Alphabet Announces Second Quarter 2020 Results

MOUNTAIN VIEW, Calif. - July 30, 2020 - Alphabet Inc. (NASDAQ: GOOG, GOOGL) today announced financial results for the quarter ended June 30, 2020.

"We're working to help people, businesses and communities in these uncertain times," said Sundar Pichai, Chief Executive Officer of Google and Alphabet. "As people increasingly turn to online services, our platforms - from Cloud to Google Play to YouTube - are helping our partners provide important services and support their businesses."

"In the second quarter our total revenues were $38.3B, driven by gradual improvement in our ads business and strong growth in Google Cloud and Other Revenues," said Ruth Porat, Chief Financial Officer of Alphabet and Google. "We continue to navigate through a difficult global economic environment."

Q2 2020 financial highlights

The following table summarizes our consolidated financial results for the quarters ended June 30, 2019 and 2020 (in millions, except for per share information and percentages; unaudited).

Quarter Ended June 30,

2019

2020

Revenues

$38,944

$38,297

Increase (decrease) in revenues year over year

19 %

(2)%

Increase (decrease) in constant currency revenues year over year(1)

22 %

0 %

Operating income

$9,180

$6,383

Operating margin

24 %

17 %

Other income (expense), net

$2,967

$1,894

Net income

$9,947

$6,959

Diluted EPS

$14.21

$10.13

  1. Non-GAAPmeasure. See the table captioned "Reconciliation from GAAP revenues to non-GAAP constant currency revenues" for more details.

Q2 2020 supplemental information (in millions, except for number of employees; unaudited)

Revenues, Traffic Acquisition Costs (TAC) and number of employees

The following table summarizes our revenues, total TAC and number of employees.

Quarter Ended June 30,

2019

2020

Google Search & other

$23,642

$21,319

YouTube ads(1)

3,603

3,812

Google properties

27,245

25,131

Google Network Members' properties

5,249

4,736

Google advertising

32,494

29,867

Google Cloud

2,100

3,007

Google other(1)

4,080

5,124

Google revenues

38,674

37,998

Other Bets revenues

162

148

Hedging gains

108

151

Total revenues

$38,944

$38,297

Total TAC

$7,238

$6,694

Number of employees

107,646

127,498

(1)

YouTube non-advertising revenues are included in Google other revenues.

Segment operating results

Quarter Ended June 30,

2019

2020

Google operating income

$10,280

$7,572

Other Bets operating loss

($989)

($1,116)

Stock Repurchase

On July 27, 2020, the Board of Directors of Alphabet authorized the company to repurchase up to an additional $28.0 billion of its Class C capital stock. The repurchases are expected to be executed from time to time, subject to general business and market conditions and other investment opportunities, through open market purchases or privately negotiated transactions, including through Rule 10b5-1 plans.

Webcast and conference call information

A live audio webcast of our second quarter 2020 earnings release call will be available on YouTube at https:// youtu.be/I3PA0MkYpwg. The call begins today at 1:30 PM (PT) / 4:30 PM (ET). This press release, including the reconciliations of certain non-GAAP measures to their nearest comparable GAAP measures, is also available at http://abc.xyz/investor.

We also provide announcements regarding our financial performance, including SEC filings, investor events, press and earnings releases, and blogs, on our investor relations website (http://abc.xyz/investor).

We also share Google news and product updates on Google's Keyword blog at https://www.blog.google/, which may be of interest or material to our investors.

Forward-looking statements

This press release may contain forward-looking statements that involve risks and uncertainties. Actual results may differ materially from the results predicted, and reported results should not be considered as an indication of future performance. The potential risks and uncertainties that could cause actual results to differ from the results predicted include, among others, those risks and uncertainties included under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K for

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Alphabet Inc. published this content on 30 July 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 July 2020 20:20:06 UTC