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Alphabet Announces Third Quarter 2019 Results
- chollida1 7y agoHaven't posted one of these in a while Numbers: - 3Q Operating Income $9.18B, Est. $9.45B - 3Q Revenue $33.01B, Est. $32.72B - 3Q EPS $10.12, Est. $12.35, pretty darn big miss, Porat dropped a pretty big ball here - CapEx up 26% yoy - headcount up to 114K from 94K a yaer ago - Other Bets revenue is $155 million, up 6% - Other Bets losses is $941 million, up 29% Adds: - paid clicks are up 18% vs 32% last year - Porat pointed to two main issues on revenue - legal settlement with France - losses from venture investments, not stated what and why, did clarify that the loss is unrealized and they gave back $227 in performance fees!!!!!! - Porat didnt' talk about fitbit rumors, though given that FIT is up 30% I don't think she needs to say anything - nothing on China - Google is now one of the largest spenders on lobbying goverment, They must take Warren seriously
- NiekvdMaas 7y agoSomething else that's interesting is the doubling of the effective tax rate from 9% to 18% yoy. Is there any explanation for that?
- kgwgk 7y agoLast year it was abnormally low: “Our provision for income taxes and effective tax rate decreased from the three months ended September 30, 2017 to the three months ended September 30, 2018. The decrease is primarily due to the effects of the Tax Act that became effective in 2018 and a decrease in unrecognized tax benefits in 2018 as compared to 2017.”
- drak0n1c 7y agoInteresting that tax reform was credited as the main reason for increased taxes paid by one of the largest conglomerates in the world. The corporate tax rate was lowered from 35% to 21%, but Google's bump from 9% to 18% might be evidence that there are now fewer loopholes. Hopefully there will be media articles analyzing this example.
- UncleOxidant 7y agoWasn't tax corporate tax "reform" in effect last year as well?
- deleted 7y ago[deleted]
- kgwgk 7y agoThe low 9% effective rate last year was due to adjustments related to the tax reform. The 18% this year is back to normal.
- acchow 7y agoHeadcount up 21% in 1 year. Can we get a breakdown of which roles they are in? Or which cities/countries?
- high_derivative 7y agoFrom what I read, cloud is massively expanding headcount in sales, marketing, and support.
- panpanna 7y agoSupport? Are we still talking about Google?
- skybrian 7y agoYes, businesses paying the big bucks tend to get a different level of service than consumers using stuff for free.
- jvagner 7y agoEven me and my 2 count G Suite account gets support.
- pkaye 7y agoThey are actually pretty good for services/products you pay money for. I had some Google Home/Nest Thermostat integration issues recently and was super impressed with their tech support people.
- GordonS 7y ago> They are actually pretty good for services/products you pay money for As long as it's not AdWords. I've used it for something like a decade, and the support was and is, crap. Indeed, if you somehow manage to speak to an actual person, all they do is try to adjust your account so you'll spend more.
- 7y ago
- the-rc 7y agoAren't the venture investment losses probably due to Uber's stock price? They owned a sizable chunk. I'm not sure if they sold it all.
- user5994461 7y agoFor reference, Google pays $1B in taxes and fines to France, September 2019. https://www.euractiv.com/section/digital/news/google-agrees-on-1-billion-tax-settlement-with-france/ https://www.euractiv.com/section/digital/news/google-agrees-...
- deleted 7y ago[deleted]
- samename 7y agoNot sure of the breakdown by their subsidiaries, but they added about 20,000 employees in a year (~55/day), from 94,372 to 114,096. That seems huge to me.
- samfisher83 7y agoThey also have around 120k contractors.
- UncleOxidant 7y agoMore contractors than employees.
- blacksmith_tb 7y agoPresumably that's more like 80 new hires per work day, unless they onboard new people on the weekends too (which they might, given this scale!)
- RandallBrown 7y agoEven more than that since people are probably quitting every day too
- VikingCoder 7y ago20,000 hires * times what, 6 interviews each = 120,000 interviews 94,372 employees Each employee gave 1.27 interviews to people who were hired. But cripes, how many did they interview and not hire? That sounds like an enormous burden.
- malydok 7y agoIsn't that a result of acquisition, not recruitment?
- ironfootnz 7y agoWith 29% in "other" expenses, I believe is relatively crossed with the numbers of headcount numbers. Another factor, GCP cloud provider is a big allocator. Honestly, they're unstoppable. With that ammount of $Bi in multiple resources, they have close to big moonshot programs.
- grumpy8 7y agoThink about $1 million.. Alphabet made 33,740 x 1 million.
- kerng 7y agoWonder if it would be better for Google to focus on something else then GCP as future growth area?