DoNews reported on April 26 that Alphabet Inc., the parent company of Google, released its latest quarterly financial report on Thursday. The company’s revenue in the first quarter of this year was US$80.54 billion (currently about 583.915 billion yuan), a year-on-year increase of 15%, exceeding Wall Street analysts such as FactSet Research. It is expected that revenue will accelerate for four consecutive quarters.
Alphabet also disclosed plans to pay a quarterly dividend to shareholders of 20 cents per share on June 17, the first time since Google went public 20 years ago.
Alphabet earned $23.66 billion, or $1.89 per share, a 57% increase from the same period last year. Earnings per share also exceeded analyst expectations that guided investors. The company’s shares surged nearly 13% in after-hours trading on Thursday after the news broke.
Main achievement:
——Alphabet’s total revenue in the first quarter was US$80.539 billion, an increase of 15% compared with US$69.787 billion in the same period last year. Excluding the impact of exchange rate changes, it was a year-on-year increase of 16%. Alphabet calculates total revenue in accordance with U.S. GAAP, without deducting traffic acquisition costs (TAC). Alphabet’s total traffic acquisition costs in the first quarter, that is, revenue shared with partners, were US$12.946 billion, an increase from US$11.721 billion in the same period last year;
——According to U.S. GAAP, Alphabet’s operating profit in the first quarter was US$25.472 billion, accounting for 32% of total revenue (i.e. operating profit margin). According to U.S. GAAP, Alphabet’s operating profit for the same period last year was US$17.415 billion, accounting for 25% of total revenue;
——According to U.S. GAAP, Alphabet’s net profit in the first quarter was US$23.662 billion, an increase of 57% compared with US$15.051 billion in the same period last year;
——In accordance with U.S. GAAP, Alphabet’s diluted earnings per share in the first quarter were US$1.89, an increase compared with US$1.17 in the same period last year. The total number of outstanding shares of Alphabet used to calculate diluted earnings per share in the first quarter was 12.527 billion shares, a decrease from 12.823 billion shares in the same period last year.
Results compared to analyst expectations:
Alphabet’s total revenue in the first quarter was US$80.539 billion, which exceeded analysts’ previous expectations. According to data provided by the Yahoo Finance website, 32 analysts had previously expected Alphabet’s first-quarter revenue to reach $73.42 billion on average.
Alphabet’s diluted earnings per share in the first quarter were $1.89, which also exceeded analysts’ expectations. According to data provided by the Yahoo Finance website, 35 analysts had previously expected Alphabet to earn $1.41 per share in the first quarter.
Alphabet also announced its first dividend plan in the company’s history in its earnings report. The plan shows that Alphabet’s board of directors has approved the launch of a cash dividend plan and announced that it will distribute $0.20 per share on June 17, 2024 to shareholders of Class A, Class B and Class C shares registered as of June 10, 2024. of cash dividends. Alphabet also said it plans to pay cash dividends each quarter going forward, subject to review and approval at the sole discretion of the company’s board of directors.
Additionally, Alphabet’s board of directors has authorized the company to repurchase up to an additional $70 billion of Class A and Class C shares in a manner consistent with the best interests of the company and its shareholders.
Affected by this, Alphabet’s stock price rose nearly 13% in after-hours trading in the New York market after the release of the financial report, making the company’s market value exceed US$2 trillion.
financial analysis:
Alphabet’s total revenue in the first quarter was US$80.539 billion, an increase of 15% compared with US$69.787 billion in the same period last year. If exchange rates were flat year-over-year (excluding gains related to the foreign exchange risk management plan), Alphabet’s first-quarter revenue would have grown 16% year-over-year.
——According to business division:
Alphabet’s Google unit’s Google search and other business revenue in the first quarter was US$46.156 billion, an increase from US$40.359 billion in the same period last year; YouTube advertising business revenue was US$8.090 billion, compared with US$6.693 billion in the same period last year. The U.S. dollar achieved growth compared to analysts’ expectations. Analysts had on average expected YouTube advertising business revenue to reach $7.722 billion in the first quarter, according to data provided by analytics firm StreetAccount.
Alphabet’s Google unit’s first-quarter online revenue, which is revenue generated by Google’s partner websites through the AdSense program, was $7.143 billion, roughly the same as $7.496 billion in the same period last year.
Alphabet’s Google unit’s first-quarter advertising revenue (that is, the sum of revenue from all the above businesses) was US$61.659 billion, an increase from US$54.548 billion in the same period last year.
Other revenue for Alphabet’s Google unit in the first quarter was $8.739 billion, an increase from $7.413 billion in the same period last year.
The total service revenue of Alphabet’s Google unit in the first quarter (that is, the total revenue of the above businesses) was US$70.398 billion, an increase from US$61.961 billion in the same period last year.
Alphabet’s Google unit’s Google Cloud business revenue in the first quarter was US$9.574 billion, an increase from US$7.454 billion in the same period last year, exceeding analyst expectations. According to data provided by the analysis company StreetAccount, analysts had on average expected Google Cloud business revenue to reach US$9.35 billion in the first quarter.
Alphabet’s “Other Bets” business revenue in the first quarter was US$495 million, an increase from US$288 million in the same period last year.
Alphabet’s first-quarter hedging gains were $72 million, down from $84 million in the same period a year earlier.
——By region:
Alphabet’s revenue from the United States in the first quarter was US$38.737 billion, an increase of 18% compared with US$32.864 billion in the same period last year, but a decrease of 8% compared with US$41.995 billion in the previous quarter.
Alphabet’s revenue from the EMEA (Europe, Middle East and Africa) region in the first quarter was US$23.788 billion, an increase of 13% compared with US$21.078 billion in the same period last year, but a decrease of 5% compared with US$25.010 billion in the previous quarter. %. Not in accordance with U.S. GAAP (excluding the impact of exchange rate changes), calculated based on the exchange rate in the first quarter of 2023, Alphabet’s revenue from the EMEA region in the first quarter was US$23.584 billion, a year-on-year increase of 12%; based on 2023 In terms of exchange rates in the fourth quarter, Alphabet’s revenue from the EMEA region in the first quarter was US$23.428 billion, a 6% decrease from the previous quarter.
Alphabet’s revenue from the Asia-Pacific region in the first quarter was US$13.289 billion, an increase of 14% compared with US$11.681 billion in the same period last year, but a decrease of 5% compared with US$13.979 billion in the previous quarter. Not in accordance with U.S. GAAP (excluding the impact of exchange rate changes), calculated based on the exchange rate in the first quarter of 2023, Alphabet’s revenue from the Asia-Pacific region in the first quarter was US$13.728 billion, a year-on-year increase of 18%; based on the exchange rate in the first quarter of 2023 In terms of fourth-quarter exchange rates, Alphabet’s revenue from the Asia-Pacific region in the first quarter was US$13.204 billion, a 6% decrease from the previous quarter.
Alphabet’s revenue from the rest of the Americas in the first quarter was US$4.653 billion, an increase of 14% compared with US$4.080 billion in the same period last year, but a decrease of 10% compared with US$5.176 billion in the previous quarter. Not in accordance with U.S. GAAP (excluding the impact of exchange rate changes), calculated based on the exchange rate in the first quarter of 2023, Alphabet’s revenue from the rest of the Americas in the first quarter was US$4.805 billion, a year-on-year increase of 18%; based on the exchange rate in the first quarter of 2023 Calculating the exchange rate in the fourth quarter of this year, Alphabet’s revenue from the rest of the Americas in the first quarter was US$4.725 billion, a 9% decrease from the previous quarter.
Alphabet’s total traffic acquisition costs in the first quarter, that is, revenue shared with partners, were US$12.946 billion, an increase from US$11.721 billion in the same period last year, exceeding analyst expectations. Analysts on average had expected Alphabet’s total traffic acquisition costs to reach $12.74 billion in the first quarter, according to data provided by analytics firm StreetAccount.
Alphabet’s total costs and expenses in the first quarter were US$55.067 billion, an increase from US$52.372 billion in the same period last year. Among them, Alphabet’s revenue cost in the first quarter was US$33.712 billion, an increase compared with US$30.612 billion in the same period last year; R&D expenditure was US$11.903 billion, an increase compared with US$11.466 billion in the same period last year; sales and marketing expenses were US$6.426 billion, a decrease compared with US$6.533 billion in the same period last year; general and administrative expenses were US$3.026 billion, a decrease compared with US$3.759 billion in the same period last year.
Alphabet’s other income (net) in the first quarter was US$2.843 billion, a significant increase from other income (net) of US$790 million in the same period last year.
According to U.S. GAAP, Alphabet’s operating profit in the first quarter was US$25.472 billion, accounting for 32% of total revenue (i.e. operating profit margin). According to U.S. GAAP, Alphabet’s operating profit in the same period last year was US$17.415 billion, accounting for 25% of total revenue.
Broken down by department, Alphabet’s Google Services unit had an operating profit of US$27.897 billion in the first quarter, an increase compared with US$21.737 billion in the same period last year; the first quarter operating profit of the Google Cloud unit was US$900 million, an increase from US$21.737 billion in the same period last year. Operating profit increased significantly from US$191 million; the operating loss of the Other Bets business in the first quarter was US$1.020 billion, which narrowed compared with the operating loss of US$1.225 billion in the same period last year; unallocated corporate expenses in the first quarter were US$23.05 billion, a decrease from US$3.288 billion in the same period last year.
According to U.S. GAAP, Alphabet’s first-quarter net profit was US$23.662 billion, an increase of 57% compared with US$15.051 billion in the same period last year;
In accordance with U.S. GAAP, Alphabet’s diluted earnings per share in the first quarter were $1.89, an increase from $1.17 in the same period last year. The total number of outstanding shares of Alphabet used to calculate diluted earnings per share in the first quarter was 12.527 billion shares, a decrease from 12.823 billion shares in the same period last year.
Alphabet’s cash flow from business operating activities in the first quarter was US$28.848 billion; excluding US$12.012 billion used to purchase property and equipment, Alphabet’s free cash flow in the first quarter was US$16.836 billion.
As of March 31, 2024, the total value of cash and cash equivalents held by Alphabet was US$24.493 billion, compared with US$25.924 billion as of March 31, 2023, a year-on-year decrease.
As of March 31, 2024, Alphabet employed a total of 180,895 full-time employees worldwide, compared with 190,711 as of March 31, 2023, a year-on-year decrease.
Tags: Google parent company Alphabet announced financial results revenue US80 .5 billion DoNews
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