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 |
- 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