Summary
Alphabet Inc.'s (GOOGL) first quarter 2018 report reveals robust revenue growth and strong net income. Total revenues surged by 26% year-over-year to $31.1 billion, driven by a 26% increase in Google segment revenues. This growth was broad-based, with significant contributions from Google properties and Google other revenues, which includes Google Cloud and hardware. The company also saw a notable increase in operating income, rising to $7.0 billion, and a substantial boost in net income to $9.4 billion, translating to a diluted EPS of $13.33. The balance sheet shows continued strength with total assets growing to $206.9 billion. The company maintained a healthy liquidity position with $102.9 billion in cash, cash equivalents, and marketable securities. Significant investments in property and equipment, totaling $7.3 billion, indicate ongoing capital expenditure to support growth. The company also announced a new $8.6 billion share repurchase authorization, demonstrating confidence in its financial position and commitment to returning value to shareholders.
Financial Highlights
49 data points| Revenue | $31.15B |
| Cost of Revenue | $13.47B |
| Gross Profit | $17.68B |
| R&D Expenses | $5.04B |
| Operating Expenses | $23.51B |
| Operating Income | $7.63B |
| Interest Expense | $30.00M |
| Net Income | $9.40B |
| EPS (Basic) | $0.68 |
| EPS (Diluted) | $0.67 |
Key Highlights
- 1Total revenues increased 26% year-over-year to $31.1 billion.
- 2Net income grew significantly to $9.4 billion, with diluted EPS of $13.33.
- 3Google segment revenues grew 26% year-over-year, contributing $31.0 billion to total revenues.
- 4Operating income increased to $7.0 billion.
- 5Cash, cash equivalents, and marketable securities stood at a strong $102.9 billion.
- 6Capital expenditures were substantial at $7.3 billion, reflecting investments in growth.
- 7A new $8.6 billion share repurchase authorization was announced.