สรุปสาระสำคัญ
- Alphabet เผยรายได้รวมใน 3Q23 โตดีกว่าคาด 11%YoY และกำไรเพิ่มขึ้นดีกว่าคาด 40%YoY อย่างไรก็ดีรายได้ธุรกิจคลาวด์ต่ำกว่าคาดและโตชะลอตัว 22.5%YoY ด้านกำไรอยู่ที่ $266mn ต่ำกว่าคาดที่ $8.6bn ด้วยภาพนี้จึงทำให้ตลาดตอบสนองในเชิงลบและกังวลต่อการเติบโตของกลุ่ม
25 October 2023 Alphabet Inc. GOOGL.USBloomberg GOOGL.US
Reuters GOOGL.O
Despite Alphabet surpassing earnings and revenue growth expectations in 3Q23, its shares fell due to the cloud unit's failure to meet estimates.
Earnings Result
The financial results for Alphabet Inc. in the current quarter show continued growth and positive momentum compared to the previous quarter. Revenue increased by 11% to $77 billion, driven by strong performance in Search, YouTube, and Cloud services. Net income also saw an increase, reaching $19.7 billion. CEO Sundar Pichai highlighted the progress made in AI-driven innovations, while CFO Ruth Porat emphasized the company's focus on delivering sustainable financial value. These results demonstrate Alphabet's ability to maintain growth and deliver on its mission, showcasing the company's strength and potential for the future.
Net profit growth QoQ and YoY
The net profit for the quarter ended March 31, 2023, decreased compared to the same quarter in the previous year. The net profit declined from $16,436 million to $15,051 million. This represents a quarter-over-quarter (QoQ) decrease of approximately 8.4%.
Google's cloud sales fell short of expectations, even as their advertising segment showed signs of recovery.
Alphabet reported that its revenue exceeded estimates, posting an 11% year-over-year increase in Q3 2023 to reach $77 billion. However, disappointing cloud sales from Google led to a decline in stock prices, despite a rebound in advertising. Revenue growth for each business segment is as follows: - Google Services: Revenue remained relatively stable, with a slight increase from $61,472 million in Q1 2022 to $61,961 million in Q1 2023. - Google Cloud: Revenue showed significant growth, increasing from $5,821 million in Q1 2022 to $7,454 million in Q1 2023. - Other Bets: Revenue declined from $440 million in Q1 2022 to $288 million in Q1 2023.
Operating margin
The operating margin for the company decreased from 30% in Q1 2022 to 25% in Q1 2023. This decline in operating margin may be attributed to various factors such as increased corporate costs, including charges related to workforce reductions and office space, as well as losses in the Other Bets segment.
Balance sheet and cashflow
Alphabet showcased strong financials as of September 30, 2023, with total assets at $396,711 million and current assets at $119,935 million. Operating activities generated $30,656 million in net cash, contributing to a positive free cash flow of $22,601 million, despite significant investments in property and equipment. However, financing activities led to a net cash outflow of $18,382 million. Overall, the company maintained a robust balance sheet and demonstrated impressive cash generation capabilities.
The financial results for Alphabet Inc. in the current quarter show continued growth and positive momentum compared to the previous quarter. Revenue increased by 11% to $77 billion, driven by strong performance in Search, YouTube, and Cloud services. Net income also saw an increase, reaching $19.7 billion. CEO Sundar Pichai highlighted the progress made in AI-driven innovations, while CFO Ruth Porat emphasized the company's focus on delivering sustainable financial value. These results demonstrate Alphabet's ability to maintain growth and deliver on its mission, showcasing the company's strength and potential for the future.
Net profit growth QoQ and YoY
The net profit for the quarter ended March 31, 2023, decreased compared to the same quarter in the previous year. The net profit declined from $16,436 million to $15,051 million. This represents a quarter-over-quarter (QoQ) decrease of approximately 8.4%.
Google's cloud sales fell short of expectations, even as their advertising segment showed signs of recovery.
Alphabet reported that its revenue exceeded estimates, posting an 11% year-over-year increase in Q3 2023 to reach $77 billion. However, disappointing cloud sales from Google led to a decline in stock prices, despite a rebound in advertising. Revenue growth for each business segment is as follows: - Google Services: Revenue remained relatively stable, with a slight increase from $61,472 million in Q1 2022 to $61,961 million in Q1 2023. - Google Cloud: Revenue showed significant growth, increasing from $5,821 million in Q1 2022 to $7,454 million in Q1 2023. - Other Bets: Revenue declined from $440 million in Q1 2022 to $288 million in Q1 2023.
Operating margin
The operating margin for the company decreased from 30% in Q1 2022 to 25% in Q1 2023. This decline in operating margin may be attributed to various factors such as increased corporate costs, including charges related to workforce reductions and office space, as well as losses in the Other Bets segment.
Balance sheet and cashflow
Alphabet showcased strong financials as of September 30, 2023, with total assets at $396,711 million and current assets at $119,935 million. Operating activities generated $30,656 million in net cash, contributing to a positive free cash flow of $22,601 million, despite significant investments in property and equipment. However, financing activities led to a net cash outflow of $18,382 million. Overall, the company maintained a robust balance sheet and demonstrated impressive cash generation capabilities.
| Revenue - %Chg YoY | 3Q22 | 4Q22 | 1Q23 | 2Q23 | 3Q23 |
|---|---|---|---|---|---|
| Google Search & Other | 4.3% | -1.6% | 1.9% | 4.8% | 11.3% |
| YouTube Ads | -1.9% | -7.8% | -2.6% | 4.4% | 12.5% |
| Google Network | -1.6% | -8.9% | -8.3% | -5.0% | -2.6% |
| Google Other | 2.1% | 7.8% | 8.8% | 24.2% | 20.9% |
| Sentiment | 4Q22 | 1Q23 | 2Q23 | 3Q23 |
|---|---|---|---|---|
| net profit | Positive | Neutral | Positive | Positive |
| margin | Neutral | Neutral | Neutral | Neutral |
| revenue | Positive | Positive | Positive | Positive |
| Stock data | |
|---|---|
| Market Cap (USD Million) | 1758.43 |
| Beta | 1.20 |
| Last close | 138.81 |
| 12-m Low / High | 83.3 / 141.2 |
| Target price | 153.00 |
| Return Potential | 10.2 % |
| % of Buy / Sell rating | 87.0 % / 0.0 % |
| Valuation data | 12m Forward | 5-Yr Average |
|---|---|---|
| P/E | 20.16 | 26.51 |
| P/B | 4.92 | 5.21 |
| P/S | 6.20 | 5.83 |
| EV/EBITDA | 11.79 | 12.99 |
| Dividend Yield | 0.0 % |
Alphabet Inc.
Alphabet Inc. operates as a holding company. The Company, through its subsidiaries, provides web-based search, advertisements, maps, software applications, mobile operating systems, consumer content, enterprise solutions, commerce, and hardware products.
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