Alphabet Inc.

Welcome, everyone. Thank you for standing by for the Alphabet First Quarter 2025 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. To ask a question during the session, you will need to press Store 1 on your telephone. I would now like to hand the conference over to your speaker today, Jim Friedland. Senior Director of Investor Relations. Please go ahead.

Thank you. Good afternoon, everyone, and welcome to Alphabet's first quarter 2025 earnings conference call. With us today are Sundar Pichai, Philip Schindler, and Anat Ashkenazi. 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 forms 10-K and 10-Q, including the risk factors. 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 forward slash investor. Our comments will be on year-over-year comparisons unless we state otherwise. And now, I'll turn the call over to Sundar.

Thanks, Jim. Good afternoon, everyone. We are pleased with our strong results this quarter. We continue to see healthy growth and momentum across the business, including AI powering new features. In search, we saw continued double-digit revenue growth. AI overviews is going very well with over 1.5 billion users per month, and we are excited by the early positive reaction to AI mode. There's a lot more to come ahead. In subscriptions, we surpassed 270 million subscriptions with YouTube and Google One as key drivers. And cloud grew rapidly with significant demand for our solutions, and you saw our leadership in AI at Cloud Next across infrastructure, agents, and more. Our differentiated, full-stack approach to AI continues to be central to our growth. This quarter was super exciting as we rolled out Gemini 2.5, our most intelligent AI model, which is achieving breakthroughs in performance, and it's widely recognized as the best model in the industry. That's an extraordinary foundation for our future innovation, and we are focused on bringing this to people and customers everywhere. Looking ahead to I.O., Brandcast, and Google Marketing Live, I can't wait for our teams to showcase the innovations they've been working on. turning to our AI progress this quarter, which continues to enable significant growth opportunities. The elements of the AI stack I've previously mentioned are AI infrastructure, world-class research, including models and tooling, and our products and platforms. Starting with AI infrastructure, our long-term investments in our global network have positioned us well. Google's network is robust and resilient, supported by over 2 million miles of fiber and 33 subsea cables. Complementing this, we offer the industry's widest range of TPUs and GPUs and continue to invest in next-generation capabilities. Ironwood, our seventh-generation TPU and most powerful to date, is the first designed specifically for inference at scale. It delivers more than 10x improvement in compute power over a recent high-performance TPU while being nearly twice as power efficient. A strong relationship with NVIDIA continues to be a key advantage for us and our customers. We were the first cloud provider to offer NVIDIA's groundbreaking B200 and GB200 Blackwell GPUs and will be offering their next-generation Vera Rubin GPUs. Second, this infrastructure powers our world-class research, including our industry-leading models. We released Gemini 2.5 Pro last month, receiving extremely positive feedback from both developers and consumers. 2.5 Pro is state of the art on a wide range of benchmarks and debuted at number one on the chatbot arena by a significant margin. 2.5 Pro achieved big leaps in reasoning, coding, science, and math capabilities, opening up new possibilities for developers and customers. Active users in AI Studio and Gemini API have grown over 200% since the beginning of the year. And last week, we introduced 2.5 Flash, which enables developers to optimize quality and cost. Our latest image and video generation models, Imagine 3 and VO2, are rolling out broadly and are powering incredible creativity. Turning to open models, we launched Gemma 3 last month, delivering state-of-the-art performance for its size. Gemma models have been downloaded more than 140 million times. Lastly, we are developing AI models in new areas where there's enormous opportunity. For example, our new Gemini robotics models. And in health, we launched AI co-scientist, a multi-agent AI research system, while AlphaFold has now been used by over 2.5 million researchers. Third, turning to products and platforms. All 15 of our products with a half a billion users now use Gemini models. Android and Pixel are two examples of how we are putting the best AI in people's hands, making it super easy to use AI for a wide range of tasks just by using their camera, voice, or taking a screenshot. We are upgrading Google Assistant on mobile devices to Gemini, and later this year, we'll upgrade tablets, cars, and devices that connect to your phone, such as headphones and watches. The Pixel 9a launched to very strong reviews, providing the best of Google's AI offerings, like Gemini Live and AI-powered camera features. And Gemini Live camera and screen sharing is now rolling out to all Android devices, including Pixel and Samsung S25. Now moving on to key highlights from across Search, Cloud, YouTube, and Waymo. First, Search. AI is one of the most revolutionary technologies for enabling and expanding our information mission. And for Search, we see it growing the number and types of questions we can answer. We are already seeing this with AI overviews, which now has more than 1.5 billion users every month. Nearly a year after we launched AI overviews in the U.S., we continue to see that usage growth is increasing as people learn that search is more useful for more of their queries. So we are leaning in heavily here, continuing to roll the feature out in new countries to more users and to more queries. Building on the positive feedback for AI overviews, in March we released AI Mode, an experiment in labs. It expands what AI overviews can do with more advanced reasoning, thinking, and multimodal capabilities to help with questions that need further exploration and comparisons. On average, AI Mode queries are twice as long as traditional search queries. We're getting really positive feedback from early users about its design, fast response time, and ability to understand complex nuanced questions. We also continue to see significant growth in multimodal queries. Circle to search is now available on more than 250 million devices with usage increasing nearly 40% this quarter. And monthly visual searches with lens have increased by 5 billion since October. Moving on to cloud. At Cloud Next, we announced major innovations, and over 500 companies shared the business results they are achieving by working with us. We provide leading cost, performance, and reliability for AI training and inference. This enables us to deliver the best value for AI leaders, like any scale and contextual AI, as well as global brands like Verizon. And for highly sensitive data and regulatory requirements, Google distributed cloud and our sovereign AI make Gemini available on premises or in country. Our Vertex AI platform makes over 200 foundation models available, helping customers like Lowe's integrate AI. We offer industry-leading models, including Gemini 2.5 Pro, 2.5 Flash, Imagine 3, VO2, Chirp, and Lyria, plus open-source and third-party models like Lama 4 and Anthropic. We are the leading cloud solution for companies looking to the new era of AI agents, a big opportunity. Our Agent Development Kit is a new open source framework to simplify the process of building sophisticated AI agents and multi-agent systems. And Agent Designer is a low-code tool to build AI agents and automate tasks in over 100 enterprise applications and systems. We are putting AI agents in the hands of employees at major global companies like KPMG. With Google Agent Space, employees can find and synthesize information from within their organization, converse with AI agents, and take action with their enterprise applications. It combines enterprise search, conversational AI or chat, and access to Gemini and third-party agents. We also offer prepackaged agents across customer engagement, coding, creativity, and more that are helping to provide conversational customer experiences, accelerate software development, and improve decision-making. And of course, Google Workspace. It delivers more than 2 billion AI assists monthly, including summarizing Gmail and refining docs. Lastly, our cybersecurity products are helping organizations detect, investigate, and respond to cybersecurity threats. Our expertise coupled with integrated Gemini AI advances, detects malware, prioritizes threats, and speeds up investigative workflows. This quarter, we were excited to announce our intent to acquire WIS, a leading cloud security platform that protects all major clouds and code environments. Together, we can make it easier and faster for organizations of all types and sizes to protect themselves end-to-end and across all major clouds. We think this will help spur more multi-cloud computing, something customers want. Next, YouTube. Yesterday marked a historic milestone, the 20th anniversary of the first video uploaded to YouTube. From that single 19-second upload, the platform has grown into a global phenomenon, fundamentally changing how billions of people create, share, and experience content. Through all this growth, subscriptions are now a big part of the business. We continue to diversify subscription options, recently expanding our Premium Lite Pilot to the US, giving users a new way to enjoy most videos on YouTube ad-free. TV is the primary device for YouTube viewing in the US. According to Nielsen, YouTube has been number one in streaming watch time in the US for the last two years. And YouTube now has over 1 billion monthly active podcast users. YouTube Music and Premium reached over 125 million subscribers, including trials globally. And finally, Waymo is now safely serving over a quarter of million paid passenger trips each week. That's up 5X from a year ago. This past quarter, Waymo opened up paid service in Silicon Valley. Through our partnership with Uber, we expanded in Austin and are preparing for our public launch in Atlanta later this summer. We recently announced Washington, D.C. as a future ride-hailing city, going live in 2026 alongside Miami. Waymo continues progressing on two important capabilities for riders, airport access and freeway driving. Thanks to all of our employees for their work this quarter. It was a great start to the year, and Q2 will be even more exciting. With that, Philip, over to you.