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Alphabet (GOOGL 0.07%) 字母表 （ GOOGL 0.07%）
Q2 2024 Earnings Call 2024年第二季度财报电话会议
Jul 23, 2024, 4:30 p.m. ET
美国东部时间 2024 年 7 月 23 日下午 4：30
Contents: 内容：
- Prepared Remarks 准备好的讲话
- Questions and Answers 问题和答案
- Call Participants 通话参与者
Prepared Remarks: 准备好的发言：
Operator 算子
Welcome, everyone. Thank you for standing by for the Alphabet second quarter 2024 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session.
欢迎大家。感谢您出席 Alphabet 2024 年第二季度财报电话会议。此时，所有参与者都处于仅收听模式。演讲者介绍结束后，将进行问答环节。
[Operator instructions] I would now like to hand the conference over to your speaker today, Jim Friedland, director of investor relations. Please go ahead.
[操作说明]现在，我想把会议发言权交给今天的演讲者，投资者关系总监吉姆·弗里德兰（Jim Friedland）。请继续。
Jim Friedland -- Director, Investor Relations
吉姆·弗里德兰（Jim Friedland） -- 投资者关系总监
Thank you. Good afternoon, everyone, and welcome to Alphabet's second quarter 2024 earnings conference call. With us today are Sundar Pichai, Philipp Schindler, and Ruth Porat. Now I'll quickly cover the safe harbor.
谢谢。大家下午好，欢迎参加 Alphabet 2024 年第二季度财报电话会议。今天和我们在一起的是桑达尔·皮查伊、菲利普·辛德勒和露丝·波拉特。现在，我将快速介绍安全港。
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 Forms 10-K and 10-Q, including the risk factors.
我们今天就我们的业务、运营和财务业绩所做的一些陈述可能被认为是前瞻性的。此类陈述基于当前的预期和假设，这些预期和假设会受到许多风险和不确定性的影响。实际结果可能存在重大差异。请参阅我们的表格 10-K 和 10-Q，包括风险因素。
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.
我们没有义务更新任何前瞻性陈述。在本次电话会议中，我们将介绍GAAP和非GAAP财务指标。非GAAP与GAAP指标的调节包含在今天的收益新闻稿中，该新闻稿通过我们位于 abc.xyz/investor 的投资者关系网站分发并向公众提供。除非我们另有说明，否则我们将就同比比较发表评论。
And now, I'll turn the call over to Sundar.
现在，我把电话转给Sundar。
Sundar Pichai -- Chief Executive Officer
Sundar Pichai -- 首席执行官
Thank you, Jim, and hello, everyone. I'm really pleased with our results this quarter. They showed tremendous ongoing momentum in Search and great progress in cloud with our AI initiatives driving new growth. Search had another excellent quarter.
谢谢你，吉姆，你好，大家。我对我们本季度的业绩感到非常满意。他们在搜索方面表现出了巨大的持续势头，在云方面取得了巨大进展，我们的人工智能计划推动了新的增长。搜索又有一个出色的季度。
And in terms of product innovation, we are seeing great progress with AI Overviews. In Q2, cloud reached some major milestones. Quarterly revenues crossed the $10 billion mark for the first time, at the same time passed the $1 billion mark in quarterly operating profit. Year-to-date, our AI infrastructure and generative AI solutions for cloud customers have already generated billions in revenues and are being used by more than 2 million developers.
在产品创新方面，我们看到 AI Overviews 取得了长足的进步。在第二季度，云达到了一些重要的里程碑。季度营收首次突破100亿美元大关，同时季度营业利润突破10亿美元大关。年初至今，我们为云客户提供的 AI 基础设施和生成式 AI 解决方案已经创造了数十亿美元的收入，并被超过 200 万开发人员使用。
As I spoke about last quarter, we are uniquely well-positioned for the AI opportunity ahead. Our research and infrastructure leadership means we can pursue an in-house strategy that enables our product teams to move quickly. Combined with our model building expertise, we are in a strong position to control our destiny as the technology continues to evolve. Importantly, we are innovating at every layer of the AI stack, from chips to agents and beyond, a huge strength.
正如我在上个季度所谈到的，我们在迎接未来的人工智能机遇方面处于独特的有利地位。我们在研究和基础设施方面的领导地位意味着我们可以实施内部战略，使我们的产品团队能够快速行动。结合我们的模型构建专业知识，随着技术的不断发展，我们处于有利地位，可以控制我们的命运。重要的是，我们在人工智能堆栈的每一层都进行创新，从芯片到代理等等，这是一个巨大的优势。
We are committed to this leadership long term. This was underscored by the announcements we made at I/O, Cloud Next, and Google Marketing Live, and we'll touch on many of them here. Today, I'll start with Search, then move to our AI momentum more generally, followed by cloud, YouTube, and some closing thoughts. Let's dive in.
我们致力于长期保持这种领导地位。我们在 I/O、Cloud Next 和 Google Marketing Live 上发布的公告强调了这一点，我们将在这里介绍其中的许多内容。今天，我将从搜索开始，然后更广泛地转向我们的 AI 势头，然后是云、YouTube 和一些结束语。让我们开始吧。
Over the past 25 years, we have continued to reimagine and expand Google Search across many technological shifts. With AI, we are delivering better responses on more types of search queries and introducing new ways to search. We are pleased to see the positive trends from our testing continue as we roll out AI Overviews, including increases in Search usage and increased user satisfaction with the results. People who are looking for help with complex topics are engaging more and keep coming back for AI Overviews.
在过去的 25 年里，我们不断在许多技术变革中重新构想和扩展 Google 搜索。借助 AI，我们可以在更多类型的搜索查询上提供更好的响应，并引入新的搜索方式。我们很高兴地看到，随着我们推出 AI 概述，我们的测试呈现出积极的趋势，包括搜索使用量的增加和用户对结果的满意度的提高。在复杂主题上寻求帮助的人会更加参与，并不断回来阅读 AI 概述。
And we see even higher engagement from younger users aged 18 to 24 when they use Search with AI Overviews. As we have said, we are continuing to prioritize approaches that send traffic to sites across the web. And we are seeing that ads appearing either above or below AI Overviews continue to provide valuable options for people to take action and connect with businesses. Beyond AI Overviews, AI expands the types of queries we are able to address and opens a powerful new ways to Search.
我们看到，当 18 至 24 岁的年轻用户使用带有 AI 概览的搜索功能时，他们的参与度甚至更高。正如我们所说，我们将继续优先考虑将流量发送到网络站点的方法。我们看到，出现在 AI 概览上方或下方的广告继续为人们采取行动并与企业建立联系提供有价值的选择。除了 AI 概述之外，AI 还扩展了我们能够处理的查询类型，并开辟了一种强大的新搜索方式。
Visual search via Lens is one. Soon, you'll be able to ask questions by taking a video with Lens. And already, we have seen that AI Overviews in Lens leads to an increase in overall visual search usage. Another example is Circle to Search, which is available today on more than 100 million Android devices.
通过 Lens 进行视觉搜索就是其中之一。很快，您将能够通过使用 Lens 拍摄视频来提问。我们已经看到，Lens 中的 AI 概述导致整体视觉搜索使用量的增加。另一个例子是 Circle to Search，它目前可在超过 1 亿台 Android 设备上使用。
We are seeing tremendous momentum from our AI investments. More than 1.5 million developers are now using Gemini across our developer tools, and we recently unveiled new models that are more capable and efficient than ever. Gemini now comes in four sizes with each model designed for its own set of use cases. It's a versatile model family that runs efficiently on everything from data centers to devices.
我们从人工智能投资中看到了巨大的势头。现在有超过 150 万开发人员在我们的开发人员工具中使用 Gemini，我们最近推出了比以往任何时候都更强大、更高效的新模型。Gemini 现在有四种尺寸，每种型号都针对自己的一组用例而设计。它是一个多功能的模型系列，可在从数据中心到设备的所有设备上高效运行。
At 2 million tokens, we offer the longest context window of any large-scale foundation model to date, which powers developer use cases that no other model can handle. Gemini is making Google's own products better. All six of our products with more than 2 billion monthly users now use Gemini. This means that Google is the company that's truly bringing AI to everyone.
在 200 万个令牌下，我们提供迄今为止任何大规模基础模型中最长的上下文窗口，这为开发人员用例提供了其他模型无法处理的功能。Gemini 正在让 Google 自己的产品变得更好。我们月用户超过 20 亿的六款产品现在都在使用 Gemini。这意味着谷歌是真正将人工智能带给每个人的公司。
Gemini is powering incredibly helpful features in Search, Workspace, Google Messages, and more. At I/O, we showed new features coming soon to Gmail and to Google Photos. Soon, you'll be able to ask Photos questions like, what did I eat at that restaurant in Paris last year? For a glimpse of the future, I hope you saw Project Astra at I/O. It shows multimodal understanding and natural conversational capabilities.
Gemini 正在为 Search、Workspace、Google Messages 等提供非常有用的功能。在 I/O 大会上，我们展示了 Gmail 和 Google 相册即将推出的新功能。很快，你就能向 Photos 提问了，比如，我去年在巴黎的那家餐厅吃了什么？为了一窥未来，我希望您在 I/O 上看到了 Project Astra。它显示了多模态理解和自然的对话能力。
We've always wanted to build a universal agent, and it's an early look at how they can be helpful in daily life. Our AI product advances come from our long-standing foundation of research leadership, as well as our global network of infrastructure. In Q2, we announced our first data center and cloud region in Malaysia and expansion projects in Iowa, Virginia and Ohio. Our TPUs are a key bet here, too.
我们一直想构建一个通用代理，这是它们如何在日常生活中提供帮助的早期观察。我们的人工智能产品进步来自我们长期的研究领导地位基础，以及我们的全球基础设施网络。在第二季度，我们宣布了在马来西亚的第一个数据中心和云区域，并在爱荷华州、弗吉尼亚州和俄亥俄州进行了扩展项目。我们的热塑性聚氨酯（TPU）也是其中的关键选择。
Trillium is the sixth generation of our custom AI accelerator, and it's our best-performing and most energy-efficient TPU to date. It achieves a near 5x increase in peak compute performance per chip and a 67% more energy efficient compared to TPU v5e. And the latest NVIDIA Blackwell platform will be coming to Google Cloud in early 2025. We continue to invest in designing and building robust and efficient infrastructure to support our efforts in AI given the many opportunities we see ahead.
Trillium 是我们定制 AI 加速器的第六代产品，也是我们迄今为止性能最好、最节能的 TPU。与 TPU v5e 相比，它的每个芯片的峰值计算性能提高了近 5 倍，能效提高了 67%。最新的 NVIDIA Blackwell 平台将于 2025 年初登陆 Google Cloud。鉴于我们未来看到的许多机会，我们将继续投资于设计和构建强大而高效的基础设施，以支持我们在人工智能方面的努力。
Of course, as we do this, we'll continue to create capacity by allocating resources toward our highest priorities. We are relentlessly driving efficiencies in our AI models. For example, over the past quarter, we have made quality improvements that include doubling the core model size for AI Overviews while at the same time improving latency and keeping cost per AI Overviews served flat. And we are focused on matching the right model size to the complexity of the query in order to minimize impact on cost and latency.
当然，在我们这样做的同时，我们将继续通过将资源分配给我们的最高优先事项来创造能力。我们坚持不懈地提高 AI 模型的效率。例如，在过去的一个季度中，我们进行了质量改进，包括将 AI 概览的核心模型大小增加一倍，同时改善延迟并保持每次 AI 概览提供的成本保持不变。我们专注于将正确的模型大小与查询的复杂性相匹配，以最大程度地减少对成本和延迟的影响。
Separately on our real estate investments, we are taking a measured approach to match the current and future needs of our hybrid workforce, as well as our local communities. Next, Google Cloud. We continue to see strong customer interest, winning leading brands like Hitachi, Motorola Mobility, and KPMG. Our deep partnership with Oracle significantly expanded our joint offerings to their large customer base.
另外，在房地产投资方面，我们正在采取一种审慎的方法，以满足我们混合型劳动力以及当地社区当前和未来的需求。接下来是 Google Cloud。我们继续看到客户的兴趣浓厚，赢得了日立、摩托罗拉移动和毕马威等领先品牌的青睐。我们与甲骨文公司（Oracle）的深度合作显著扩展了我们的联合产品，使其拥有庞大的客户群。
Our momentum begins with our AI infrastructure, which provides AI start-ups like Essential AI with leading cost performance for models and high-performance computing applications. We continue to drive fundamental differentiation with new advances since Cloud Next. This includes Trillium, which I mentioned earlier, an A3 Mega powered by NVIDIA H100 GPUs, which doubles the networking bandwidth of A3. Our enterprise AI platform, Vertex, helps customers such as Deutsche Bank, Kingfisher, and the U.S.
我们的势头始于我们的人工智能基础设施，它为像 Essential AI 这样的人工智能初创公司提供了领先的模型和高性能计算应用程序的成本效益。自 Cloud Next 以来，我们将继续通过新的进展推动根本性的差异化。这包括我之前提到的 Trillium，它是由 NVIDIA H100 GPU 提供支持的 A3 Mega，它的网络带宽是 A3 的两倍。我们的企业 AI 平台 Vertex 为德意志银行、翠鸟和美国等客户提供帮助。
Air Force build powerful AI agents. Last month, we announced a number of new advances. Uber and WPP are using Gemini Pro 1.5 and Gemini Flash 1.5 in areas like customer experience and marketing. We broadened support for third-party models including Anthropic's Claude 3.5 Sonnet and open-source models like Gemma 2, Llama, and Mistral.
空军构建强大的 AI 代理。上个月，我们宣布了一些新的进展。Uber 和 WPP 正在客户体验和营销等领域使用 Gemini Pro 1.5 和 Gemini Flash 1.5。我们扩大了对第三方模型的支持，包括 Anthropic 的 Claude 3.5 Sonnet 和 Gemma 2、Llama 和 Mistral 等开源模型。
We are the only cloud provider to offer grounding with Google Search, and we are expanding grounding capabilities with Moody's, MSCI, ZoomInfo, and more. Our AI-powered applications portfolio is helping us win new customers and drive upsell. For example, our conversational AI platform is helping customers like Best Buy and Gordon Food Service. Gemini for Workspace helps Click Therapeutics analyze patient feedback as they build targeted digital treatments.
我们是唯一一家提供 Google 搜索接地服务的云提供商，并且我们正在通过 Moody's、MSCI、ZoomInfo 等扩展接地功能。我们的 AI 驱动的应用程序组合正在帮助我们赢得新客户并推动追加销售。例如，我们的对话式 AI 平台正在帮助百思买和戈登食品服务等客户。Gemini for Workspace 帮助 Click Therapeutics 在构建有针对性的数字治疗时分析患者反馈。
Our AI-powered agents are also helping customers develop better-quality software, find insights from their data and protect their organization against cybersecurity threats using Gemini. Software engineers at Wipro are using Gemini Code Assist to develop, test and document software faster. And data analysts at Mercado Libre are using BigQuery and Looker to optimize capacity planning and fulfill shipments faster. Cybersecurity risks continue to accelerate, and the number of breaches continue to grow, something we all see in the news every day and that our Mandiant teams help manage.
我们的人工智能代理还帮助客户开发更高质量的软件，从他们的数据中找到洞察力，并使用 Gemini 保护他们的组织免受网络安全威胁。Wipro 的软件工程师正在使用 Gemini Code Assist 来更快地开发、测试和记录软件。Mercado Libre 的数据分析师正在使用 BigQuery 和 Looker 来优化容量规划并更快地完成发货。网络安全风险继续加速，违规数量不断增加，我们每天都在新闻中看到这一点，我们的 Mandiant 团队也帮助管理。
Our strong track record of uptime, quality control and reliability make Google Cloud the trusted security choice for organizations like Fiserv and Marriott International. In Q2, we infused AI throughout our security portfolio, helping TELUS strengthen its proactive security posture. Turning next to YouTube. YouTube is focused on a clear strategy, connecting creators with a massive audience and enabling them to build successful businesses through ads and subscriptions while helping advertisers reach their desired audience.
我们在正常运行时间、质量控制和可靠性方面的良好记录使 Google Cloud 成为 Fiserv 和 Marriott International 等组织值得信赖的安全选择。在第二季度，我们将人工智能融入到我们的安全产品组合中，帮助TELUS加强其主动安全态势。转到YouTube旁边。YouTube 专注于制定明确的战略，将创作者与大量受众联系起来，并使他们能够通过广告和订阅建立成功的业务，同时帮助广告商接触到他们想要的受众。
We had a great brand cast this quarter, and Philipp will say more. I'm pleased with the progress here. YouTube has remained No. 1 in the U.S.
本季度我们有一个很棒的品牌阵容，菲利普会说更多。我对这里的进展感到满意。YouTube在美国一直排名第一。
streaming watch time according to Nielsen. Views of YouTube Shorts and Connected TVs more than doubled last year, and we are making it easier for creators to add captions and turn regular videos into Shorts. Next, on Android and Pixel. We joined Samsung for their Galaxy Unpacked event a few weeks ago, and we shared that Samsung's new devices will include the latest AI-powered Google updates on Android.
根据尼尔森的数据，流媒体观看时间。去年，YouTube Shorts 短视频和联网电视的观看次数增加了一倍多，我们正在让创作者更轻松地添加字幕并将常规视频转换为 Shorts。接下来，在 Android 和 Pixel 上。几周前，我们加入了三星的 Galaxy Unpacked 活动，我们分享了三星的新设备将包括 Android 上最新的 AI 驱动的 Google 更新。
It was a great event. I'm looking forward to our Made by Google event happening in August. We'll have lots to share around Android and the Pixel portfolio of devices. Our Pixel line is doing well.
这是一个伟大的事件。我期待着 8 月份举行的 Made by Google 活动。我们将有很多关于 Android 和 Pixel 设备组合的分享。我们的 Pixel 系列做得很好。
We recently introduced a new Pixel 8a powered by our latest Google Tensor G3 chip. It provides beautiful AI experiences like Circle to Search, Best Take, and a Gemini-powered AI assistant. In Other Bets, I'm really pleased with the progress Waymo is making, a real leader in space and getting rave reviews from users. Waymo served more than 2 million trips to date and driven more than 20 million fully autonomous miles on public roads.
我们最近推出了一款新的 Pixel 8a，搭载我们最新的 Google Tensor G3 芯片。它提供精美的 AI 体验，例如 Circle to Search、Best Take 和 Gemini 驱动的 AI 助手。在《Other Bets》中，我对Waymo所取得的进步感到非常满意，Waymo是该领域的真正领导者，并得到了用户的好评如潮。迄今为止，Waymo 已经服务了超过 200 万次出行，并在公共道路上行驶了超过 2000 万英里的完全自动驾驶里程。
Waymo is now delivering well over 50,000 weekly paid public rides, primarily in San Francisco and Phoenix. And in June, we removed the wait list in San Francisco, so anyone can take a ride. Fully autonomous testing is underway in other Bay Area locations without a human in the driver seat. Before I close, I want to acknowledge that today is Ruth's final earnings call.
Waymo现在每周提供超过50,000次付费公共乘车服务，主要在旧金山和凤凰城。6 月，我们取消了旧金山的等候名单，因此任何人都可以搭车。完全自主测试正在湾区的其他地点进行，驾驶员座位上没有人类。在我结束之前，我想承认今天是露丝的最后一次财报电话会议。
Let me take a moment to thank her for all she has done for Google and Alphabet as our longest-serving CFO. I'm excited to continue to work with her in her new role. And I look forward to welcoming our newly appointed CFO, Anat Ashkenazi. She starts next week, and you'll hear from her on our call next quarter.
让我花点时间感谢她作为我们任职时间最长的首席财务官为谷歌和Alphabet所做的一切。我很高兴能在她的新角色中继续与她合作。我期待着欢迎我们新任命的首席财务官 Anat Ashkenazi。她将于下周开始工作，您将在下个季度的电话会议上收到她的来信。
Thanks, as always, to our employees and partners everywhere for a great Q2. With that, over to you, Philipp.
一如既往地感谢我们的员工和世界各地的合作伙伴，让我们在第二季度取得了美好的成绩。说到这里，就交给你了，菲利普。
Philipp Schindler -- Senior Vice President, Chief Business Officer
Philipp Schindler -- 高级副总裁兼首席商务官
Thanks, Sundar, and hello, everyone. Starting with performance, Google Services delivered revenues of $73.9 billion for the quarter, up 12% year on year. Search and other revenues grew 14% year on year, led by growth in the retail vertical followed by financial services. YouTube ads revenues were up 13% year on year, driven by growth in brand, as well as direct response.
谢谢，Sundar，你好，大家。从业绩来看，Google 服务本季度的收入为 739 亿美元，同比增长 12%。搜索和其他收入同比增长14%，其中零售垂直领域的增长主要由金融服务引领。YouTube广告收入同比增长13%，这得益于品牌的增长以及直接反应。
Network revenues declined 5% year on year. In subscriptions, platforms and devices, year-on-year revenues increased 14%, driven again by strong growth in YouTube subscriptions. For the rest of my remarks, I want to double-click on two topics: first, how we are applying AI across the marketing process to deliver an even stronger ads experience; second, YouTube's position as the leading multiformat platform. So, let me start by sharing some of the ways we're applying AI to bring more performance benefits to even more businesses.
网络收入同比下降5%。在订阅、平台和设备方面，收入同比增长14%，这再次受到YouTube订阅量强劲增长的推动。在我接下来的发言中，我想双击两个主题：首先，我们如何在整个营销过程中应用人工智能来提供更强大的广告体验;第二，YouTube作为领先的多格式平台的地位。因此，让我首先分享一些我们应用人工智能为更多企业带来更多性能优势的方法。
Q2 brought several major opportunities to meet and learn from users, developers, creators and customers. From I/O to Brandcast, Google Marketing Live, and Cannes, a growing number of our customers and partners are looking to understand how to successfully incorporate AI into their businesses. This quarter, we announced over 30 new ads features and products to help advertisers leverage AI and keep pace with the evolving expectations of customers and users. Across Search, PMax, Demand Gen, and retail, we're applying AI to streamline workflows, enhance creative asset production and, provide more engaging experiences for consumers.
第二季度带来了几个重要的机会，可以与用户、开发人员、创作者和客户见面并向他们学习。从 I/O 到 Brandcast、Google Marketing Live 和戛纳电影节，我们越来越多的客户和合作伙伴都在寻求了解如何成功地将 AI 融入他们的业务。本季度，我们宣布了 30 多项新的广告功能和产品，以帮助广告主利用 AI 并跟上客户和用户不断变化的期望。在搜索、PMax、Demand Gen 和零售领域，我们正在应用 AI 来简化工作流程，增强创意资产生产，并为消费者提供更具吸引力的体验。
Listening to our customers, retailers in particular have welcomed AI-powered features to help scale the depth and breadth of their assets. For example, as part of the new and easier-to-use Merchant Center, we've expanded Product Studio with tools that bring the power of Google AI to every business owner. You can upload a product image from the AI with something like feature this product with Paris skyline in the background, and Product Studio will generate campaign-ready assets. I also hear great feedback from our customers on many of our other new AI-powered features.
听取了我们的客户的意见，零售商尤其欢迎人工智能驱动的功能，以帮助扩大其资产的深度和广度。例如，作为易于使用的全新商家中心的一部分，我们扩展了 Product Studio，使用各种工具将 Google AI 的强大功能带给每位企业主。您可以从 AI 上传一张产品图片，例如以巴黎天际线为背景的特色产品，Product Studio 将生成可用于营销活动的资产。我还听到了客户对我们许多其他人工智能新功能的好评。
We're beta testing virtual try-on and shopping ads and plan to roll it out widely later this year. Feedback shows this feature gets 60% more high-quality views than other images and higher click out to retailer sites. Retailers love it because it drives purchasing decisions and fewer returns. Our AI-driven profit optimization tools have been expanded to Performance Max and standard shopping campaigns.
我们正在对虚拟试妆广告和购物广告进行 Beta 版测试，并计划在今年晚些时候广泛推出。反馈显示，与其他图片相比，此功能的高质量观看次数高出 60%，零售商网站的点击率更高。零售商喜欢它，因为它可以推动购买决策并减少退货。我们的 AI 驱动的利润优化工具已扩展到效果最大化和标准购物广告系列。
Advertisers who use profit optimization and Smart Bidding see a 15% uplift in profit on average compared to revenue-only bidding. Lastly, Demand Gen is rolling out to Display and Video 360 and Search Ads 360 in the coming months with new generative image tools that create stunning, high-quality image assets for social marketers. As we said at GML, when paired with Search or PMax, Demand Gen delivers an average of 14% more conversions. The use cases we're seeing across the industry show the incredible potential of these AI-enabled products to improve performance.
与仅使用收入出价相比，使用利润优化和智能出价的广告客户平均可提高 15% 的利润。最后，Demand Gen 将在未来几个月内向 Display and Video 360 和 Search Ads 360 推出新的生成式图片工具，为社交营销人员打造令人惊叹的高质量图片资产。正如我们在 GML 所说，当与 Search 或 PMax 配对时，Demand Gen 的转化率平均高出 14%。我们在整个行业中看到的用例表明，这些支持 AI 的产品在提高性能方面具有巨大的潜力。
Let me briefly share two examples with you. Luxury jewelry retailer Tiffany leveraged Demand Gen during the holiday season and saw a 2.5% brand lift in consideration and actions such as adding items to carts and booking appointments. The campaign drove a 5.6 times more efficient cost per click compared to social media benchmarks. Our own Google marketing team used Demand Gen to create nearly 4,500 ad variations for Pixel 8 campaign shown across YouTube, Discover, and Gmail, delivering twice the clicks through rate at nearly a quarter of the cost.
下面我简单和大家分享两个例子。奢侈珠宝零售商蒂芙尼（Tiffany）在假日季利用了Demand Gen，在购买意向和将商品添加到购物车和预约等行动方面，品牌提升了2.5%。与社交媒体基准相比，该活动的每次点击效率提高了 5.6 倍。我们自己的 Google 营销团队使用 Demand Gen 为 Pixel 8 广告系列制作了近 4,500 个广告变体，在 YouTube、Google 探索和 Gmail 上展示，以近四分之一的成本实现了两倍的点击率。
In addition to strengthening our ads products for customers, we continue to evolve our existing systems and products with improved models delivering further performance gains. In just six months, AI-driven improvements to quality, relevance and language understanding have improved broad match performance by 10% for advertisers using Smart Bidding. Also, advertisers who adopt PMax to broad match and Smart Bidding in their Search campaigns see an average increase of over 25% more conversions of value at a similar cost. We'll continue to listen to our customers and use their feedback to drive innovation across our products.
除了加强我们为客户提供的广告产品外，我们还继续改进我们现有的系统和产品，改进模型以进一步提高性能。在短短六个月的时间里，人工智能在质量、相关性和语言理解方面的改进使使用智能出价的广告主的广泛匹配效果提高了 10%。此外，在搜索广告系列中采用 PMax 进行广泛匹配和智能出价的广告客户在相似的费用下，价值转化次数平均增加了 25% 以上。我们将继续倾听客户的意见，并利用他们的反馈来推动我们产品的创新。
And as you can hear, I continue to be excited about the AI era for ads. Now, let's turn to YouTube. I've talked before about our approach to making YouTube the best place to create, watch and monetize. First, the best place to create.
正如你所听到的，我仍然对广告的人工智能时代感到兴奋。现在，让我们转向YouTube。我之前已经讨论过我们如何使 YouTube 成为创作、观看和获利的最佳场所。首先，最好的创作场所。
What sets YouTube apart from every other platform are the creators and the connection they have with their fans. Audience is tuning in to watch their favorite creators continue to grow. For example, two weeks ago, MrBeast's channel hit more than 300 million subscribers. Next, the best place to watch.
YouTube 与其他所有平台的不同之处在于创作者以及他们与粉丝的联系。观众正在收看他们最喜欢的创作者继续增长。例如，两周前，MrBeast的频道的订阅者超过了3亿。接下来，最好的观看地点。
Our long-term investment in CTV continues to deliver. Views on CTV have increased more than 130% in the last three years. According to Nielsen, YouTube is the No. 1 most watched streaming platform on TV screens in the U.S.
我们对CTV的长期投资继续取得成果。在过去三年中，CTV的观看次数增加了130%以上。根据尼尔森的数据，YouTube是美国电视屏幕上收视率第一的流媒体平台。
for the 17th consecutive month. Zooming out, when you look not just at streaming but at all media companies and their combined TV viewership, YouTube is the second most watched after Disney. And this growth is happening in multiple verticals, including sports, which has seen CTV watch time on YouTube grow 30% year over year. Lastly, the best place to monetize.
连续第17个月。放眼范围，不仅要看流媒体，还要看所有媒体公司及其电视收视率总和，YouTube是仅次于迪士尼的第二大收视率。这种增长发生在包括体育在内的多个垂直领域，YouTube 上的 CTV 观看时间同比增长了 30%。最后，最好的货币化场所。
CTV on YouTube is continuing to benefit from a combination of strong watch time growth, viewer and advertiser innovation and a shift in brand advertising budgets from linear TV to YouTube. Our largest advertisers across verticals, including retail, entertainment, telco, and home and personal care, are partnering with creators on ads and organic integrations. Verizon, for example, worked with a YouTube creator and Verizon customer to show the many ways that plans and offerings can be customized to fit people's lives. Using AI-powered formats, they created sketches in multiple lengths and orientations to serve the right creative to the right viewer and drive people to their site.
YouTube 上的 CTV 继续受益于强劲的观看时长增长、观众和广告商的创新以及品牌广告预算从线性电视转向 YouTube。我们在零售、娱乐、电信、家庭和个人护理等垂直领域最大的广告商正在与创作者合作进行广告和自然集成。例如，Verizon 与 YouTube 创作者和 Verizon 客户合作，展示了可以定制计划和产品的多种方式以适应人们的生活。他们使用 AI 驱动的格式创建了多种长度和方向的草图，以便为正确的观众提供正确的创意，并吸引人们访问他们的网站。
Verizon's creator ads had a 15% lower CPA and a 38% higher conversion rate versus other ads. Turning to Shorts. Last quarter, I shared that in the U.S., the monetization rate of YouTube Shorts relative to in-stream viewing is showing a healthy rate of growth. Again, this quarter, we continue to see an improvement in Shorts monetization, particularly in the U.S.
与其他广告相比，Verizon 的创作者广告的每次转化费用低 15%，转化率高 38%。转向短裤。上个季度，我分享说，在美国，YouTube Shorts 的货币化率相对于插播观看量显示出健康的增长率。同样，本季度，我们继续看到 Shorts 货币化有所改善，尤其是在美国。
We're also seeing a very encouraging contribution from brand advertising on Shorts, which we launched on the product in Q4 last year. Lastly, a few words on Shopping. Last year, viewers watched 30 billion hours of Shopping-related videos, and we saw a 25% increase in watch time for videos that help people shop. While it's early days, Shopping remains a key area of investment.
我们还看到 Shorts 上的品牌广告做出了非常令人鼓舞的贡献，我们在去年第四季度推出了 Shorts 广告。最后，谈谈购物。去年，观看者观看了 300 亿小时的购物相关视频，我们看到帮助用户购物的视频的观看时长增加了 25%。虽然现在还处于早期阶段，但购物仍然是一个关键的投资领域。
At GML, we rolled out several product updates to YouTube Shopping, helping creators sell products to their viewers. These updates included product tagging where creators can tag products in their videos for viewers to discover and purchase, product collections and a new affiliate hub, a one-stop shop for creators to find deals and promotional offers from brands and track their affiliate earnings. With that, I'll finish by saying a huge thank you to Googlers everywhere for their extraordinary commitment and to our customers and partners for their continued collaboration and trust. And Ruth, thanks for your amazing leadership and partnership over all these years.
在 GML，我们对 YouTube 购物推出了多项产品更新，帮助创作者向观众销售产品。这些更新包括产品标记，创作者可以在他们的视频中标记产品，供观众发现和购买、产品系列和一个新的联盟中心，这是一个一站式商店，创作者可以找到品牌的交易和促销优惠，并跟踪他们的联盟收入。最后，我要对世界各地的 Google 员工表示衷心的感谢，感谢他们的非凡承诺，并感谢我们的客户和合作伙伴的持续合作和信任。露丝，感谢你这些年来出色的领导和合作。
Now, for one last time, it's over to you.
现在，最后一次，它由你来完成。
Ruth Porat -- President and Chief Investment Officer, Chief Financial Officer
Ruth Porat -- 总裁兼首席投资官、首席财务官
Thank you, Philipp, and thanks, Sundar, for those kind words. We had another strong quarter, driven in particular by performance in Search and Cloud, as well as the ongoing efforts to durably reengineer our cost base. My comments will be on year-over-year comparisons for the second quarter unless I state otherwise. I will start with results at the Alphabet level, followed by segment results and conclude with our outlook.
谢谢你，菲利普，也谢谢你，桑达尔，谢谢你的那些客气话。我们又迎来了一个强劲的季度，这主要得益于搜索和云的业绩表现，以及我们持续努力重新设计我们的成本基础。除非我另有说明，否则我将就第二季度的同比比较发表评论。我将从 Alphabet 层面的结果开始，然后是细分市场的结果，最后是我们的前景。
For the second quarter, our consolidated revenues were $84.7 billion, up 14% or up 15% in constant currency. Search remained the largest contributor to revenue growth. In terms of expenses, total cost of revenues was $35.5 billion, up 11%. Other cost of revenues was $22.1 billion, up 14%, with the increase driven primarily by content acquisition costs, followed by depreciation, as well as the impact of the Canadian Digital Services Tax, which was applied retroactively.
第二季度，我们的合并收入为 847 亿美元，按固定汇率计算增长 14% 或增长 15%。搜索仍然是收入增长的最大贡献者。在费用方面，总收入成本为 355 亿美元，增长 11%。其他收入成本为 221 亿美元，增长 14%，增长主要是由内容获取成本推动的，其次是折旧，以及加拿大数字服务税的影响，该税是追溯适用的。
Operating expenses were $21.8 billion, up 5%, primarily reflecting an increase in R&D partially offset by a decline in G&A with sales and marketing essentially flat to the second quarter last year. The increase in R&D was driven primarily by compensation, which was affected by lapping a reduction in valuation-based compensation liabilities in certain Other Bets in the second quarter last year followed by depreciation. The largest single factor in the year-on-year decline in G&A expenses was lower charges related to legal matters. Operating income was $27.4 billion, up 26%, and our operating margin was 32%.
运营费用为218亿美元，增长5%，主要反映了研发的增长，部分被G&A的下降所抵消，销售和营销与去年第二季度基本持平。研发的增长主要是由薪酬推动的，而薪酬则受到去年第二季度某些其他赌注中基于估值的薪酬负债减少的影响，其次是折旧。G&A费用同比下降的最大单一因素是与法律事务相关的费用减少。营业收入为 274 亿美元，增长 26%，营业利润率为 32%。
Net income was $23.6 billion and EPS was $1.89. We delivered free cash flow of $13.5 billion in the second quarter and $60.8 billion for the trailing 12 months. As a reminder, last year, we had a timing benefit in the second and third quarters from a $10.5 billion deferred cash tax payment made in the fourth quarter, which depressed reported free cash flow growth this quarter and will do so again next quarter. We ended the quarter with $101 billion in cash and marketable securities.
净利润为 236 亿美元，每股收益为 1.89 美元。我们在第二季度实现了 135 亿美元的自由现金流，过去 12 个月的自由现金流为 608 亿美元。值得一提的是，去年，我们在第二季度和第三季度从第四季度支付的 105 亿美元递延现金税中获得了时间优势，这抑制了本季度报告的自由现金流增长，下个季度将再次如此。本季度末，我们拥有 1010 亿美元的现金和有价证券。
Turning to segment results. Within Google Services, revenues were $73.9 billion, up 12%. Google Search and other advertising revenues of $48.5 billion in the quarter were up 14%, led again by growth in retail followed by the financial services vertical. YouTube advertising revenues of $8.7 billion were up 13%, driven by brand followed by direct response advertising.
转向细分结果。在 Google 服务业务中，收入为 739 亿美元，增长 12%。本季度，谷歌搜索和其他广告收入为 485 亿美元，同比增长 14%，再次受到零售增长的引领，其次是金融服务垂直行业。YouTube 广告收入为 87 亿美元，增长 13%，主要受品牌推动，其次是直接响应广告。
Network advertising revenues of $7.4 billion were down 5%. Subscription platforms and devices revenues were $9.3 billion, up 14%, primarily reflecting growth in YouTube subscription revenues. TAC was $13.4 billion, up 7%. Google Services operating income was $29.7 billion, up 27%, and the operating margin was 40%.
网络广告收入为74亿美元，同比下降5%。订阅平台和设备收入为 93 亿美元，增长 14%，主要反映了 YouTube 订阅收入的增长。TAC 为 134 亿美元，增长 7%。Google Services 营业收入为 297 亿美元，同比增长 27%，营业利润率为 40%。
Turning to the Google Cloud segment. Revenues were $10.3 billion for the quarter, up 29%, reflecting, first, significant growth in GCP, which was above growth for Cloud overall and includes an increasing contribution from AI; and second, strong Google Workspace growth, primarily driven by increases in average revenue per seat. Google Cloud delivered operating income of $1.2 billion and an operating margin of 11%. As to our Other Bets for the second quarter, revenues were $365 million and the operating loss was $1.1 billion.
转向 Google Cloud 细分市场。本季度收入为 103 亿美元，增长 29%，首先反映了 GCP 的显着增长，高于云的整体增长，其中包括 AI 的贡献不断增加;其次，Google Workspace的强劲增长，主要是由于每个席位的平均收入增长。Google Cloud 的营业收入为 12 亿美元，营业利润率为 11%。至于我们第二季度的其他赌注，收入为 3.65 亿美元，营业亏损为 11 亿美元。
Turning to our outlook for the business. With respect to Google Services, first, within advertising. The strong performance of Search was broad based across verticals. In YouTube, we are pleased with the growth in the quarter.
谈谈我们对业务的展望。关于 Google 服务，首先，在广告中。搜索的强劲表现广泛地体现在各个垂直领域。在YouTube方面，我们对本季度的增长感到满意。
We had healthy watch time growth, continued to close the monetization gap in Shorts and had continued momentum in Connected TV with brand benefiting in part from an ongoing shift in budgets from linear television to digital. As we look forward to the third quarter, we will be lapping the increasing strength in advertising revenues in the second half of 2023, in part from APAC-based retailers. Turning to subscriptions, platforms, and devices. First, we continue to have significant growth in our subscriptions business, which drives the majority of revenue growth in this line.
我们的观看时长实现了稳健的增长，继续缩小了短片的变现差距，联网电视业务继续保持增长势头，品牌在一定程度上受益于预算从线性电视向数字电视的持续转变。展望第三季度，我们将在 2023 年下半年利用广告收入的强劲增长，部分广告收入来自亚太地区的零售商。转向订阅、平台和设备。首先，我们的订阅业务继续保持显着增长，这推动了这一业务线的大部分收入增长。
However, there was a sequential decline in the year-on-year growth rate as we anniversary-ed the impact of a price increase for YouTube TV in the second quarter last year. The impact will persist through the balance of the year. Second, with regard to platforms, we are pleased with the performance in Play driven by an increase in buyers. Finally, with respect to devices, the most important point as we look forward is that our Made by Google launches have been pulled forward into the third quarter from the fourth quarter last year, benefiting revenues in Q3 this year.
然而，由于我们注意到去年第二季度YouTube TV价格上涨的影响，同比增长率出现了环比下降。这种影响将持续到今年剩余时间。其次，在平台方面，我们对Play市场在买家增加的推动下的表现感到满意。最后，关于设备，我们展望未来的最重要的一点是，我们的 Made by Google 发布已从去年第四季度提前到第三季度，从而受益于今年第三季度的收入。
Turning to Cloud, which continued to deliver very strong results. For the first time, Cloud crossed $10 billion in quarterly revenues and $1 billion in quarterly operating profit. As Sundar noted, year to date, our AI infrastructure and generative AI solutions for cloud customers have already generated billions in revenues and are being used by more than 2 million developers. We're particularly encouraged that the majority of our top 100 customers are already using our generative AI solutions.
转向云，它继续提供非常强劲的成果。云计算的季度收入首次超过100亿美元，季度营业利润超过10亿美元。正如 Sundar 所指出的，年初至今，我们为云客户提供的 AI 基础设施和生成式 AI 解决方案已经产生了数十亿美元的收入，并被超过 200 万开发人员使用。令我们感到特别鼓舞的是，我们的前 100 名客户中的大多数已经在使用我们的生成式 AI 解决方案。
We continue to invest aggressively in the business. Turning to margins. The margin expansion in Q2 versus last year reflects our ongoing efforts to durably reengineer our cost base, as well as revenue strength. Our leadership team remains focused on our efforts to moderate the pace of expense growth in order to create capacity for the increases in depreciation and expenses associated with the higher levels of investment in our technical infrastructure.
我们将继续积极投资这项业务。转向利润率。与去年相比，第二季度的利润率有所增长，反映了我们持续努力重新设计我们的成本基础以及收入实力。我们的领导团队仍然专注于努力减缓费用增长的速度，以便为与技术基础设施投资水平较高相关的折旧和费用增加创造能力。
Once again, headcount declined quarter on quarter, which reflects both actions we have taken in the first half of the year and a much slower pace of hiring. Looking ahead, we expect a slight increase in headcount in the third quarter as we bring on new graduates. As we have discussed previously, we are continuing to invest in top engineering and technical talent, particularly in cloud and technical infrastructure. Looking forward, we continue to expect to deliver full year 2024 Alphabet operating margin expansion relative to 2023.
员工人数再次环比下降，这反映了我们在上半年采取的行动和招聘速度大大放缓。展望未来，我们预计第三季度员工人数将略有增加，因为我们引进了新的毕业生。正如我们之前所讨论的，我们将继续投资于顶尖的工程和技术人才，特别是在云和技术基础设施方面。展望未来，我们仍然预计 2024 年全年 Alphabet 的营业利润率将比 2023 年有所增长。
However, in the third quarter, operating margins will reflect the impact of both the increases in depreciation and expenses associated with the higher levels of investment in our technical infrastructure, as well as the increase in cost of revenues due to the pull forward of hardware launches into Q3. With respect to capex, our reported capex in the second quarter was $13 billion, once again, driven overwhelmingly by investment in our technical infrastructure with the largest component for servers followed by data centers. Looking ahead, we continue to expect quarterly capex throughout the year to be roughly at or above the Q1 capex of $12 billion, keeping in mind that the timing of cash payments can cause variability in quarterly reported capex. With regard to Other Bets, we continue to focus on improving overall efficiencies as we invest for long-term returns.
然而，在第三季度，营业利润率将反映出与技术基础设施投资水平提高相关的折旧和费用增加的影响，以及由于硬件发布提前到第三季度而导致的收入成本增加的影响。在资本支出方面，我们报告的第二季度资本支出为130亿美元，再次受到对我们技术基础设施投资的推动，其中最大的服务器组件，其次是数据中心。展望未来，我们继续预计全年的季度资本支出将大致等于或高于第一季度120亿美元的资本支出，但请记住，现金支付的时间可能会导致季度报告的资本支出出现差异。关于其他赌注，我们继续专注于提高整体效率，因为我们投资于长期回报。
Waymo is an important example of this with its technical leadership coupled with progress on operational performance. As you will see in the 10-Q, we have chosen to commit to a new multiyear investment of $5 billion. This new round of funding, which is consistent with recent annual investment levels, will enable Waymo to continue to build the world's leading autonomous driving technology company. To close, this is my 56th and last earnings call, 37 of them at Alphabet.
Waymo就是一个重要的例子，其技术领先地位以及运营绩效的进步。正如您将在10-Q中看到的那样，我们选择承诺进行50亿美元的新多年投资。此次新一轮融资，与近期的年度投资水平一致，将使Waymo能够持续打造全球领先的自动驾驶技术公司。最后，这是我的第56次也是最后一次财报电话会议，其中37次在Alphabet。
So, I have a few closing thoughts of gratitude. I've been so proud to be at Google and Alphabet as CFO and to work with some of the smartest people in the world every day. I think we have accomplished a lot in the last nine-plus years, and I am confident that progress will continue. Of course, I'm not going far, and I'm honored to have my new role, which I've been slowly working my way into during the past 11 months.
所以，我有一些感激之情的结束语。我很自豪能在 Google 和 Alphabet 担任首席财务官，每天都能与世界上最聪明的人一起工作。我认为我们在过去九年多的时间里取得了很多成就，我相信我们将继续取得进展。当然，我不会走得太远，我很荣幸能担任我的新角色，在过去的 11 个月里，我一直在慢慢适应这个角色。
And I look forward to continuing to work with Sundar and our great team. Being CFO of one of the most important companies in the world has been the opportunity and responsibility of a lifetime. Google's mission of advancing technology and bringing information to people throughout the world is as relevant today as it was when I worked on its IPO. Technology has been a catalyst for economic growth throughout human history.
我期待着继续与Sundar和我们伟大的团队合作。成为世界上最重要的公司之一的首席财务官是一生的机会和责任。谷歌的使命是推动技术进步，为全世界的人们提供信息，这在今天与我参与其IPO时一样重要。纵观人类历史，技术一直是经济增长的催化剂。
The people on this call know that if a technological advancement is not the focus of every business and government, they will be left behind. Underpinning this is the need for sound and responsible investment. That has never been more important than today, and certainly, that is Google and Alphabet's focus. I want to end by thanking Googlers around the world for the innovation and commitment that has enabled us to deliver such extraordinary products and services globally.
参加这次电话会议的人们知道，如果技术进步不是每个企业和政府的重点，他们就会被抛在后面。支撑这一点的是需要健全和负责任的投资。这一点从未像今天这样重要，当然，这也是谷歌和Alphabet的重点。最后，我要感谢世界各地的 Google 员工，感谢他们的创新和承诺，使我们能够在全球范围内提供如此卓越的产品和服务。
I also want to thank our investors and analysts for your long-term support and your feedback. Thank you. Sundar, Philipp, and I will now take your questions.
我还要感谢我们的投资者和分析师长期以来的支持和反馈。谢谢。桑达尔、菲利普和我现在来回答你们的问题。
Questions & Answers: 问题与解答：
Operator 算子
Thank you. [Operator instructions] Your first question comes from Brian Nowak with Morgan Stanley. Your line is now open.
谢谢。[操作说明]你的第一个问题来自摩根士丹利的布莱恩·诺瓦克。您的线路现已开放。
Brian Nowak -- Analyst Brian Nowak -- 分析师
Thanks for taking my questions. First, thank you, Ruth, for all the help and significant impact over the past decade. The first one, it's a little bit of a jump, I guess, for Sundar, Philipp or Ruth. I guess we're sort of 18 months, this fever pitch around a gen AI focus in the world.
感谢您回答我的提问。首先，感谢露丝，感谢你在过去十年中给予的所有帮助和重大影响。第一个，我猜，对于桑达尔、菲利普或露丝来说，这有点跳跃。我想我们已经有 18 个月了，这种狂热的宣传围绕着世界上的一代人工智能焦点。
Maybe from any of your perspective, can you just sort of talk to us about areas where you've seen faster-than-expected traction or testing adoption of some of the AI, generative AI capabilities versus slower-than-expected traction and testing from a Google perspective? And then, Ruth, I appreciate all the comments about structurally reengineering the opex base. Are there any more tangible examples of areas you can talk to us about where you still see further ways to drive more efficiency across the company? Thanks.
也许从你的任何角度来看，您能否与我们谈谈您看到的一些 AI 的牵引力或测试采用速度快于预期的领域，从 Google 的角度来看，生成式 AI 功能的牵引力和测试速度慢于预期？然后，Ruth，我感谢所有关于在结构上重新设计运营支出基础的评论。有没有更具体的例子可以和我们谈谈，在哪些方面你仍然看到进一步的方法来提高整个公司的效率？谢谢。
Sundar Pichai -- Chief Executive Officer
Sundar Pichai -- 首席执行官
Brian, thanks. I'll take the first part. I think it's a good question. Obviously, I think there is a time curve in terms of taking the underlying technology and translating it into meaningful solutions across the board, both on the consumer and the enterprise side.
布莱恩，谢谢。我将介绍第一部分。我认为这是个好问题。显然，我认为在采用底层技术并将其转化为有意义的全面解决方案方面，无论是在消费者方面还是在企业方面，都存在着一个时间曲线。
Definitely, on the consumer side, I'm pleased, as I said in my comments earlier, in terms of how for a product like Search, which is used at that scale over many decades, how we've been able to introduce it in a way that it's additive and enhances overall experience and this positively contributing there. I think across our consumer products, we've been able -- I think we are seeing progress on the organic side. Obviously, monetization is something that we would have to earn on top of it. The enterprise side, I think we are at a stage where definitely there are a lot of models.
当然，在消费者方面，正如我之前在评论中所说的那样，我很高兴，对于像搜索这样的产品，几十年来一直以这种规模使用，我们如何能够以一种加法的方式引入它并增强整体体验，并在这方面做出积极贡献。我认为我们在整个消费品中，已经能够 - 我认为我们看到了有机方面的进展。显然，货币化是我们必须在此之上赚钱的东西。在企业方面，我认为我们正处于一个肯定有很多模型的阶段。
I think roughly, the models are all kind of converging toward a set of base capabilities. But I think where the next wave is working to build solutions on top of it. And I think there are pockets, be it coding, be it in customer service, etc., where we are seeing some of those use cases are seeing traction, but I still think there is hard work there to completely unlock those.
Ruth Porat -- President and Chief Investment Officer, Chief Financial Officer
And on your second question -- first, thank you for your comments. Look, the reason we've consistently used the term, the phrase that we're focused on durably reengineering our cost base is because these are deep work streams. They're not tactical fixes, and we continue to build on them. And so, the main areas that we've talked about are around product and process prioritization, around organizational efficiency and structure.
Both of those are reflected in the headcount and the fact that headcount is down year on year. As I said, across our entire leadership team, we remain focused on continuing to execute against them. So, in terms of the most recent examples, as we talked about last quarter with the combination of the devices and services product area with the platforms and ecosystems product area. We announced that back in April.
And what we discussed last quarter and what we're seeing is that unifying teams across these organizations helps with product execution, and what we're really focused on is really adding to velocity and efficiency. So, kind of the gift that keeps giving. And then more broadly, all of the work streams that we've talked to you about before, we continue to remain focused on. A big one, very important one, is all of the efficiency efforts, the work streams around technical infrastructure and improving efficiency there.
We're also working on the use of AI across Alphabet. We're working on continuing to build on what we've done with our centralized procurement organization. We're continuing to optimize our real estate portfolio. And so, again, this is across our leadership team.
These are efforts that all build to this phrase, durably reengineering our cost base.
Brian Nowak -- Analyst
Great. Thank you both.
Operator
And our next question comes from Doug Anmuth with JPMorgan. Your line is now open.
Doug Anmuth -- Analyst
Thanks for taking the questions. One for Ruth and one for Sundar. Ruth, you've now had Google Services operating margins roughly 40% for the past two quarters. Just as you create more capacity to help offset the future investments, is it reasonable to think that you could sustain at those kind of levels going forward? And then, Sundar, just as it relates to AI Overviews, you talked about the positive trends there.
Can you just help us understand where you are, how far along in rolling out AI Overviews and then any more color around kind of click-through rates and monetization levels relative to your traditional searches? Thanks.
Ruth Porat -- President and Chief Investment Officer, Chief Financial Officer
So, in terms of the Google Services operating margin, it did reflect all the work that we're doing on durably reengineering the cost base. It also reflected the benefit of strong revenue performance in Search. And so, what I tried to lay out in the comments as we look forward to the third quarter is operating margins will reflect the increases in depreciation and expenses associated with higher levels of our investment in technical infrastructure. It will also reflect higher expenses associated with the Pixel launch due to the pull forward.
So, those are important factors. I would say overall, companywide, it's important to note that we do expect to continue to deliver full year '24 Alphabet operating margin expansion relative to 2023, but I did want to highlight those important points as we look forward to Q3.
Sundar Pichai -- Chief Executive Officer
And Doug, thanks. On the AI Overviews, we have rolled it out in the U.S. And we are -- will be, through the course of the year, definitely scaling it up, both to more countries. And also, we have taken a conservative start, focused on quality, making sure the metrics are healthy and so on.
But you will see us expand the use cases around it, and we'll touch definitely more queries. All the feedbacks we have seen are positive. And on the monetization side, I think Philipp has touched upon it. Maybe, Philipp, anything more you want to add there?
Philipp Schindler -- Senior Vice President, Chief Business Officer
Yeah. Yeah. Look, innovation and improvements to the user experience on Search have historically opened up new opportunities for advertisers. We talked about this before.
We saw this when we navigated from desktop to mobile, for example. And we can see gen AI obviously expand the types of questions we can help people with, as Sundar mentioned. And as we said before, people are finding ads, either above or below AI Overviews, helpful. We have a solid baseline here from which we can innovate.
And as you have probably noticed at GML, we announced that soon we'll actually start testing search and shopping ads in AI Overviews for users in the U.S., and they will have the opportunity to actually appear within the AI Overview in a section clearly labeled as sponsored when they're relevant to both the query and the information in the AI Overview, really giving us the ability to innovate here and take this to the next level.
Doug Anmuth -- Analyst
Thank you. Best of luck, Ruth, in your new role.
Ruth Porat -- President and Chief Investment Officer, Chief Financial Officer
Thank you.
Operator
Our next question comes from Michael Nathanson with Moffett. Please go ahead.
Michael Nathanson -- Analyst
Thanks. I have two, one for Sundar and one for Philipp. Sundar, on decision this week to not deprecate cookies. I know it's been a long journey.
Can you talk a bit about what we should expect in terms of your experience in Chrome and why the company makes a decision not to go down the path on deprecating cookies? And then Philipp, I know it's only 1 quarter. It's interesting that Search is growing faster than YouTube, which surprised some of us. But can you talk about what factors you think are behind differences in growth rates between these markets? And is there anything on the AI front that you could see maybe reaccelerating YouTube growth as you've seen happen with Search? Thanks so much.
Sundar Pichai -- Chief Executive Officer
Michael, on cookies, look, I think, obviously, we are super committed to improving privacy for users in Chrome. And there was the whole focus around Privacy Sandbox, and we remain committed on the journey. But on third-party cookies, given the implications across the ecosystems and considerations and feedback across so many stakeholders, we now believe user choice is the best path forward there. And we'll both improve privacy by giving users choice, and we'll continue our investments in privacy-enhancing technologies.
But it's obviously an area we will be taking feedback from the players in the ecosystem, and we are committed to being privacy first as well. Philipp?
Philipp Schindler -- Senior Vice President, Chief Business Officer
And on the second part of your question, maybe, Ruth, you want to jump in first? And then I take the rest, if needed.
Ruth Porat -- President and Chief Investment Officer, Chief Financial Officer
Absolutely. So, look, as we both noted, Search revenues really reflected broad-based growth across verticals. That was led by retail followed by financial services. I think your question really goes to the heart of the year-on-year growth comparison.
And as both Philipp and I noted, we're really pleased with YouTube, the YouTube team, all that was done. It was driven by brand followed by direct response. And they have very strong ongoing operating metrics, which Philipp will comment on. I think the important point to note, and I tried to tease out in opening comments, was that the deceleration in this year-on-year revenue growth for the second quarter versus the first quarter, primarily reflected the tougher comparison versus the first quarter because at that point, as you probably recall, YouTube was lapping negative year-on-year growth in Q1 last year.
And then also Q1 benefited from the extra from leap year. And so, what you're also seeing here is with YouTube, we were anniversary-ing the ramp in APAC-based retailers that began in the second quarter last year and foreign exchange headwinds as well that we noted. There are some timing issues going on. And what we're trying to highlight is the underlying operating strength.
Back to you, Philipp.
Philipp Schindler -- Senior Vice President, Chief Business Officer
Yeah, that was very comprehensive. Nothing really to add from my side here.
Sundar Pichai -- Chief Executive Officer
The only thing I would say, adding to Brian's first question on areas where things are maybe taking longer. I think, look, we are all building multimodal models. At least Gemini has been natively multimodal from the ground up. But most of the use cases today that have been unlocked have been around the tech side.
So, in terms of getting real generative audio, video experience is working well. I think there is still -- it's going to take some time. But over time, obviously, it will be deeply relevant to YouTube. And so, it's an area I'm excited about in the future.
Michael Nathanson -- Analyst
OK. Thanks all and best to you.
Ruth Porat -- President and Chief Investment Officer, Chief Financial Officer
Thanks.
Operator
Your next question comes from Eric Sheridan with Goldman Sachs. Your line is now open.
Eric Sheridan -- Analyst
Thanks so much and I'll echo the thanks for Ruth for all the insights and partnership over the years on these earnings calls. Sundar, maybe first for you. In terms of Cloud and bringing AI to the enterprise, I wanted to know if you go a little bit deeper in terms of how you're seeing AI actually get adopted implemented, what it potentially could mean for the strategic positioning of the Cloud business and the potential for AI workloads to be a stimulant to revenue growth for Cloud first. And then following up the last set of questions on YouTube or really about the macro or the ad environment.
What do you guys, as a team, continue to learn about the subscription side of YouTube and the appetite for consumers to engage with a broader array of media products at the subscription layer? Thanks.
Sundar Pichai -- Chief Executive Officer
Thanks, Eric. Look, on the Cloud and AI stuff, obviously, it's something which I think will end up being a big driver over time. I mentioned in my opening remarks, already, if you take a look at our AI infrastructure and generative AI solutions for cloud across everything we do, be it compute on the AI side, the products we have through Vertex AI, Gemini for Workspace and Gemini for Google Cloud, etc., we definitely are seeing traction. People are deeply engaging with the Gemini models across Vertex and AI studio.
We now have over 2 million developers playing around with these things, and you are definitely seeing early use cases. But I think we are in this phase where we have to deeply work and make sure on these use cases, on these workflows, we are driving deeper progress on unlocking value, which I'm very bullish will happen. But these things take time. But if I were to take a longer-term outlook, I definitely see a big opportunity here.
And I think particularly for us, given the extent to which we are investing in AI, our research infrastructure leadership, all of that translates directly. And so, I'm pretty excited about the opportunity space ahead.
Ruth Porat -- President and Chief Investment Officer, Chief Financial Officer
And then on your second question with respect to subscriptions, implicit in your question, how strong is it. As I noted in opening comments, that overall line subscriptions platforms and devices delivered healthy growth, and that was led by subscriptions. And as we've said on many calls here in a row, the subscription revenue growth continued to be quite strong. It was driven by subscriber growth in both YouTube TV and YouTube Music Premium.
And then the other component within that line is Google One that also delivered strong subscriber and revenue growth. But I think the heart of your question is really around YouTube, and that is the heart of the revenues in that line. So, it continues to be very strong. We see a lot of take-up in it, strong subscriber growth, really pleased with it.
We did note that growth on that line decelerated due to anniversary-ing this YouTube TV price increase. But at the heart of it, our subscribers are people interested in the subscription offerings and is to take significant. We're really pleased with it.
Eric Sheridan -- Analyst
Thank you.
Operator
Our next question comes from Ross Sandler with Barclays. Your line is now open.
Ross Sandler -- Analyst
Hi, everybody. Just two questions on the AI capex. So, it looks like from the outside at least, the hyperscaler industry is going from kind of an underbuilt situation this time last year to better meeting the demand with capacity right now to potentially being overbuilt next year if these capex growth rates keep up. So, do you think that's a fair characterization? And how are we thinking about the return on invested capital with this AI capex cycle? And then related to that, do you think that the AI industry is close to or far away from hitting some kind of wall on foundation model improvement in AI training based on like lack of availability of new data to train on? Just your thoughts on that would be great.
Thank you.
Sundar Pichai -- Chief Executive Officer
Thanks, Ross. I think great questions. Look, obviously, we are at an early stage of what I view as a very transformative area and in technology, when you're going through these transitions, aggressively investing upfront in a defining category, particularly in an area in which in a leveraged way cuts across all our core areas or products, including Search, YouTube, and other services, as well as fuels growth in Cloud and supports the innovative long-term bets and Other Bets is definitely something for us makes sense to lean in. I think the one way I think about it is when we go through a curve like this, the risk of under-investing is dramatically greater than the risk of over-investing for us here, even in scenarios where if it turns out that we are over-investing, we clearly -- these are infrastructure which are widely useful for us.
They have long useful lives, and we can apply it across, and we can work through that. But I think not investing to be at the front here, I think, definitely has much more significant downside. Having said that, we obsess around every dollar we put in. Our teams work super hard.
I'm proud of the efficiency work, be it optimization of hardware, software, model deployment across our fleet. All of that is something we spend a lot of time on, and that's how we think about it. To your second question on how do the scaling laws hold? Are we hitting on some kind of wall or something? Look, I think we are all pushing very hard, and there's going to be a few efforts which will scale up on the compute side and push the boundaries of these models. What I would tell is regardless of how that plays out, I still think there is enough optimizations we are all doing, which is driving constant progress in terms of the capabilities of the models.
And more importantly, taking them and translating into real use cases across the consumer and enterprise side, I think on that frontier, I think there's still a lot of progress to be had. And so, we are pretty focused on that as well.
Ross Sandler -- Analyst
Thank you.
Operator
Our next question comes from Stephen Ju with UBS. Your line is now open.
Stephen Ju -- UBS -- Analyst
OK. Thank you so much. So, Sundar, I guess to ask the AI question a different way, as we talk to some of the model builders out there, it looks like the initial use cases are more on the cost savings or efficiency side. But when do you think we'll start thinking about products that can help revenue generation for the Fortune 500, Fortune 1000 companies, which is probably something that can hopefully create greater value over time versus just cutting costs? And Philipp, listening to what will be, I guess, Ruth's final comments on YouTube on these public calls -- and thank you, by the way, Ruth, for all the help.
I couldn't help but notice that the bigger factors were brand followed by direct response. And if we continue to think that the one you bring up first is the larger factor and tying this into your prior commentary about shopping being an important consideration, when do you think we'll start talking about direct response being a much bigger contributor to YouTube's growth versus brand? Thank you.
Sundar Pichai -- Chief Executive Officer
On the first part of the question, look, I think the technology's horizontal enough, it can apply on both sides. If you take a use case like improving the customer service experience, it is part of it, which is driving efficiencies. And you can look at it from a cost standpoint, but you could also be overall improving the experience, improving conversion, driving the funnel better, and so increasing basket size if you're a retail e-commerce player, etc.. So, we are seeing people experiment across both sides.
And so, I think you will see it play out across both sides. Philipp, on the second one?
Philipp Schindler -- Senior Vice President, Chief Business Officer
Yes. On the second one, look, on the direct response side, as you know, it's about driving and converting commercial intent and customers are obviously benefiting from including video in their AI-powered campaigns. It could be PMax. It could be Demand Gen and obviously using our automated tools to enhance and create video creatives.
And we're very, very optimistic about this path. On average, advertisers who run both image and video ads with Demand Gen campaigns see 6% more conversions per dollar than those running image-only ads and discovery. And this is just one little example of how this can obviously boost your performance business. So, that's a big part.
The brand side, as you know, Google AI continues to make it easier for brands to show up next to the content where viewers are obviously the most engaged. And they're finding it, as you can see from the numbers, a very effective way to drive awareness and consideration. And we're also quite excited about some of the recent launches on YouTube Shopping side, if you want to put that into the direct response bucket.
Stephen Ju -- UBS -- Analyst
OK, thank you.
Operator
And our last question comes from Justin Post with Bank of America. Your line is now open.
Justin Post -- Analyst
Great. I'll ask a couple of areas. First, on the cloud acceleration, would you characterize that as new AI demand helping drive that year to date? Or is that more of a rebound in just general compute and other demand? Or is AI really moving this forward and helping drive acceleration? And then I wanted to ask about your internal cost savings, which has been really strong. How are you using AI internally to help cut costs? Are you seeing better efficiencies with your engineers? And just would love to hear about how you're applying AI to cut your own costs.
Ruth Porat -- President and Chief Investment Officer, Chief Financial Officer
Great. Thank you for that. So, overall, as both Sundar and I said, we're very pleased with the results in Cloud. And there is clearly a benefit as the Cloud team is engaging broadly with customers around the globe with AI-related solutions, AI infrastructure solutions and generative AI solutions.
I think we noted that we're particularly encouraged that the majority of our top 100 customers are already using our generative AI solution. So, it is clearly adding to the strength of the business on top of all that they're doing. And just to be really clear, the results for GCP, the growth rate for GCP is above the growth for Cloud overall. And then, I'll turn it to Sundar on the cost saving point, but just one point.
We're really pleased as well that Cloud's margin improved as it did. And in part, that reflects the revenue strength that they delivered and all of the efficiency efforts that I've already spoken about. But looking ahead in Q3, we do expect the same seasonal pattern that you saw last year with respect to margin, and we are continuing to invest in the business.
Sundar Pichai -- Chief Executive Officer
Look, I think specifically, if the question is about engineers and coding, etc., we definitely want to be on the cutting edge there. I think we are making these tools available to some of the most productive engineers and demanding engineers out there, and they are definitely kicking the tires hard. But I would say it's still all in very early stages, I think, particularly when it comes to writing high-quality secure code. But I think all the learnings, what we are gaining here will translate into our models and products, and that's the virtuous cycle which I'm excited by.
So, there's a lot more to come.
Justin Post -- Analyst
Great. Thank you.
Operator
Thank you. 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 -- Director, Investor Relations
Thanks, everyone, for joining us today. We look forward to speaking with you again on our third quarter 2024 call. Thank you, and have a good evening.
Operator
[Operator signoff]
Duration: 0 minutes
Call participants:
Jim Friedland -- Director, Investor Relations
Sundar Pichai -- Chief Executive Officer
Philipp Schindler -- Senior Vice President, Chief Business Officer
Ruth Porat -- President and Chief Investment Officer, Chief Financial Officer
Brian Nowak -- Analyst
Doug Anmuth -- Analyst
Michael Nathanson -- Analyst
Eric Sheridan -- Analyst
Ross Sandler -- Analyst
Stephen Ju -- UBS -- Analyst
Justin Post -- Analyst
