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Alphabet Announces First Quarter 2020 Results [pdf]
- xiaolingxiao 6y agoIn short: revenue increased by 5B USD, cost of revenue increased by 2.9B USD. R&D increased by 800M USD, while sales and market increased by 600M USD. EPS increased by 38 cents.
- ac29 6y agoAnd advertising fell from 82% of total revenue to 80%, continuing a downward trend as Google finds success in new market segments. Google Cloud grew from 5.0% to 6.7% of total revenue.
- eanzenberg 6y agoVery nice growth, even for a heavily ad-based company. But hey everyone we’re supposed to be in a depression! lol
- ojbyrne 6y ago"Performance was strong during the first two months of the quarter, but then in March we experienced a significant slowdown in ad revenues. We are sharpening our focus on executing more efficiently, while continuing to invest in our long-term opportunities."
- tenpies 6y agoThere is a parallel between many of these "tech" companies and the oil producers: both are producing a surplus when there is really not much demand for what they are producing. Google/Facebook can have all the MAU and views in the world, but if there is no one interested in buying ad space, then all that attention is effectively worthless. In recessions, one of the first things to go is ad spend.
- mav3rick 6y agoSame goes for iPhones, Airpods
- scarface74 6y agoApple introduced the iPhone in 2007 and saw growth unabated during the recession. People aren’t going to do without phones and at least in the US where all of the major carriers offer 0% interest payment plans. Over the course of two years, the monthly price of an iPhone isn’t that much more than a cheap Android phone. All most people care about is the monthly cost. Also, Apple unlike any other phone manufacturer has a direct relationship with the customer and has its own payment plans. Finally, while Apple’s revenue had start back growing pre-Covid, services has been growing like crazy. Even if people keep their iPhones longer, Apple is still making money off of them - unlike any other phone carrier. Apple is much better diversified than Google.
- mav3rick 6y agoMarket saturation and supply chain constraints weren't the same. No one is going to drop a 1000 USD on a phone right now with many businesses outright closed
- scarface74 6y agoIf only Apple had the foresight to release a new $399 phone so people wouldn’t have to spend $1000....
- mav3rick 6y agoYes people go to Apple for the mid range phone. The entire brand is based on perceived or actual premium. The SE doesn't get you that. Your snark isn't going to change their numbers either. Also btw the argument applied to spending on luxuries. No one is going to upgrade on phones in this atmosphere.
- fg6hr 6y agoMy interpretation of this message is that Google spends $20 billions/quarter and as the ad revenue has dried up, Google will have to spend its $100 billions of savings or consider other options. As far as employees are concerned, $6 billions goes to engineers, $4 to sales & marketing, $2 to administration.
- tehlike 6y agocovid19 really kicked in late march.
- nicolashahn 6y agoNumbers seem pretty good, considering. But the COVID-19 impact wouldn't kick in until about mid-March, so only about 1/6 of the quarter would possibly have been affected. I'm much more interested to see how Q2 is going to look.
- xster 6y agoRuth did mention that the APAC impact has been more "muted" and they were earlier in the timeline than Europe and Americas.
- bretpiatt 6y agoGoogle doesn't do business in China so the Q1 China lockdown is not an event for them and the spread in the rest of APAC was pretty well contained (thus far).
- disgruntledphd2 6y agoThey 100% get a bunch of money from Chinese advertisers though, and one might have expected this to impact their results. Doesn't look like any such effects are visible from these numbers, at least.
- mav3rick 6y agoWill be factored in by the market's estimates.
- klohto 6y ago13% rise in Revenue. Cloud is up from last year $1,825M to $2,777M
- qmarchi 6y agoThe Earnings call is also available at: https://www.youtube.com/watch?v=YkrYz_vD_0E https://www.youtube.com/watch?v=YkrYz_vD_0E
- Steve886 6y ago[INFOGRAPHIC] Key numbers from Alphabet financial results https://news.alphastreet.com/alphabet-q1-earnings-key-numbers-that-you-need-to-note-down-from-googl/ https://news.alphastreet.com/alphabet-q1-earnings-key-number...
- jiqiren 6y agoCan someone explain how YouTube creators are saying their cut of revenue has been reduced by ~50% but YouTube is reporting record jump in revenue (up 33% Q1)? YouTube is just squeezing them for more profit? Source: https://reclaimthenet.org/youtube-ad-revenue-coronavirus/ https://reclaimthenet.org/youtube-ad-revenue-coronavirus/
- fastball 6y agoWell, March 31st is the end of Q1, and that article was posted in the end of March (and COVID-19 stuff didn't really kick off until around then), so probably no need to speculate until we see Q2 results.
- notyourday 6y agoIf youtube pays less for content creation but sells more of the now "free" to it content, it is making out like a gansta.
- nostrademons 6y agoPossibly reporting bias. Top YouTubers who have seen a large drop in revenue make for good news stories in bad economic times. Top YouTubers who have seen gains in revenue have every incentive to keep quiet about it.
- me_me_me 6y agoThat is apparently the path youtube is preferring. Multiple superstar creators rather than large diverse set of smaller channels. They steer and try to lock their userbase with those few high performers. That would explain this.
- jpm_sd 6y agoOther Bets operating loss, in millions 2019 Q1 - ($868) 2020 Q1 - ($1,121) This has to change, right? How can that number keep going up?
- deadmutex 6y agoDo you have these numbers as percentage of revenue?
- KKKKkkkk1 6y agoAre Alphabet execs more qualified to invest in self-driving cars or in biotech than Alphabet's shareholders? Those are billions of shareholders' money that they'll never see again.
- mrep 6y agoDon't invest in them if you don't like it then. I for one see self driving tech as a trillion dollar market between trucking and commuters and I also think they they are uniquely positioned in capitalizing on that market first as they have some of the best software, some of the best large scale datacenter computing tech, and over a hundred billions dollars in cash to invest in this tech all of which I think gives them significant advantages in investing in this long term bet over any other company.
- alexpetralia 6y agoYes. In fact it is precisely them who are qualified to make capital budgeting decisions. If shareholders didn't like it, they could vote the management team out.
- newshhh 6y agoWhy? Investing in big bets is the biggest reason I long Alphabet. They could easily do nothing and just sit on the pile of cash generated from ads, but they would miss out on critical opportunities and become irrelevant in a few years. The laser focus on innovation is what keeps where they are.