pay dividends. So — and I think we'll continue to make improvements and make progress there. On your second question, at a high level, I would say, all through the — we just celebrated 25 years and of all the things I was proud about when I looked at the strength of the work we have done across our infrastructure as a company, our technical infrastructure as a company and various given stages at a given moment in time, when we adopted new generations of technology, we have looked at the cost of it. But then the curves, the efficiency curves we have driven on top of it has always been phenomenal to see. And I see the current moment is no different.
Already through this year, we are driving significant efficiencies, both in our models, in training costs and serving costs and our ability to adapt what's needed to the right use case. And so I think we'll do everything that is needed to make sure we have the leading AI models and infrastructure in the world, bar none, and will continue driving efficiencies from there.
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LW
Lloyd WalmsleyanalystUBS
Okay. Thank you.
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Q&A 5/8
OP
Operatoroperator
Your next question comes from Michael Nathanson with MoffettNathanson. Your line is now open.
MN
Michael NathansonanalystMoffettNathanson
Thank you. I'm going to ask you guys a multipart question on YouTube TV. So firstly, what were the broader objectives for getting Sunday Ticket? How does it perform versus those objectives? What lessons have you learned from having the NFL Sunday Ticket and how does that affect your appetite for more sports going forward? Thanks.
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PS
Philipp SchindlerexecutiveAlphabet
So, as Sundar said earlier, we're several weeks into our first season, and we're very pleased with how it's going, I think, in the broader context, you have to look at it as overall a YouTube subscription strategy. The great feedback we've gotten so far on the YouTube experience is very, very significant. People love the navigation. They love multi-view, they love the chats and the poles and frankly, people are very happy with the lack of latency here. The number one piece of concrete feedback the team has gotten is actually that people want the ability to pick their own games from multi-view which is — multi-view is the awesome feature, we started rolling out on YouTube TV that gives fans the ability to basically watch multiple streams here at once. And yeah, overall, the teams are working hard to build a fantastic experience, and we are really trying to stay focused on getting our first season right and providing the best possible experience really for fans here.
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Michael NathansonanalystMoffettNathanson
Thank you.
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Q&A 6/8
OP
Operatoroperator
Your next question comes from Justin Post with Bank of America. Your line is now open.
JP
Justin PostanalystBank of America
Great. Thanks. A couple of questions on Q4. Can you provide any color on if there's been any pause in advertising around the Middle East conflict in October, anything we should be aware of for Q4? And then second, when we do think about the Sunday Ticket impact, I know you can't give us revenues or expenses, but overall, would that be a headwind to margins in Q4 or something we should be thinking about? Thank you.
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RP
Ruth PoratCFOAlphabet
So, look, on your — on the first question, obviously, this is a tragic, tragic — there are no words to talk about what's going on. And all of our focus has been on supporting our people there and how our products can be as helpful as possible in this very painful time, broadly. And so nothing really to add. And then in terms of the second question, Sunday Ticket, the only thing I tried to call out there is that clearly, this is the first full quarter of Sunday Ticket that is contributing overall to the subscription revenues that we see. That's in part of other revenues also, obviously, is contributing to higher CAC in the fourth quarter. So try to make that really clear.
And as we look longer term, we expect to generate an attractive return over the life of the deal. We're continuing to invest in support of this and excited about the additional opportunities that come out of it, working with partners to deliver clips and other opportunities. As we've said, we've heard positive feedback from our partners at the NFL about the new features and live stream reliability. And this is really a clear example of our ability to execute big partnerships with excellence at scale and really leverage a lot of the extraordinary magic at YouTube and across Google, and that's what we're excited about.
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JP
Justin PostanalystBank of America
Great. Thank you.
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Q&A 7/8
OP
Operatoroperator
Your next question comes from Ken Gawrelski with Wells Fargo. Your line is now open.
KG
Ken GawrelskianalystWells Fargo
Thank you so much. Two questions, if I may. First, how do you think about the future — the future structure of AI-driven search capabilities? Will activity remain centralized in a Search bar or will it be decentralized and present in many different applications, including on third-party applications?
You alluded to Bard being integrated into multiple Google experiences early in the call. And then the second question is, any update on the Chrome cookie deprecation plan to begin in 1Q '24. What have you seen so far based on your early testing of privacy sandbox and what advertiser feedback have you received?
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SP
Sundar PichaiCEOAlphabet
On your first question, look, I broadly think of it as people are looking for information. They always look for it in many, many different ways. We've given the product search example. People can directly go to Amazon as an example or come to Google.
So if you zoom back and take an information view of the world, there's always been many different ways to get it. And part of our work we do in making Search be world-class and give users what they're looking for so that we can get it as much of that intent as possible. So I don't see that changing. With mobile, there were more ways people could get information, but we worked out to make Search work better in the mobile world. And similarly, a view with AI, there'll be many ways people get information, but it also offers us an opportunity in Search and in Assistant to take it to the next level and answer use cases, which we couldn't have done before and expand the diverse set of needs where we are sourced. So that's how I see the opportunity ahead.
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PS
Philipp SchindlerexecutiveAlphabet
And to the second part of your question, yes, Chrome still plans to begin phasing out third-party cookies in the second half of '24. In the last several months, Chrome has really made significant progress on the privacy sandbox with APIs for developer testing, and they're not generally available in Chrome. Our ads team is testing these APIs. And as we shared back in April, the preliminary results of our interspace ads testing showed that a combination of what we call privacy preserving signals and AI optimization actually provides positive results for businesses preparing for a cookie-less future. We also recently announced that in Q1 of '24, we plan to deprecate third-party cookies for 1% of Chrome users, and this will support developers, obviously, in conducting their real-world experiments to assess the readiness and effectiveness of their products in this — without third-party cookies. 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.
KG
Ken GawrelskianalystWells Fargo
Thank you.
Q&A 8/8
OP
Operatoroperator
And our last question comes from Mark Mahaney with Evercore. Your line is now open.
MM
Mark MahaneyanalystEvercore
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.
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RP
Ruth PoratCFOAlphabet
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.
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Mark MahaneyanalystEvercore
Thank you.
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Closing Remarks
OP
Operatoroperator
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.
JF
Jim FriedlandirAlphabet
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.
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Operator Sign-off
OP
Operatoroperator
Thank you, everyone. This concludes today's conference call. Thank you for participating. You may now disconnect.