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Revenue grew 13% or 8B but operating income fell as did net income. Yikes. Either that additional 30k in headcount really took a toll or they are investing heav
by gigatexal 4y ago
Revenue grew 13% or 8B but operating income fell as did net income. Yikes. Either that additional 30k in headcount really took a toll or they are investing heavily in other areas. That or acquisition costs are rising. (I’m still reading the PDF).
- gigatexal 4y agoAhh pages 4 and 5 make more sense now. TAC went up 2B but also costs of revenue as well.
- gigatexal 4y agoTotal costs and expenses 42,519 50,232 (2021-2022) cost of revenue tracked more or less 1:1 with rise in revenue which is why net income was the same. Hmmm.
- donalhunt 4y agoCapex spend is one area mentioned in the Investor Relations call - primarily new datacenters, office fitouts and server purchases. Comparing q2 in 2021 and 2022 is difficult because the pandemic boosted revenues in 2021 but capex spend was delayed. And in 2022, some revenue didn't materialise due to uncertainty but investments for the future are being made. As usual with alphabet, look at the mukti-year trend. And don't be surprised to see investment in bets that will pay off in 5+ years time.
- oittaa 4y agoI would guess that all three major public cloud providers will have great growth at least for a decade ahead. People here sometimes forget that there are companies outside Silicon Valley startups.
- ac29 4y agoThey took a pretty big loss on debt and equity securities this quarter, compared to a profit in Q221. Roughly a $3B hit to net income. This might be realized or unrealized (mark to market) losses. See page 9.