2019年第三季度谷歌财报.pdf

Alphabet Announces Third Quarter 2019 ResultsMOUNTAIN VIEW, Calif. October 28, 2019 Alphabet Inc. (NASDAQ: GOOG, GOOGL) today announced financial results for the quarter ended September 30, 2019.“I am extremely pleased with the progress we made across the board in the third quarter, from our recent advancements in search and quantum computing to our strong revenue growth driven by mobile search, YouTube and Cloud,” said Sundar Pichai, Chief Executive Officer of Google. “Were focused on providing the most helpful services to our users and partners, and we see many opportunities ahead.”“Our businesses delivered another quarter of strong performance, with revenues of $40.5 billion, up 20% versus the third quarter of 2018 and up 22% on a constant currency basis,” said Ruth Porat, Chief Financial Officer of Alphabet and Google. “We continue to invest thoughtfully in talent and infrastructure to support our growth, particularly in newer areas like Cloud and machine learning.”Q3 2019 financial highlightsThe following table summarizes our consolidated financial results for the quarters ended September 30, 2018 and 2019 (in millions, except for per share information, percentages, and number of employees; unaudited):Three Months EndedSeptember 30, 2018Three Months EndedSeptember 30, 2019Revenues $33,740 $40,499Increase in revenues year over year 21% 20%Increase in constant currency revenues year over year 22% 22%Operating income(1) $8,625 $9,177Operating margin(1) 26% 23%Other income (expense), net(1) $1,458 ($549)Net income $9,192 $7,068Diluted EPS $13.06 $10.12Diluted shares (in thousands) 703,859 698,199Effective 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 unaudited)Segment revenues and operating resultsThree Months EndedSeptember 30, 2018Three Months EndedSeptember 30, 2019Google properties revenues $24,054 $28,647Google Network Members properties revenues 4,900 5,269Google advertising revenues 28,954 33,916Google other revenues 4,640 6,428Google segment revenues $33,594 $40,344Other Bets revenues $146 $155Google operating income $9,490 $10,865Other Bets operating loss ($727) ($941)2Traffic acquisition costs (TAC) to Google Network Members and distribution partnersThree Months EndedSeptember 30, 2018Three Months EndedSeptember 30, 2019TAC to Google Network Members $3,427 $3,634TAC to Google Network Members as % of Google NetworkMembers properties revenues 70% 69%TAC to distribution partners $3,155 $3,856TAC to distribution partners as % of Google propertiesrevenues 13% 13%Total TAC $6,582 $7,490Total TAC as % of Google advertising revenues 23% 22%Monetization metrics informationChange from Q3 2018to Q3 2019 (YoY)Change from Q2 2019to 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%Webcast and conference call informationA live audio webcast of our third quarter 2019 earnings release call will be available at abc/investor. The call begins today at 2:00 PM (PT) / 5:00 PM (ET). This press release, including the reconciliations of certain non-GAAP measures to their nearest comparable GAAP measures, is also available on that site.We also provide announcements regarding our financial performance, including SEC filings, investor events, press and earnings releases, and blogs, on our investor relations website (abc/investor).Forward-looking statementsThis 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 “Managements Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2018, as amended, and our most recent Quarterly Report on Form 10-Q for the quarter ended June 30, 2019 which are on file with the SEC and are available on our investor relations website at abc/investor and on the SEC website at sec.gov. Additional information will also be set forth in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2019. All information provided in this release and in the attachments is as of October 28, 2019. Undue reliance should not be placed on the forward-looking statements in this press release, which are based on information available to us on the date hereof. We undertake no duty to update this information unless required by law.About non-GAAP financial measuresTo supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we use the following non-GAAP financial measures: free cash flow; constant currency revenues; and constant currency revenue growth. The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.We use these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. We believe that these non-GAAP financial measures provide meaningful supplemental information regarding our performance and liquidity by excluding certain items that may not be indicative of our recurring core business operating results, such as our revenues excluding the effect of foreign exchange rate movements and hedging activities. We believe that both management and investors benefit from referring to these non-GAAP financial 3measures in assessing our performance and when planning, forecasting, and analyzing future periods. These non-GAAP financial measures also facilitate managements internal comparisons to our historical performance and liquidity as well as comparisons to our competitors operating results. We believe these non-GAAP financial measures are useful to investors both because (1) they allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making and (2) they are used by our institutional investors and the analyst community to help them analyze the health of our business.There are a number of limitations related to the use of non-GAAP financial measures. We compensate for these limitations by providing specific information regarding the GAAP amounts excluded from these non-GAAP financial measures and evaluating these non-GAAP financial measures together with their relevant financial measures in accordance with GAAP.For more information on these non-GAAP financial measures, please see the tables captioned “Reconciliation from net cash provided by operating activities to free cash flow” and “Reconciliation from GAAP revenues to non-GAAP constant currency revenues” included at the end of this release.ContactInvestor relations Mediainvestor-relationsabc pressabc4Alphabet Inc.CONSOLIDATED BALANCE SHEETS(In millions, except share amounts which are reflected in thousands and par value per share amounts)December 31,2018September 30,2019(unaudited)AssetsCurrent assets:Cash and cash equivalents $ 16,701 $ 16,032Marketable securities 92,439 105,145Total cash, cash equivalents, and marketable securities 109,140 121,177Accounts receivable, net of allowance of $729 and $643 20,838 20,889Income taxes receivable, net 355 192Inventory 1,107 1,401Other current assets 4,236 4,699Total current assets 135,676 148,358Non-marketable investments 13,859 12,488Deferred income taxes 737 564Property and equipment, net 59,719 69,252Operating lease assets 0 10,341Intangible assets, net 2,220 1,747Goodwill 17,888 18,069Other non-current assets 2,693 2,225Total assets $ 232,792 $ 263,044Liabilities and Stockholders EquityCurrent liabilities:Accounts payable $ 4,378 $ 4,142Accrued compensation and benefits 6,839 7,399Accrued expenses and other current liabilities 16,958 21,038Accrued revenue share 4,592 4,835Deferred revenue 1,784 1,679Income taxes payable, net 69 131Total current liabilities 34,620 39,224Long-term debt 4,012 4,082Deferred revenue, non-current 396 364Income taxes payable, non-current 11,327 11,355Deferred income taxes 1,264 1,747Operating lease liabilities 0 9,666Other long-term liabilities 3,545 1,637Total liabilities 55,164 68,075Commitments and contingenciesStockholders equity:Convertible preferred stock, $0.001 par value per share, 100,000 shares authorized; noshares issued and outstanding 0 0Class A and Class B common stock, and Class C capital stock and additional paid-incapital, $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 49,040Accumulated other comprehensive loss (2,306) (1,196)Retained earnings 134,885 147,125Total stockholders equity 177,628 194,969Total liabilities and stockholders equity $ 232,792 $ 263,0445Alphabet Inc.CONSOLIDATED STATEMENTS OF INCOME(In millions, except per share amounts; unaudited)Three Months Ended Nine Months EndedSeptember 30, September 30,2018 2019 2018 2019Revenues $ 33,740 $ 40,499 $ 97,543 $ 115,782Costs and expenses:Cost of revenues 14,281 17,568 41,631 50,876Research and development 5,232 6,554 15,385 18,796Sales and marketing 3,849 4,609 11,233 12,726General and administrative 1,753 2,591 4,920 6,722European Commission fines 0 0 5,071 1,697Total costs and expenses 25,115 31,322 78,240 90,817Income from operations 8,625 9,177 19,303 24,965Other income (expense), net 1,458 (549) 5,538 3,956Income before income taxes 10,083 8,628 24,841 28,921Provision for income taxes 891 1,560 3,053 5,249Net income $ 9,192 $ 7,068 $ 21,788 $ 23,672Basic earnings per share of Class A and B common stock andClass C capital stock $ 13.21 $ 10.20 $ 31.34 $ 34.12Diluted earnings per share of Class A and B common stock andClass C capital stock $ 13.06 $ 10.12 $ 30.95 $ 33.836Alphabet Inc.CONSOLIDATED STATEMENTS OF CASH FLOWS(In millions; unaudited)Three Months Ended Nine Months EndedSeptember 30, September 30,2018 2019 2018 2019Operating activitiesNet income $ 9,192 $ 7,068 $ 21,788 $ 23,672Adjustments:Depreciation and impairment of property and equipment 2,138 2,732 5,791 7,774Amortization and impairment of intangible assets 217 188 664 594Stock-based compensation expense 2,230 2,624 7,100 8,149Deferred 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 25Income taxes, net (1,235) 185 (1,891) 210Other assets (484) (611) (1,240) (787)Accounts payable 316 57 293 (386)Accrued expenses and other liabilities 1,857 1,853 6,457 2,927Accrued revenue share 107 261 (196) 201Deferred revenue (23) (59) 272 (149)Net cash provided by operating activities 13,210 15,466 34,984 40,093Investing activitiesPurchases 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 74,783Purchases of non-marketable investments (386) (404) (1,118) (1,499)Maturities and sales of non-marketable investments 154 91 1,345 297Acquisitions, net of cash acquired, and purchases of intangibleassets (18) (126) (1,452) (373)Other investing activities 20 379 69 468Net cash used in investing activities (10,408) (8,945) (21,628) (24,788)Financing activitiesNet 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 317Repayments of debt (555) (145) (6,822) (538)Proceeds from sale of interest in consolidated entities 0 18 0 202Net 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 16,701Cash and cash equivalents at end of period $ 13,443 $ 16,032 $ 13,443 $ 16,0327Reconciliation from net cash provided by operating activities to free cash flow (in millions; unaudited):We provide free cash flow because it is a liquidity measure that provides useful information to management and investors about the amount of cash generated by the business that can be used for strategic opportunities, including investing in our business and acquisitions, and to strengthen our balance sheet.Three MonthsEnded September30, 2019Net cash provided by operating activities $ 15,466Less: purchases of property and equipment (6,732)Free cash flow $ 8,734Free cash flow: We define free cash flow as net cash provided by operating activities less capital expenditures.8Reconciliation from GAAP revenues to non-GAAP constant currency revenues (in millions; unaudited):We provide non-GAAP constant currency revenues and growth because they facilitate the comparison of current results to historic performance by excluding the effect of foreign exchange rate movements and hedging activities, which are not indicative of our core operating results.Three Months EndedSeptember 30, 2019Three Months EndedSeptember 30, 2019YoY(using Q318s FX rates)QoQ(using Q219s FX rates)EMEA revenues (GAAP) $ 12,667 $ 12,667Exclude foreign exchange effect on Q319 revenues using Q318 rates 456 N/AExclude foreign exchange effect on Q319 revenues using Q219 rates N/A 82Exclude hedging effect recognized in Q319 (102) (102)EMEA constant currency revenues (non-GAAP) $ 13,021 $ 12,647Prior period EMEA revenues, excluding hedging effect (non-GAAP) $ 10,909 $ 12,313EMEA revenue growth (GAAP) 16% 2 %EMEA constant currency revenue growth (non-GAAP) 19% 3 %APAC revenues (GAAP) $ 6,828 $ 6,828Exclude foreign exchange effect on Q319 revenues using Q318 rates 17 N/AExclude foreign exchange effect on Q319 revenues using Q219 rates N/A (39)Exclude hedging effect recognized in Q319 (14) (14)APAC constant currency revenues (non-GAAP) $ 6,831 $ 6,775Prior period APAC revenues, excluding hedging effect (non-GAAP) $ 5,401 $ 6,536APAC revenue growth (GAAP) 26% 4 %APAC constant currency revenue growth (non-GAAP) 26% 4 %Other Americas revenues (GAAP) $ 2,293 $ 2,293Exclude foreign exchange effect on Q319 revenues using Q318 rat