Shulou(Shulou.com)11/24 Report--

Thanks to CTOnews.com netizen kkkkkkkkkayd for the clue delivery! In the early morning of October 26, Beijing time, Alphabet (Google's parent company) today released its financial results for the third quarter of fiscal year 2022, which ended September 30. According to the report, the total revenue of Alphabet in the third quarter was $69.092 billion, up 6% from $65.118 billion in the same period last year, and 11% year-on-year, excluding exchange rate changes. According to general accounting standards, Alphabet's third-quarter net profit was $13.91 billion, down 26.5% from $18.936 billion in the same period last year. Diluted earnings per share were $1.06, compared with $1.40 a year earlier.

Main results:-- Alphabet's total revenue in the third quarter was $69.092 billion, up 6% from $65.118 billion in the same period last year, and 11% year-on-year growth excluding exchange rate changes. Alphabet calculates total revenue in accordance with US GAAP, without deducting flow acquisition expenses (TAC). Alphabet's third quarter traffic acquisition expenses, that is, revenue shared with partners, was $11.826 billion, compared with $11.498 billion in the same period last year.

According to US general accounting standards, Alphabet's operating profit in the third quarter was $17.135 billion, accounting for 25 per cent of revenue, or operating margin. According to US general accounting standards, Alphabet's operating profit in the same period last year was $21.031 billion, accounting for 32% of revenue.

-- under GAAP, Alphabet's third-quarter net income was $13.91 billion, down 26.5% from $18.936 billion a year earlier, and diluted earnings per share were $1.06 per share under GAAP, compared with $1.40 per share in the same period a year earlier.

Financial analysis: Alphabet's total revenue in the third quarter was $69.092 billion, up 6% from $65.118 billion a year earlier, and 11% year-on-year, excluding exchange rate changes.

Revenue by business unit:

-Alphabet's Google search and other division posted revenue of $39.539 billion in the third quarter, compared with $37.926 billion a year earlier, while YouTube's advertising division generated $7.071 billion, compared with $7.205 billion a year earlier.

-Alphabet's Google division generated $7.872 billion in third-quarter online revenue from the AdSense program for Google partner sites, compared with $7.999 billion a year earlier.

-Alphabet's Google division posted $54.482 billion in advertising revenue (the sum of these businesses) in the third quarter, compared with $53.13 billion a year earlier.

-other revenue from Alphabet's Google division was $6.895 billion in the third quarter, compared with $6.754 billion a year earlier.

-Alphabet's Google division's second-quarter service revenue (that is, the combined revenue of the above businesses) was $61.377 billion, compared with $59.884 billion a year earlier.

-the Google Cloud business of Alphabet's Google division had revenue of $6.868 billion in the third quarter, compared with $4.99 billion a year earlier.

-Alphabet's "Other Bets" business had revenue of $209 million in the third quarter, compared with $182 million in the same period last year.

-Alphabet posted a hedging gain of $638 million in the third quarter, compared with $62 million a year earlier.

Revenue by region:-Alphabet's revenue from the EMEA (Europe, Middle East and Africa) region was $19.45 billion in the third quarter, down 2 per cent from $19.839 billion in the same period last year, up 11 per cent year-on-year excluding currency changes; down 5 per cent from $20.533 billion in the previous quarter, and 1 per cent year-on-year excluding currency changes.

-Alphabet's revenue from the Asia-Pacific region in the third quarter was $11.494 billion, down 2 per cent from $11.705 billion in the same period last year, up 8 per cent year-on-year, excluding exchange rate changes, down 2 per cent from $11.71 billion in the previous quarter, and 2 per cent year-on-year excluding exchange rate changes.

-Alphabet's revenue from the United States in the third quarter was $33.372 billion, up 12% from $29.824 billion in the same period last year and 2% from $32.727 billion in the previous quarter.

-Alphabet's revenue from other parts of the Americas was $4.138 billion in the third quarter, up 12 per cent from $3.688 billion in the same period last year, up 17 per cent year-on-year excluding exchange rate changes, down 5 per cent from $4.34 billion in the previous quarter and 1 per cent year-on-year excluding exchange rate changes.

Costs and expenses: Alphabet's third quarter traffic acquisition expense (TAC), or revenue shared with partners, was $11.826 billion, compared with $11.498 billion a year earlier.

Alphabet's total costs and expenses were $51.957 billion in the third quarter, compared with $44.087 billion in the same period last year. Of this total, Alphabet's third-quarter revenue cost was $31.158 billion, compared with $27.621 billion in the same period last year; R & D expenditure was $10.273 billion, compared to $7.694 billion in the same period last year; sales and marketing expenses were $6.929 billion, compared with $5.516 billion in the same period last year; and general and administrative expenses were $3.597 billion, compared with $3.256 billion in the same period last year.

Alphabet's other expenses (net) were $902 million in the third quarter, compared with $2.033 billion in other income (net) in the same period last year.

Operating profit: according to US general accounting standards, Alphabet's third-quarter operating profit was $17.135 billion, accounting for 25 per cent of revenue, or operating margin. According to US general accounting standards, Alphabet's operating profit was $21.031 billion in the same period last year, accounting for 32 per cent of revenue.

By business unit, Alphabet's Google Services division posted an operating profit of $19.781 billion in the third quarter, compared with $23.973 billion in the same period last year. Google's cloud division posted an operating loss of $699 million, compared with an operating loss of $644 million in the same period last year. The operating loss of the "Other Bets" business was $1.611 billion, compared with an operating loss of $1,288 million in the same period last year. Corporate costs (unallocated) were $336 million, compared with $1.01 billion in the same period last year.

Net income and diluted earnings per share: under GAAP, Alphabet's third-quarter net income was $13.91 billion, down 26.5% from $18.936 billion a year earlier.

Under GAAP, diluted earnings per share were $1.06, compared with $1.40 a year earlier.

Cash and other information: Alphabet's net cash from business operations was $23.353 billion in the third quarter, compared with $25.539 billion in the same period a year earlier.

Alphabet's free cash flow was $16.077 billion in the third quarter.

Excluding cash classified as held for sale as of September 30, 2022, the total value of cash, cash equivalents and realisable securities held by Alphabet was $21.984 billion, compared with $23.719 billion as of September 30, 2021.

As of September 30, 2022, Alphabet employed 186779 full-time employees worldwide, compared with 150028 as of September 30, 2021.

Analysts expect Alphabet's total revenue in the third quarter to be $69.092 billion, which fell short of analysts' expectations. On average, 28 analysts had expected Alphabet's third-quarter revenue to reach $70.6 billion, according to Yahoo Finance.

Alphabet's diluted earnings of $1.06 per share in the third quarter also fell short of analysts' expectations. On average, 31 analysts had expected Alphabet to earn $1.25 a share in the third quarter, according to Yahoo Finance.

As a result, Alphabet shares fell nearly 7 per cent in after-hours trading on Nasdaq.

Share price movements: Alphabet (Nasdaq:GOOG) shares rose $1.96, or 1.90%, to close at $104.93 in regular Nasdaq trading. Alphabet shares fell 6.67 per cent, or 6.67 per cent, to $97.93, or 6.67 per cent, in after-hours trading as of 05:47 EDT (05:47 Beijing time on Wednesday), approaching a 52-week low. In the past 52 weeks, the highest price for Alphabet is $152.10 and the lowest price is $95.27.

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