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As Of Filer Filing For·On·As Docs:Size 10/28/19 Alphabet Inc. 8-K:2,9 10/28/19 13:657K |
Document/Exhibit Description Pages Size 1: 8-K Current Report HTML 32K 2: EX-99.1 Miscellaneous Exhibit HTML 159K 12: R1 Cover page Document HTML 52K 10: XML IDEA XML File -- Filing Summary XML 12K 11: XML XBRL Instance -- goog8-kq32019_htm XML 20K 9: EXCEL IDEA Workbook of Financial Reports XLSX 6K 4: EX-101.CAL XBRL Calculations -- goog-20191028_cal XML 7K 5: EX-101.DEF XBRL Definitions -- goog-20191028_def XML 40K 6: EX-101.LAB XBRL Labels -- goog-20191028_lab XML 82K 7: EX-101.PRE XBRL Presentations -- goog-20191028_pre XML 43K 3: EX-101.SCH XBRL Schema -- goog-20191028 XSD 17K 13: JSON XBRL Instance as JSON Data -- MetaLinks 14± 21K 8: ZIP XBRL Zipped Folder -- 0001652044-19-000030-xbrl Zip 33K
Exhibit |
Three Months Ended September 30, 2018 | Three Months Ended September 30, 2019 | ||||||
Revenues | $33,740 | $40,499 | |||||
Increase
in revenues year over year | 21 | % | 20 | % | |||
Increase in constant currency revenues year over year | 22 | % | 22 | % | |||
Operating
income(1) | $8,625 | $9,177 | |||||
Operating margin(1) | 26 | % | 23 | % | |||
Other
income (expense), net(1) | $1,458 | ($549 | ) | ||||
Net income | $9,192 | $7,068 | |||||
Diluted
EPS | $13.06 | $10.12 | |||||
Diluted shares (in thousands) | 703,859 | 698,199 | |||||
Effective
tax rate | 9 | % | 18 | % | |||
Number of employees | 94,372 | 114,096 |
(1)
| Q3 2018 results have been recast to reflect the reclassification of performance fees from general and administrative expenses to other income (expense), net (OI&E) to conform to the current period presentation. |
Three
Months Ended September 30, 2018 | Three Months Ended September 30, 2019 | ||||||
Google properties revenues | $24,054 | $28,647 | |||||
Google Network Members' properties
revenues | 4,900 | 5,269 | |||||
Google advertising revenues | 28,954 | 33,916 | |||||
Google other revenues | 4,640 | 6,428 | |||||
Google
segment revenues | $33,594 | $40,344 | |||||
Other Bets revenues | $146 | $155 | |||||
Google
operating income | $9,490 | $10,865 | |||||
Other Bets operating loss | ($727 | ) | ($941 | ) |
Three Months Ended September 30, 2018 | Three Months Ended September 30, 2019 | ||||||
TAC to Google Network Members | $3,427 | $3,634 | |||||
TAC
to Google Network Members as % of Google Network Members' properties revenues | 70 | % | 69 | % | |||
TAC to distribution partners | $3,155 | $3,856 | |||||
TAC
to distribution partners as % of Google properties revenues | 13 | % | 13 | % | |||
Total TAC | $6,582 | $7,490 | |||||
Total
TAC as % of Google advertising revenues | 23 | % | 22 | % |
Change from Q3 2018 to Q3 2019 (YoY) | Change
from Q2 2019 to Q3 2019 (QoQ) | ||||
Paid clicks on Google properties | 18 | % | 1 | % | |
Cost-per-click on Google properties | (2 | )% | 3 | % | |
Impressions
on Google Network Members’ properties | 12 | % | 0 | % | |
Cost-per-impression on Google Network Members’ properties | (3 | )% | 0 | % |
Investor relations | Media |
(unaudited) | |||||||
Assets | |||||||
Current
assets: | |||||||
Cash and cash equivalents | $ | 16,701 | $ | 16,032 | |||
Marketable securities | 92,439 | 105,145 | |||||
Total
cash, cash equivalents, and marketable securities | 109,140 | 121,177 | |||||
Accounts receivable, net of allowance of $729 and $643 | 20,838 | 20,889 | |||||
Income taxes
receivable, net | 355 | 192 | |||||
Inventory | 1,107 | 1,401 | |||||
Other current assets | 4,236 | 4,699 | |||||
Total
current assets | 135,676 | 148,358 | |||||
Non-marketable investments | 13,859 | 12,488 | |||||
Deferred income taxes | 737 | 564 | |||||
Property
and equipment, net | 59,719 | 69,252 | |||||
Operating lease assets | 0 | 10,341 | |||||
Intangible assets, net | 2,220 | 1,747 | |||||
Goodwill | 17,888 | 18,069 | |||||
Other
non-current assets | 2,693 | 2,225 | |||||
Total assets | $ | 232,792 | $ | 263,044 | |||
Liabilities
and Stockholders’ Equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 4,378 | $ | 4,142 | |||
Accrued
compensation and benefits | 6,839 | 7,399 | |||||
Accrued expenses and other current liabilities | 16,958 | 21,038 | |||||
Accrued revenue share | 4,592 | 4,835 | |||||
Deferred
revenue | 1,784 | 1,679 | |||||
Income taxes payable, net | 69 | 131 | |||||
Total current liabilities | 34,620 | 39,224 | |||||
Long-term
debt | 4,012 | 4,082 | |||||
Deferred revenue, non-current | 396 | 364 | |||||
Income taxes payable, non-current | 11,327 | 11,355 | |||||
Deferred
income taxes | 1,264 | 1,747 | |||||
Operating lease liabilities | 0 | 9,666 | |||||
Other long-term liabilities | 3,545 | 1,637 | |||||
Total
liabilities | 55,164 | 68,075 | |||||
Commitments and contingencies | |||||||
Stockholders’ equity: | |||||||
Convertible
preferred stock, $0.001 par value per share, 100,000 shares authorized; no shares issued and outstanding | 0 | 0 | |||||
Class A and Class B common stock, and Class C capital stock and additional paid-in capital, $0.001 par value per share: 15,000,000 shares authorized (Class A 9,000,000, Class B 3,000,000, Class C 3,000,000); 695,556 (Class A 299,242, Class B 46,636, Class C 349,678) and 690,906 (Class A 299,624, Class B 46,508, Class C 344,774) shares issued and outstanding | 45,049 | 49,040 | |||||
Accumulated
other comprehensive loss | (2,306 | ) | (1,196 | ) | |||
Retained earnings | 134,885 | 147,125 | |||||
Total stockholders’ equity | 177,628 | 194,969 | |||||
Total
liabilities and stockholders’ equity | $ | 232,792 | $ | 263,044 |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | |||||||||||||||
2018 | 2019 | 2018 | 2019 | ||||||||||||
Revenues | $ | 33,740 | $ | 40,499 | $ | 97,543 | $ | 115,782 | |||||||
Costs
and expenses: | |||||||||||||||
Cost of revenues | 14,281 | 17,568 | 41,631 | 50,876 | |||||||||||
Research
and development | 5,232 | 6,554 | 15,385 | 18,796 | |||||||||||
Sales and marketing | 3,849 | 4,609 | 11,233 | 12,726 | |||||||||||
General
and administrative | 1,753 | 2,591 | 4,920 | 6,722 | |||||||||||
European Commission fines | 0 | 0 | 5,071 | 1,697 | |||||||||||
Total
costs and expenses | 25,115 | 31,322 | 78,240 | 90,817 | |||||||||||
Income from operations | 8,625 | 9,177 | 19,303 | 24,965 | |||||||||||
Other
income (expense), net | 1,458 | (549 | ) | 5,538 | 3,956 | ||||||||||
Income before income taxes | 10,083 | 8,628 | 24,841 | 28,921 | |||||||||||
Provision
for income taxes | 891 | 1,560 | 3,053 | 5,249 | |||||||||||
Net income | $ | 9,192 | $ | 7,068 | $ | 21,788 | $ | 23,672 | |||||||
Basic
earnings per share of Class A and B common stock and Class C capital stock | $ | 13.21 | $ | 10.20 | $ | 31.34 | $ | 34.12 | |||||||
Diluted
earnings per share of Class A and B common stock and Class C capital stock | $ | 13.06 | $ | 10.12 | $ | 30.95 | $ | 33.83 |
Three Months Ended | Nine Months Ended | ||||||||||||||
September
30, | |||||||||||||||
2018 | 2019 | 2018 | 2019 | ||||||||||||
Operating activities | |||||||||||||||
Net
income | $ | 9,192 | $ | 7,068 | $ | 21,788 | $ | 23,672 | |||||||
Adjustments: | |||||||||||||||
Depreciation
and impairment of property and equipment | 2,138 | 2,732 | 5,791 | 7,774 | |||||||||||
Amortization and impairment of intangible assets | 217 | 188 | 664 | 594 | |||||||||||
Stock-based
compensation expense | 2,230 | 2,624 | 7,100 | 8,149 | |||||||||||
Deferred income taxes | 880 | (239 | ) | 723 | 381 | ||||||||||
(Gain)
loss on debt and equity securities, net | (1,353 | ) | 1,479 | (5,413 | ) | (2,399 | ) | ||||||||
Other | 38 | (71 | ) | (82 | ) | (119 | ) | ||||||||
Changes
in assets and liabilities, net of effects of acquisitions: | |||||||||||||||
Accounts receivable | (670 | ) | (1 | ) | 718 | 25 | |||||||||
Income
taxes, net | (1,235 | ) | 185 | (1,891 | ) | 210 | |||||||||
Other assets | (484 | ) | (611 | ) | (1,240 | ) | (787 | ) | |||||||
Accounts
payable | 316 | 57 | 293 | (386 | ) | ||||||||||
Accrued expenses and other liabilities | 1,857 | 1,853 | 6,457 | 2,927 | |||||||||||
Accrued
revenue share | 107 | 261 | (196 | ) | 201 | ||||||||||
Deferred revenue | (23 | ) | (59 | ) | 272 | (149 | ) | ||||||||
Net
cash provided by operating activities | 13,210 | 15,466 | 34,984 | 40,093 | |||||||||||
Investing activities | |||||||||||||||
Purchases
of property and equipment | (5,282 | ) | (6,732 | ) | (18,058 | ) | (17,496 | ) | |||||||
Purchases of marketable securities | (14,299 | ) | (36,244 | ) | (37,340 | ) | (80,968 | ) | |||||||
Maturities
and sales of marketable securities | 9,403 | 34,091 | 34,926 | 74,783 | |||||||||||
Purchases of non-marketable investments | (386 | ) | (404 | ) | (1,118 | ) | (1,499 | ) | |||||||
Maturities
and sales of non-marketable investments | 154 | 91 | 1,345 | 297 | |||||||||||
Acquisitions, net of cash acquired, and purchases of intangible assets | (18 | ) | (126 | ) | (1,452 | ) | (373 | ) | |||||||
Other
investing activities | 20 | 379 | 69 | 468 | |||||||||||
Net cash used in investing activities | (10,408 | ) | (8,945 | ) | (21,628 | ) | (24,788 | ) | |||||||
Financing
activities | |||||||||||||||
Net payments related to stock-based award activities | (1,253 | ) | (1,131 | ) | (3,952 | ) | (3,566 | ) | |||||||
Repurchases
of capital stock | (2,200 | ) | (5,696 | ) | (6,425 | ) | (12,298 | ) | |||||||
Proceeds from issuance of debt, net of costs | 530 | 0 | 6,766 | 317 | |||||||||||
Repayments
of debt | (555 | ) | (145 | ) | (6,822 | ) | (538 | ) | |||||||
Proceeds from sale of interest in consolidated entities | 0 | 18 | 0 | 202 | |||||||||||
Net
cash used in financing activities | (3,478 | ) | (6,954 | ) | (10,433 | ) | (15,883 | ) | |||||||
Effect of exchange rate changes on cash and cash equivalents | (29 | ) | (122 | ) | (195 | ) | (91 | ) | |||||||
Net
increase (decrease) in cash and cash equivalents | (705 | ) | (555 | ) | 2,728 | (669 | ) | ||||||||
Cash and cash equivalents at beginning of period | 14,148 | 16,587 | 10,715 | 16,701 | |||||||||||
Cash
and cash equivalents at end of period | $ | 13,443 | $ | 16,032 | $ | 13,443 | $ | 16,032 |
Three Months Ended September 30, 2019 | |||
Net cash provided by operating activities | $ | 15,466 | |
Less:
purchases of property and equipment | (6,732 | ) | |
Free cash flow | $ | 8,734 |
Three Months Ended September 30, 2019 | Three
Months Ended September 30, 2019 | ||||||
YoY (using Q3'18's FX rates) | QoQ (using Q2'19's FX rates) | ||||||
EMEA revenues (GAAP) | $ | 12,667 | $ | 12,667 | |||
Exclude
foreign exchange effect on Q3'19 revenues using Q3'18 rates | 456 | N/A | |||||
Exclude foreign exchange effect on Q3'19 revenues using Q2'19 rates | N/A | 82 | |||||
Exclude
hedging effect recognized in Q3'19 | (102 | ) | (102 | ) | |||
EMEA constant currency revenues (non-GAAP) | $ | 13,021 | $ | 12,647 | |||
Prior
period EMEA revenues, excluding hedging effect (non-GAAP) | $ | 10,909 | $ | 12,313 | |||
EMEA revenue growth (GAAP) | 16 | % | 2 | % | |||
EMEA
constant currency revenue growth (non-GAAP) | 19 | % | 3 | % | |||
APAC revenues (GAAP) | $ | 6,828 | $ | 6,828 | |||
Exclude
foreign exchange effect on Q3'19 revenues using Q3'18 rates | 17 | N/A | |||||
Exclude foreign exchange effect on Q3'19 revenues using Q2'19 rates | N/A | (39 | ) | ||||
Exclude
hedging effect recognized in Q3'19 | (14 | ) | (14 | ) | |||
APAC constant currency revenues (non-GAAP) | $ | 6,831 | $ | 6,775 | |||
Prior
period APAC revenues, excluding hedging effect (non-GAAP) | $ | 5,401 | $ | 6,536 | |||
APAC revenue growth (GAAP) | 26 | % | 4 | % | |||
APAC
constant currency revenue growth (non-GAAP) | 26 | % | 4 | % | |||
Other Americas revenues (GAAP) | $ | 2,293 | $ | 2,293 | |||
Exclude
foreign exchange effect on Q3'19 revenues using Q3'18 rates | 66 | N/A | |||||
Exclude foreign exchange effect on Q3'19 revenues using Q2'19 rates | N/A | (13 | ) | ||||
Exclude
hedging effect recognized in Q3'19 | (3 | ) | (3 | ) | |||
Other Americas constant currency revenues (non-GAAP) | $ | 2,356 | $ | 2,277 | |||
Prior
period Other Americas revenues, excluding hedging effect (non-GAAP) | $ | 1,827 | $ | 2,124 | |||
Other Americas revenue growth (GAAP) | 25 | % | 8 | % | |||
Other
Americas constant currency revenue growth (non-GAAP) | 29 | % | 7 | % | |||
United States revenues (GAAP) | $ | 18,711 | $ | 18,711 | |||
United
States revenue growth (GAAP) | 21 | % | 5 | % | |||
Revenues (GAAP) | $ | 40,499 | $ | 40,499 | |||
Constant
currency revenues (non-GAAP) | $ | 40,919 | $ | 40,410 | |||
Prior period revenues, excluding hedging effect (non-GAAP) | $ | 33,660 | $ | 38,836 | |||
Revenue
growth (GAAP) | 20 | % | 4 | % | |||
Constant currency revenue growth (non-GAAP) | 22 | % | 4 | % |
Three Months Ended | |||||||
2018 | 2019 | ||||||
Interest
income | $ | 481 | $ | 631 | |||
Interest expense | (28 | ) | (23 | ) | |||
Foreign currency
exchange gain (loss), net | (55 | ) | 41 | ||||
Gain (loss) on debt securities, net | (29 | ) | 49 | ||||
Gain (loss) on equity securities, net(1)(2) | 1,382 | (1,528 | ) | ||||
Performance
fees(3) | (315 | ) | 227 | ||||
Loss and impairment from equity method investments, net | (27 | ) | (14 | ) | |||
Other | 49 | 68 | |||||
Other
income (expense), net | $ | 1,458 | $ | (549 | ) |
(1) | Approximately $1.5 billion of the loss on equity securities for Q3 2019 represents unrealized losses on equity investments that we hold.
Fluctuations in the value of our investments could significantly contribute to the volatility of OI&E in future periods. |
(2) | ASU 2016-01, effective January 1, 2018, requires that all gains and losses, unrealized and realized, on equity security investments are recognized in OI&E. For Q3 2019, the net effect of the loss on equity securities of $1.5 billion and the performance fees reversal of $227 million decreased income tax, net income, and diluted EPS by $273 million,
$1,028 million, and $1.47, respectively. |
(3) | Q3 2018 results have been recast to reflect the reclassification of performance fees from general and administrative expenses to OI&E to conform to the current period presentation. |
Three Months Ended | |||||||
2018 | 2019 | ||||||
Revenues: | |||||||
Google | $ | 33,594 | $ | 40,344 | |||
Other
Bets | 146 | 155 | |||||
Total revenues | $ | 33,740 | $ | 40,499 | |||
Operating
income (loss): | |||||||
Google | $ | 9,490 | $ | 10,865 | |||
Other Bets | (727 | ) | (941 | ) | |||
Reconciling
items(1) | (138 | ) | (747 | ) | |||
Total income from operations | $ | 8,625 | $ | 9,177 | |||
Stock-based
compensation(2): | |||||||
Google | $ | 2,071 | $ | 2,470 | |||
Other Bets | 125 | 117 | |||||
Reconciling
items(3) | 34 | 34 | |||||
Total stock-based compensation | $ | 2,230 | $ | 2,621 | |||
Capital
expenditures: | |||||||
Google | $ | 5,643 | $ | 7,228 | |||
Other Bets | 55 | 71 | |||||
Reconciling
items(4) | (416 | ) | (567 | ) | |||
Total capital expenditures | $ | 5,282 | $ | 6,732 | |||
Depreciation,
amortization, and impairment: | |||||||
Google | $ | 2,277 | $ | 2,837 | |||
Other Bets | 78 | 83 | |||||
Total
depreciation, amortization, and impairment | $ | 2,355 | $ | 2,920 |
(1) | Reconciling items are generally comprised of corporate administrative costs and other miscellaneous items that are not allocated to individual segments. Reconciling items for the three months ended September
30, 2019 include a $554 million charge from a legal settlement. Performance fees previously included in reconciling items were reclassified for the prior period from general and administrative expenses to OI&E to conform with current period presentation. |
(2) | For purposes of segment reporting, SBC represents awards that we expect to settle in Alphabet stock. |
(3) | Reconciling items are primarily related to corporate administrative costs that are not allocated to individual
segments. |
(4) | Reconciling items are related to timing differences of payments, as segment capital expenditures are on an accrual basis while total capital expenditures shown on the Consolidated Statements of Cash Flows are on a cash basis, and other miscellaneous differences. |
This ‘8-K’ Filing | Date | Other Filings | ||
---|---|---|---|---|
Filed on / For Period end: | 10/28/19 | 10-Q, 4, CORRESP | ||
9/30/19 | 10-Q, 4 | |||
6/30/19 | 10-Q | |||
12/31/18 | 10-K, 10-K/A, 4, 5, SD | |||
9/30/18 | 10-Q | |||
1/1/18 | ||||
List all Filings |