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Alphabet Announces Second Quarter 2023 Results [pdf]
- sakopov 3y agoLooks like great earnings for probably one of the most undervalued large caps on the market right now (and Amazon).
- justinwp 3y agoThe company reported EPS of $1.44 vs. Consensus of $1.34 and Revenues of $74.6 Billion vs. $72.85 Consensus.
- samspenc 3y agoQuarterly numbers from their report: - Revenue: $74.6 billion, up 7% YoY - Operating income: $21.8 billion - Operating margin: 29% - Net income: $18.3 billion
- wslh 3y agoHow do you play with inflation numbers around the world? 7% YoY does not seem an increase. US official inflation rate is 8% and inflation is calculated based on a basket that is different from inflation based on specific industries.
- comicjk 3y agoUS inflation YoY was 3% as of the most recent data. https://ycharts.com/indicators/us_consumer_price_index_yoy https://ycharts.com/indicators/us_consumer_price_index_yoy
- ericpauley 3y ago4.8% excluding food and energy (as is standard): https://www.bls.gov/news.release/cpi.nr0.htm https://www.bls.gov/news.release/cpi.nr0.htm
- deleted 3y ago[deleted]
- atlasunshrugged 3y agoLooks like the money machine is still printing! Anyone done deep analysis on how their "other bets" have been performing over time? It feels like a few things have been cut (e.g. Loon) but I haven't been following closely enough to have a good understanding of the full picture
- justinwp 3y agoOther Bets Operating Income (Loss): 2022 (1,339), 2023 (813)
- impulser_ 3y agoAds is still growing and very profitable, YouTube is back to growing, GCP profitable for two quarters in a row, and lower losses on other bets. Google is still Google.
- nine_zeros 3y agoI myself contributed to those ad earnings by watching 4 ads in a 10 min video.
- atlasunshrugged 3y agoDitto. But I do wonder how much ad time is just people using it to listen to music in the background and not really listening to ads (maybe this is priced in anyways and it doesn't matter, but traveling around eastern europe a lot I was surprised how many people used Youtube this way)
- InitialLastName 3y agoThe advertising people know that they can slip information and impressions into your brain whether you think you're listening/reading/clicking or not. All they really need to do is tick a few % of the marginal decision-makers who need to (for example) buy a car to say "I should consider a Ford" and they've covered the ad budget.
- summerlight 3y agoThis is why "impression" metrics are not very useful. Perhaps 99% of impressions are just wasted so advertisers prefer to pay for clicks, or even conversions.
- asynchronous 3y agoYTDL over my dead body.
- apples_oranges 3y agoYou could find ways around that .. after all this is Hacker News.
- beckingz 3y agoup 7000 employees despite layoffs.
- itsthecourier 3y agoIf you have to let leave some apples without scaring the other ones, doing it while everybody else is doing it is a great chance
- samspenc 3y agoI thought this was interesting, so I compared it against their count last quarter (instead of last year) and they are indeed down. - In Q4 2022 [1] they had 190,234 employees. - In Q1 2023 [2] they had 190,711 employees. - This quarter Q2, they have 181,798 employees. So they are down almost 9000 employees from last quarter, close to their 12K layoff number. [1] https://abc.xyz/assets/c4/d3/fb142c0f4a78a278d96ad5597ad9/2022q4-alphabet-earnings-release.pdf https://abc.xyz/assets/c4/d3/fb142c0f4a78a278d96ad5597ad9/20... [2] https://abc.xyz/assets/a7/5b/9e5ae0364b12b4c883f3cf748226/goog-exhibit-99-1-q1-2023-19.pdf https://abc.xyz/assets/a7/5b/9e5ae0364b12b4c883f3cf748226/go...
- Barrin92 3y agothey could fire half their workforce and they'd be back to 2019 numbers https://www.statista.com/statistics/273744/number-of-full-time-google-employees/ https://www.statista.com/statistics/273744/number-of-full-ti...
- umeshunni 3y ago> In January 2023, we completed an assessment of the useful lives of our servers and network equipment and adjusted the estimated useful life of our servers from four years to six years and the estimated useful life of certain network equipment from five years to six years. This change in accounting estimate was effective beginning in fiscal year 2023, and the effect was a reduction in depreciation expense of $966 million and $2.0 billion and an increase in net income of $752 million and $1.5 billion Interesting accounting magic
- IAmNotACellist 3y agoThat's like being told inflation is down because you can eat less
- sebmellen 3y agoInteresting accounting magic indeed. It seems like tricks like this make it remarkably easy to game stock price. Are there any controls on this?
- paxys 3y agoThe controls are that if 4 years from now they decide that the servers need replacing after all and take a write-down then shareholders have a very solid case to sue the company.
- thorncorona 3y agoIs it not possible to go back in 4 years and explain in 4 years that the market is more competitive than expected?
- deleted 3y ago[deleted]
- xur17 3y agoHow does suing a company work? Is it functionally just like a forced dividend, or is it more complicated than that?
- bluefishinit 3y agoIt's been about 6 months since the Google CEO blogged about how they needed to lay of 12,000 people to brace for the "difficult economic cycle". Meanwhile revenue is up 7% YoY. https://blog.google/inside-google/message-ceo/january-update/ https://blog.google/inside-google/message-ceo/january-update...
- harha 3y agoLooks like they weren’t really needed to add to that revenue.
- itsthecourier 3y agoTouché.
- tonmoy 3y agoIf that is true then it means they hired more people than they needed and then instead of admitting it they gave some nonsense about macro economics
- nine_k 3y agoThey hired more really good people to leave fewer really good candidates to the competition. Maybe it made sense. They could not publicly declare this though.
- HDThoreaun 3y agoMaybe they hired more than they needed because of the shifting macro environment? The number of employees you need depends on what you want to accomplish which depends on interest rates, consumer spending, and tons of other macro factors.
- YetAnotherNick 3y agoThey always hired more than needed, even now. I think it's a common knowledge. Most of the time it worked out because google's stock always grew, but yeah if conditions become bad they wouldn't need to think a lot before laying of 20-30% of the workforce.
- billylo 3y agoAfter hours trading: GOOG up 6.8% to $131/share
- seydor 3y agoI ran some google ads lately and they were very ineffective. I feel like my money was going down the drain. Perhaps that's what s driving their higher revenue?
- alphabetting 3y agoIneffective ads wouldn't drive higher revenue. It would be the opposite.
- mrcode007 3y agoIneffective ads require higher spend than the effective ones. At 100% effectiveness (100% conversion rate) you only need to buy N ads to target your sale target of N. Less effective ads mean you need to buy more of them
- thehappypm 3y agoBut that also means they’d be cheaper. Advertisers don’t buy ads unless they have measurable ROI. It doesn’t matter if it’s 1000 impressions for $1 for 1 conversion, or 10 video views for $1 for 1 conversion, or a million impressions for $1 for 1 conversion. It’s just money spent vs money gained.
- tuxpenguine 3y agoMarketers should spend every extra dollar on the ad platform with the lowest customer acquisition cost, so if Google ads are more ineffective compared to others, then its customer will go somewhere else and hence it will have less revenue.
- mrcode007 3y agoDuring the social media ad pause of the 2020, we had multiple companies admit in earnings calls and elsewhere that pausing advertisement had no impact on their sales at all. The extreme end of that spectrum is Tesla with no advertising whatsoever. This kind of observation makes me pause and cause some reflection on ads in general.
- 2OEH8eoCRo0 3y agoI was tempted to bet against them since every Google product seems to be getting worse- felt like getting blood from a stone.
- pschuegr 3y agoThere's a delay between the enshittification and the stock peak, we're in that window now.
- okdood64 3y agoSo you think there's still a peak; are you buying lots of GOOG right now?
- 2OEH8eoCRo0 3y agoYep, along with 499 other large cap US companies.
- mvncleaninst 3y ago> Google Services includes products and services such as ads, Android, Chrome, hardware, Google Maps, Google Play, Search, and YouTube. Google Services generates revenues primarily from advertising; sales of apps and in-app purchases, and hardware; and fees received for subscription-based products such as YouTube Premium and YouTube TV. Interesting how they bundle chrome, android, and pixel with various web services such as search, yt, maps Kind of odd considering pixel is a completely different kind of product. It does make sense because there's likely synergy between first group and second group, but also it makes me wonder how they calculate the profitability of a product like pixel Also it makes me wonder whether the recent proposal of the chrome integrity API will positively or negatively effect these numbers long term given sufficient backlash
- ra7 3y agoInteresting news about Ruth Porat transitioning to President and Chief Investment Officer of Alphabet: > Alphabet and Google CFO Ruth Porat will assume the newly created role of President and Chief Investment Officer of Alphabet and Google, effective September 1, 2023. Ruth will continue to serve as CFO, including leading the company’s 2024 and long-range capital planning processes, while the company searches for and selects her successor. > In her new role, Ruth will continue to report to Sundar Pichai, Alphabet and Google CEO. > Ruth assumed the role of CFO in May 2015 and is the company’s longest-serving CFO. > In her new role, Ruth will be responsible for Alphabet’s investments in its Other Bets portfolio, working closely with Sundar, and the company’s investments in countries and communities around the world. Alphabet’s investments span numerous sectors and are engines of economic growth globally. She will also focus on engagement with policymakers and regulators regarding employment, economic opportunity, competitiveness, and infrastructure expansion. Does this mean cuts a.k.a. "streamlining" incoming for Other Bets? She has been known to be pretty strict about unnecessary spending at Google.
- dekhn 3y agoI can't imagine her new role is going to be friendly to Verily.
- ra7 3y agoWhy Verily in particular?
- theGnuMe 3y agoMaybe but I think Brin and Page are keen to live forever so Verily is their hedge and research playground in that area. It also serves as a translational testing ground for applied AI innovations in the life sciences.
- dekhn 3y agoverily has nothing to do with life extension, that's Calico.