[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]  Jukan [@Jukanlosreve](/creator/twitter/Jukanlosreve) on x 22.6K followers Created: 2025-07-23 23:23:13 UTC Alphabet (GOOGL US EQUITY) FY2Q25 Conference Call ▶️ Key Comments At I/O on May 20th, disclosed XXX trillion tokens used in April (50x increase YoY). This number has since doubled, now processing XXX trillion tokens monthly. Search Recorded double-digit revenue growth (+7% QoQ, +12% YoY). New features like AI Overviews, Circle to Search, and Lens are preventing user churn. Subscription YouTube and subscription services also showed strong momentum, reflecting robust performance. Gemini MAU (Monthly Active Users) reached XXX million, with daily requests increasing by over XX% compared to Q1. GCP Recovered to +32% after a slight slowdown to +28% last quarter. Annual revenue run rate exceeds $50B. Google Cloud's backlog increased by XX% QoQ and XX% YoY, reaching $106B at quarter-end. Supply is still expected to remain tight relative to demand until 2026. Capex Capex forecast raised from the previous $75B to approximately $85B. ▶️Q&A Q: Do you anticipate changes in the traditional long-standing methods related to clicks and click monetization over the next 3-5 years? A: All indicators we are seeing suggest that people are very positive about AI. AI is being well-received across all products. For example, people are already actively using the image-based Circle to Search feature in multimodality. Q: What are your thoughts on the mix between advertising and subscriptions? A: We have a very deep understanding of our monetization strategies for both advertising and subscriptions. We plan to continue aggressively pursuing this dual strategy. Q: How should we understand the contribution of cost per click and click volume growth to the XX% growth? A: Paid clicks increased by X% YoY. Some policy changes are leading to a decrease in click volume but are favorable for monetization. Q: You mentioned a $10B increase in Capex and supply shortages simultaneously. How should this be understood? A: While additional investments are being executed, it takes time for them to translate into actual capacity expansion. Q: In conversations with engineering teams developing agentic capabilities, what are the biggest technical hurdles? A: Currently, during the experimental process, reducing latency, optimizing costs, and maintaining user trust are challenging. We expect agentic-based experiences to be more widely used by 2026. Q: What are the efficiency gains from using internal Gen AI tools? Are they better than before? A: Many agents are being utilized in actual workflows, and previously friction-filled experiences are gradually improving. Q: What is the difference in user behavior between AI mode and the standalone Gemini app? A: AI mode and the standalone Gemini app are optimized for different use cases. AI mode is very powerful when focusing on information retrieval and seeking accurate, information-based responses, whereas Gemini's queries vary from psychological counseling to conversational. Q: How is Google currently responding to attracting and retaining AI talent? A: We have invested deeply in AI talent over a long period and currently boast a very competitive position in the AI talent pool, possessing both breadth and depth. The factors top talent values most are: 1) conducting meaningful research on the front lines, 2) access to abundant computing resources, and 3) an environment for collaboration with industry-leading colleagues. Q: Given that Click-Through Rate (CTR) has been a key driver of monetization in Search, can CTR be maintained in an environment where ad impressions per SERP (Search Engine Results Page) decrease due to the introduction of AI Overviews and new AI formats? A: User satisfaction continues to increase, and the number of search users is also growing. From a monetization perspective, we see AI Overviews yielding nearly the same level of monetization performance as the traditional search experience. Q: There have been reports about collaboration between OpenAI and Google Cloud. In what direction can this partnership expand in the future? A: The collaboration with OpenAI is a very encouraging partnership from Google Cloud's perspective. We hope to further strengthen and grow it. Q: Is the advertising environment in the second half of the year more uncertain or more stable compared to last year? A: It's early in Q3, so it's premature to give specific comments for the entire second half, but currently, there are no particular concerns. Q: Why are you pursuing both AI Mode and Gemini instead of moving to a unified, integrated search experience? A: Because the two platforms can broadly and deeply cover the entire spectrum of human information consumption behavior. Search is information-centric, while Gemini is focused on being a personal assistant. It's closer to an everyday helper. Over time, we will allow users to integrate functionalities from both interfaces without complex choices. In the past, text, image, and video search were separate. We have experience integrating them through Universal Search. Q: What is the outlook for the Cloud segment in the second half? Last quarter you mentioned resolving supply constraints by end of 2025, but today you are talking about supply constraints until 2026. Can you explain the change in outlook? A: Current growth rates are a result of past Capex execution, and cloud growth is not linear. Growth can continue to vary quarter by quarter. Q: How are subscription services related to Gemini growing, and what is the growth strategy? A: The past quarter was a period of very healthy growth for AI-based subscription services, and the future outlook is very encouraging. Q: How do you assess the ROI on CapEx investment in the Cloud segment? A: As the Cloud customer base expands, operational efficiency gradually increases. Churn rates also decrease. This structure allows for greater revenue generation with the same cost. The Cloud segment has shown a strong trend of improving operating margins over the past few years. XXXXX engagements  **Related Topics** [coins ai](/topic/coins-ai) [quarterly earnings](/topic/quarterly-earnings) [doubled](/topic/doubled) [googl](/topic/googl) [Post Link](https://x.com/Jukanlosreve/status/1948162014024798613)
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Jukan @Jukanlosreve on x 22.6K followers
Created: 2025-07-23 23:23:13 UTC
Alphabet (GOOGL US EQUITY) FY2Q25 Conference Call
▶️ Key Comments
At I/O on May 20th, disclosed XXX trillion tokens used in April (50x increase YoY).
This number has since doubled, now processing XXX trillion tokens monthly.
Search
Recorded double-digit revenue growth (+7% QoQ, +12% YoY).
New features like AI Overviews, Circle to Search, and Lens are preventing user churn.
Subscription
YouTube and subscription services also showed strong momentum, reflecting robust performance.
Gemini MAU (Monthly Active Users) reached XXX million, with daily requests increasing by over XX% compared to Q1.
GCP
Recovered to +32% after a slight slowdown to +28% last quarter.
Annual revenue run rate exceeds $50B. Google Cloud's backlog increased by XX% QoQ and XX% YoY, reaching $106B at quarter-end. Supply is still expected to remain tight relative to demand until 2026.
Capex
Capex forecast raised from the previous $75B to approximately $85B.
▶️Q&A
Q: Do you anticipate changes in the traditional long-standing methods related to clicks and click monetization over the next 3-5 years?
A: All indicators we are seeing suggest that people are very positive about AI. AI is being well-received across all products. For example, people are already actively using the image-based Circle to Search feature in multimodality.
Q: What are your thoughts on the mix between advertising and subscriptions? A: We have a very deep understanding of our monetization strategies for both advertising and subscriptions. We plan to continue aggressively pursuing this dual strategy.
Q: How should we understand the contribution of cost per click and click volume growth to the XX% growth? A: Paid clicks increased by X% YoY. Some policy changes are leading to a decrease in click volume but are favorable for monetization.
Q: You mentioned a $10B increase in Capex and supply shortages simultaneously. How should this be understood? A: While additional investments are being executed, it takes time for them to translate into actual capacity expansion.
Q: In conversations with engineering teams developing agentic capabilities, what are the biggest technical hurdles? A: Currently, during the experimental process, reducing latency, optimizing costs, and maintaining user trust are challenging. We expect agentic-based experiences to be more widely used by 2026.
Q: What are the efficiency gains from using internal Gen AI tools? Are they better than before? A: Many agents are being utilized in actual workflows, and previously friction-filled experiences are gradually improving.
Q: What is the difference in user behavior between AI mode and the standalone Gemini app? A: AI mode and the standalone Gemini app are optimized for different use cases. AI mode is very powerful when focusing on information retrieval and seeking accurate, information-based responses, whereas Gemini's queries vary from psychological counseling to conversational.
Q: How is Google currently responding to attracting and retaining AI talent? A: We have invested deeply in AI talent over a long period and currently boast a very competitive position in the AI talent pool, possessing both breadth and depth. The factors top talent values most are: 1) conducting meaningful research on the front lines, 2) access to abundant computing resources, and 3) an environment for collaboration with industry-leading colleagues.
Q: Given that Click-Through Rate (CTR) has been a key driver of monetization in Search, can CTR be maintained in an environment where ad impressions per SERP (Search Engine Results Page) decrease due to the introduction of AI Overviews and new AI formats? A: User satisfaction continues to increase, and the number of search users is also growing. From a monetization perspective, we see AI Overviews yielding nearly the same level of monetization performance as the traditional search experience.
Q: There have been reports about collaboration between OpenAI and Google Cloud. In what direction can this partnership expand in the future? A: The collaboration with OpenAI is a very encouraging partnership from Google Cloud's perspective. We hope to further strengthen and grow it.
Q: Is the advertising environment in the second half of the year more uncertain or more stable compared to last year? A: It's early in Q3, so it's premature to give specific comments for the entire second half, but currently, there are no particular concerns.
Q: Why are you pursuing both AI Mode and Gemini instead of moving to a unified, integrated search experience? A: Because the two platforms can broadly and deeply cover the entire spectrum of human information consumption behavior. Search is information-centric, while Gemini is focused on being a personal assistant. It's closer to an everyday helper. Over time, we will allow users to integrate functionalities from both interfaces without complex choices. In the past, text, image, and video search were separate. We have experience integrating them through Universal Search.
Q: What is the outlook for the Cloud segment in the second half? Last quarter you mentioned resolving supply constraints by end of 2025, but today you are talking about supply constraints until 2026. Can you explain the change in outlook? A: Current growth rates are a result of past Capex execution, and cloud growth is not linear. Growth can continue to vary quarter by quarter.
Q: How are subscription services related to Gemini growing, and what is the growth strategy? A: The past quarter was a period of very healthy growth for AI-based subscription services, and the future outlook is very encouraging.
Q: How do you assess the ROI on CapEx investment in the Cloud segment? A: As the Cloud customer base expands, operational efficiency gradually increases. Churn rates also decrease. This structure allows for greater revenue generation with the same cost. The Cloud segment has shown a strong trend of improving operating margins over the past few years.
XXXXX engagements
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