Summary
Alphabet Inc. reported robust revenue growth of 21% year-over-year for the second quarter of 2017, reaching $26.0 billion. This growth was primarily driven by strong performance in the Google segment, which saw a 21% increase in revenue, contributing $25.8 billion. "Other Bets" also showed significant growth, with revenues up 34% to $0.2 billion. Despite a substantial European Commission fine of approximately $2.7 billion impacting net income, the company demonstrated operational strength with solid cash flow generation. Total assets grew to $178.6 billion, while stockholders' equity increased to $148.3 billion, indicating a healthy financial position. The company maintained a significant cash and marketable securities balance of $94.7 billion, providing ample liquidity.
Financial Highlights
47 data points| Revenue | $26.01B |
| Cost of Revenue | $10.37B |
| Gross Profit | $15.64B |
| R&D Expenses | $4.17B |
| Operating Expenses | $21.88B |
| Operating Income | $4.13B |
| Interest Expense | $21.00M |
| Net Income | $3.52B |
| EPS (Basic) | $0.25 |
| EPS (Diluted) | $0.25 |
Key Highlights
- 1Total revenues reached $26.0 billion, a 21% increase year-over-year, with the Google segment contributing $25.8 billion (21% growth).
- 2Operating expenses were impacted by a $2.7 billion European Commission fine, leading to a net income of $3.5 billion (down from $4.9 billion in the prior year's quarter).
- 3Diluted earnings per share were $5.01, reflecting the impact of the fine.
- 4The company maintained a strong liquidity position with $94.7 billion in cash, cash equivalents, and marketable securities as of June 30, 2017.
- 5Capital expenditures increased to $5.3 billion for the six months ended June 30, 2017, reflecting ongoing investments in property and equipment.
- 6Headcount grew to 75,606 employees by the end of the quarter, indicating continued expansion.
- 7Stock-based compensation expense increased to $2.06 billion for the quarter, reflecting growth in employee incentives.