Google Cloud reported $9.2 billion in revenue last quarter, beating analyst expectations. What’s more, in just 90 days its revenue backlog increased by staggering 📈 $9Bn in cloud commits (+14%).
CEO Sundar Pichai proudly shared “With ISVs, we have nearly tripled the number of Co-sell deals from 2022 to 2023” as GCP growth re-accelerated to 28% from the previous quarter. Let’s take a look.
Pichai highlighted strong performance and demand of Google Cloud: “Full-year revenues of $33 billion were up 26% versus prior year, ending with strong Q4 performance. … The strong demand we are seeing for our vertically integrated AI portfolio is creating new opportunities for Google Cloud across every product area.”
Not only GCP crossed $9Bn in quarterly revenues, it has transformed into a profit-generating powerhouse with operating income turning from a $186M loss to $864M profit in just one year.
💰 Google Cloud's commits surge
This quarter's commits: $74.1Bn
Last quarter's commits: $64.9Bn
Growth: +$9.1 billion (+14%)
“As of December 31, 2023, we had $74.1 billion of remaining performance obligations (“revenue backlog”), primarily related to Google Cloud…. We expect to recognize approximately half of the revenue backlog as revenues over the next 24 months with the remaining to be recognized thereafter. ” shared the company
With commits surging significantly in the last 90 days, GCP now essentially has the next 2 years of revenue pre-booked - a clear indicator of sustained customer confidence.
🤝 Google Cloud is leaning on AI and its ecosystem to drive its growth
GCP CEO underscored the role of its partners and co-selling in driving the numbers:
“Our robust growth has been driven by strong direct and indirect channels. With ISVs, we have nearly tripled the number of Co-sell deals from 2022 to 2023. In our ecosystem, there are nearly 90,000 Google Cloud gen AI-enabled consultants…”
✨The focus on AI is a particularly strong driver
GCP introduced thousands of product advances, including broad gen AI capabilities across AI infrastructure, Vertex AI platform, and new Duet AI agents.
Sundar Pichai highlighted a 6X increase in Vertex AI API adoption and 1M+ testers of Duet AI:
“In Q4, our product and gen AI leadership enabled us to win and expand relationships with many leading brands, including Hugging Face, McDonald's, Motorola Mobility, and Verizon ….For developers building gen AI applications, we offer Vertex AI, a comprehensive enterprise AI platform… Vertex AI has seen strong adoption with API requests increasing nearly six times from H1 to H2 last year….
Customers are increasingly choosing Duet AI...Since its launch, thousands of companies and more than a million trusted testers have used Duet AI…”
__________
📈 Accelerate your Growth in Cloud Marketplaces
Transform your marketplace strategy with first-hand insights from Cloud GTM leaders in our 5-week cohort course. Learn in a community of great alliance leaders. Join 100+ alums from companies like GitLab, Darktrace, IDC and others.
Comments