Summary
Alphabet Inc. reported strong revenue growth in the second quarter of 2018, with total revenues reaching $32.7 billion, a 26% increase year-over-year. This growth was driven primarily by the Google segment, which saw a 25% increase in revenues, with Google properties revenue up significantly due to mobile search and YouTube advertising. Despite robust top-line performance, operating income declined to $2.8 billion, largely impacted by a substantial €4.34 billion ($5.07 billion) fine from the European Commission concerning Android distribution practices, which was recognized as a significant expense in the quarter. Net income for the quarter was $3.2 billion, with diluted earnings per share of $4.54.
Financial Highlights
49 data pointsBeta
Financial Statements
Beta
| Revenue | $32.66B |
| Cost of Revenue | $13.88B |
| Gross Profit | $18.77B |
| R&D Expenses | $5.11B |
| Operating Expenses | $29.61B |
| Operating Income | $3.04B |
| Interest Expense | $27.00M |
| Net Income | $3.19B |
| EPS (Basic) | $0.23 |
| EPS (Diluted) | $0.23 |
Key Highlights
- 1Total revenues grew 26% year-over-year to $32.7 billion for the three months ended June 30, 2018.
- 2Google segment revenues increased by 25% year-over-year to $32.5 billion, driven by Google properties and Google Network Members' properties advertising.
- 3A significant European Commission fine of €4.34 billion ($5.07 billion) related to Android practices was recognized as an expense, impacting operating income.
- 4Other income (expense), net, was a notable positive $1.4 billion, largely due to gains on equity securities.
- 5The company continued to invest heavily in R&D, with expenses increasing to $5.1 billion for the quarter.
- 6Cash, cash equivalents, and marketable securities remained strong at $102.3 billion as of June 30, 2018.
- 7Capital expenditures increased significantly to $5.5 billion for the quarter, indicating continued investment in infrastructure.