Alphabet (parent company of Google) today released the company's financial results for the third quarter of fiscal year 2023 ending September 30. According to the report, Alphabet's total revenue for the third quarter was 76.693 billion US dollars, up 11% compared to 69.092 billion US dollars in the same period last year, and the impact of exchange rate changes was also 11% year-on-year; according to US GAAP, Alphabet's net profit for the third quarter was 19.689 billion US dollars, an increase of 42% compared with 13.91 billion US dollars in the same period last year; diluted earnings per share were 1.55 US dollars, compared to $1.06 billion per diluted share for the same period last year.

After the results were announced,Alphabet CEO Sundar Pichai (Sundar Pichai), CFO Ruth Porat (Ruth Porat), and Chief Brand Officer Philipp Schindler (Philipp Schindler)An analyst conference call was held to answer business-related questions.

Here's a summary of analysts' conference call responses:

Morgan Stanley Analyst Brian Nowak:Many investors have discussed the issue of increasing the return on capital investment in the search business through the use of artificial intelligence technology. I know that the development of the company's search generative experience (SGE) Bard business is still in its early stages. Can you ask management to introduce some relevant cases that show how the service has improved usage, revenue conversion rate, and user engagement? On another question, the management also mentioned how to scientifically manage costs, including how to promote a plan to achieve a lower cost growth rate than revenue growth next year. Has this plan changed?

　Ruth Borat:Your goals in terms of costs are indeed also the direction of our efforts. Keeping revenue growth higher than expenditure growth and the driving force behind the company's sustainable development is also the focus of our work, especially the changes that artificial intelligence technology can bring us.

Sundar Pichai:Artificial intelligence is a fundamental technological transformation, and the driving force for the growth of all businesses is obvious. The first to use this technology was the company's search business. Currently, users' feedback on SGE is still very good. More and more users are starting to access this service, and the results are constantly improving, which also helps improve the company's ecosystem and business transition.In the next ten years, artificial intelligence and search assistants are all very important development opportunities for us, and the company will continue to invest in improving the user experience. I believe future value will have concrete performance. Over time, we are also likely to see new business models, including the application of subscription models in the Youtube business. We are also using artificial intelligence technology in our cloud business, and management is very optimistic about this.

J.P. Morgan analyst Doug Anmuth:Sundar, you're very focused on the AI business. Can you introduce the company's artificial intelligence project “Gemini” (Gemini) and how to differentiate it from other models? What is the release schedule for multi-model functionality and unlocking new experiences? Another question is about the cloud business, what are the prospects for digital optimization opportunities? Are there any new signs of growth in terms of new workload deployments?

Sundar Pichai:I am very satisfied with the current progress of the collaboration project between Google and DeepMind on Gemini. The project is also progressing gradually. More importantly for me,This is the basis for the next model series to be launched next year.The pace of innovation is very fast. We started from the basics, developed into multi-model, efficient tools, integrated application programming (API), and created a platform for future innovation. Gemini's R&D will meet customer needs for various scales and functions, and will immediately be invested in all internal products to be provided to developers and cloud customers through Google's machine learning platform Vertex. The product will continue to iterate, we will definitely continue to invest, and the early results have been very good.

When it comes to cloud business questions, in general, customers are always looking to optimize their spending, so we're doing our best to help them overcome their challenges. Customers are keenly interested in artificial intelligence, and we also have many projects in progress. At Vertex alone, the number of cooperation projects with our customers has increased more than 7 times. We have also seen signs of stability, so management is optimistic about future developments.

(Continuously updated...)