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

Thank you, Mr. Air, a netizen of CTOnews.com, for your clue delivery! On the morning of July 26, Beijing time, Alphabet (the parent company of Google) today released its results for the second quarter of fiscal year 2023, which ended June 30.

According to the report, Alphabet's total revenue in the second quarter was $74.604 billion, up 7% from $69.685 billion in the same period last year, and 9% year-on-year, excluding exchange rate changes. Under general accounting principles, Alphabet's second-quarter net profit was $18.368 billion, up 15% from $16.002 billion a year earlier, and diluted earnings per share were $1.44, compared with $1.21 a year earlier.

Alphabet's second-quarter revenue and diluted earnings per share both beat Wall Street analysts' expectations, while YouTube advertising and Google's cloud revenue also beat expectations, pushing its shares up more than 6% in after-hours trading, breaking their 52-week high.

Main results: Alphabet's total revenue in the second quarter was $74.604 billion, up 7% from $69.685 billion in the same period last year.

According to US general accounting standards, Alphabet's second-quarter operating profit was $21.838 billion, accounting for 29 per cent of revenue, or operating margin. According to general accounting standards, Alphabet made an operating profit of $19.453 billion in the same period last year, accounting for 28% of revenue

Under general US accounting standards, Alphabet's second-quarter net profit was $18.368 billion, up 15 per cent from $16.002 billion a year earlier. Under general accounting standards, Alphabet's diluted earnings per share were $1.44 in the second quarter, compared with $1.21 in the same period a year earlier.

The comparison between the results and analysts' expectations: Alphabet's total revenue in the second quarter was $74.604 billion, well ahead of analysts' expectations. On average, 29 analysts had expected Alphabet's second-quarter revenue to reach $65.42 billion, according to Yahoo Finance. Alphabet's diluted earnings of $1.44 a share in the second quarter also beat analysts' expectations. On average, 31 analysts had expected Alphabe to earn $1.20 a share in the second quarter, according to Yahoo Finance.

In addition, Alphabet second-quarter YouTube advertising and Google cloud revenue also exceeded analysts' expectations. Google reported second-quarter YouTube advertising revenue of $7.67 billion, with analysts expecting an average of $7.43 billion, while Google's cloud revenue was $8.03 billion, according to data provided by market analyst firm StreetAccount. Analysts had expected an average of $7.87 billion, according to StreetAccount.

Alphabet's second-quarter traffic acquisition cost was $12.54 billion, and analysts had expected an average of $12.37 billion, according to data provided by StreetAccount.

Alphabet's second-quarter results beat analysts' expectations across the board, sending its shares up nearly 6 per cent in after-hours trading in New York.

Financial analysis: Alphabet's total revenue in the second quarter was $74.604 billion, up 7% from $69.685 billion a year earlier. If the exchange rate is the same as the same period a year ago (excluding benefits associated with the foreign exchange risk management programme), Alphabet's revenue growth in the second quarter was 9 per cent year-on-year.

Revenue from Google search and other businesses in Alphabet's Google division was $42.628 billion in the second quarter, compared with $40.689 billion a year earlier, while revenue from YouTube's advertising division was $7.665 billion, compared with $7.34 billion a year earlier.

Alphabet's Google division generated $7.85 billion in second-quarter online revenue from the AdSense program for Google's partner sites, compared with $8.259 billion a year earlier.

Alphabet's Google division posted $58.143 billion in advertising revenue (or combined revenue from all of these businesses) in the second quarter, compared with $56.288 billion a year earlier.

Other revenue from Alphabet's Google division was $8.142 billion in the second quarter, compared with $6.553 billion a year earlier.

Alphabet's Google division's second-quarter revenue from services (or combined revenue from all of these businesses) was $66.285 billion, compared with $62.841 billion a year earlier.

Alphabet's Google division generated $8.031 billion in revenue from its cloud business in the second quarter, compared with $6.276 billion a year earlier.

Alphabet's "Other Bets" business had revenue of $285 million in the second quarter, compared with $193 million in the same period last year.

Alphabet posted a hedging gain of $3 million in the second quarter, compared with $375 million a year earlier.

By region, Alphabet's revenue from the EMEA (Europe, Middle East and Africa) region was $22.289 billion in the second quarter, up 9 per cent from $20.533 billion a year earlier and 6 per cent from $21.078 billion in the previous quarter. Excluding currency changes, Alphabet's revenue from the EMEA region rose 10 per cent in the second quarter from a year earlier and 4 per cent from the previous quarter.

Alphabet's revenue from the Asia-Pacific region was $12.728 billion in the second quarter, up 9 per cent from $11.71 billion a year earlier and up 9 per cent from $11.681 billion in the previous quarter. Excluding currency changes, Alphabet's revenue from the Asia-Pacific region rose 14 per cent in the second quarter from a year earlier and 10 per cent from the previous quarter.

Alphabet's revenue from the US in the second quarter was $35.073 billion, up 7 per cent from $32.727 billion a year earlier and up 7 per cent from $32.864 billion in the previous quarter.

Alphabet's revenue from other parts of the Americas was $4.511 billion in the second quarter, up 4% from $4.34 billion a year earlier and 11% from $4.06 billion in the previous quarter. Excluding currency movements, Alphabet's revenue from the rest of the Americas rose 11 per cent in the second quarter from a year earlier and 10 per cent from the previous quarter.

Alphabet's second-quarter traffic acquisition expense (TAC), or revenue shared with partners, was $12.537 billion, compared with $12.214 billion a year earlier.

Alphabet's total costs and expenses were $52.766 billion in the second quarter, compared with $50.232 billion in the same period last year. Of this total, Alphabet's revenue cost in the second quarter was $31.916 billion, compared with $30.104 billion in the same period last year; R & D expenditure was $10.588 billion, compared with $9.841 billion in the same period last year; sales and marketing expenses were $6.781 billion, compared with $6.630 billion in the same period last year; and general and administrative expenses were $3.481 billion, compared with $3.657 billion in the same period last year.

Alphabet's other income (net) was $65 million in the second quarter, compared with $439 million in other expenses (net) in the same period last year.

According to US general accounting standards, Alphabet's second-quarter operating profit was $21.838 billion, accounting for 29 per cent of revenue, or operating margin. According to general accounting standards, Alphabet made an operating profit of $19.453 billion in the same period last year, accounting for 28% of revenue.

Under general US accounting standards, Alphabet's second-quarter net profit was $18.368 billion, up 15 per cent from $16.002 billion a year earlier. Under general accounting standards, Alphabet's diluted earnings per share were $1.44 in the second quarter, compared with $1.21 in the same period a year earlier.

Alphabet's net cash from business operations was $28.666 billion in the second quarter, compared with $19.422 billion in the same period last year. Alphabet's free cash flow was $21.778 billion in the second quarter, compared with $12.594 billion in the same period last year.

As of June 30, 2023, the total value of cash, cash equivalents and realisable securities held by Alphabet was $118.332 billion and $113.762 billion as of December 31, 2022.

As of June 30, 2023, Alphabet employed 181798 full-time employees worldwide, compared with 174014 as of June 30, 2022.

Share price movements: on the day, Alphabet shares rose 91 cents, or 0.75%, to close at $122.79 in regular Nasdaq trading.

Alphabet shares rose another $7.25, or 5.90 per cent, to $130.04 in after-hours trading as of 05:46 est on Tuesday (05:46 Beijing time on Wednesday), breaking a 52-week high.

In the 52 weeks to the close of the US stock market on Tuesday, Alphabet's peak price was $129.55 and its lowest price was $83.45.

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