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Quarter Ended June 30, | |||||||||||
2019 | 2020 | ||||||||||
Revenues | $38,944 | $38,297 | |||||||||
Increase (decrease) in revenues year over year | 19 | % | (2) | % | |||||||
Increase (decrease) in constant currency revenues year over year(1)
|
22 | % | 0 | % | |||||||
Operating income | $9,180 | $6,383 | |||||||||
Operating margin | 24 | % | 17 | % | |||||||
Other income (expense), net
|
$2,967 | $1,894 | |||||||||
Net income | $9,947 | $6,959 | |||||||||
Diluted EPS | $14.21 | $10.13 | |||||||||
Quarter Ended June 30, | |||||||||||
2019 | 2020 | ||||||||||
Google Search & other | $23,642 | $21,319 | |||||||||
YouTube ads(1)
|
3,603 | 3,812 | |||||||||
Google properties | 27,245 | 25,131 | |||||||||
Google Network Members' properties | 5,249 | 4,736 | |||||||||
Google advertising | 32,494 | 29,867 | |||||||||
Google Cloud | 2,100 | 3,007 | |||||||||
Google other(1)
|
4,080 | 5,124 | |||||||||
Google revenues | 38,674 | 37,998 | |||||||||
Other Bets revenues | 162 | 148 | |||||||||
Hedging gains | 108 | 151 | |||||||||
Total revenues | $38,944 | $38,297 | |||||||||
Total TAC | $7,238 | $6,694 | |||||||||
Number of employees | 107,646 | 127,498 |
Quarter Ended June 30, | |||||||||||
2019 | 2020 | ||||||||||
Google operating income | $10,280 | $7,572 | |||||||||
Other Bets operating loss | ($989) | ($1,116) |
Investor relations | Media |
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investor-relations@abc.xyz | press@abc.xyz |
As of December 31, | As of June 30, |
||||||||||
2019 | 2020 | ||||||||||
(unaudited) | |||||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 18,498 | $ | 17,742 | |||||||
Marketable securities | 101,177 | 103,338 | |||||||||
Total cash, cash equivalents, and marketable securities | 119,675 | 121,080 | |||||||||
Accounts receivable, net | 25,326 | 21,201 | |||||||||
Income taxes receivable, net | 2,166 | 394 | |||||||||
Inventory | 999 | 815 | |||||||||
Other current assets | 4,412 | 5,579 | |||||||||
Total current assets | 152,578 | 149,069 | |||||||||
Non-marketable investments | 13,078 | 12,961 | |||||||||
Deferred income taxes | 721 | 895 | |||||||||
Property and equipment, net | 73,646 | 78,748 | |||||||||
Operating lease assets | 10,941 | 11,567 | |||||||||
Intangible assets, net | 1,979 | 1,697 | |||||||||
Goodwill | 20,624 | 20,824 | |||||||||
Other non-current assets | 2,342 | 2,731 | |||||||||
Total assets | $ | 275,909 | $ | 278,492 | |||||||
Liabilities and Stockholders’ Equity | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | 5,561 | $ | 4,064 | |||||||
Accrued compensation and benefits | 8,495 | 7,127 | |||||||||
Accrued expenses and other current liabilities | 23,067 | 24,426 | |||||||||
Accrued revenue share | 5,916 | 5,005 | |||||||||
Deferred revenue | 1,908 | 2,061 | |||||||||
Income taxes payable, net | 274 | 975 | |||||||||
Total current liabilities | 45,221 | 43,658 | |||||||||
Long-term debt | 4,554 | 4,018 | |||||||||
Deferred revenue, non-current | 358 | 397 | |||||||||
Income taxes payable, non-current | 9,885 | 8,599 | |||||||||
Deferred income taxes | 1,701 | 1,797 | |||||||||
Operating lease liabilities | 10,214 | 10,709 | |||||||||
Other long-term liabilities | 2,534 | 1,992 | |||||||||
Total liabilities | 74,467 | 71,170 | |||||||||
Commitments and contingencies | |||||||||||
Stockholders’ equity: | |||||||||||
Convertible preferred stock, $0.001 par value per share, 100,000 shares authorized; no shares issued and outstanding | 0 | 0 | |||||||||
Class A and Class B common stock, and Class C capital stock and additional paid-in capital, $0.001 par value per share: 15,000,000 shares authorized (Class A 9,000,000, Class B 3,000,000, Class C 3,000,000); 688,335 (Class A 299,828, Class B 46,441, Class C 342,066) and 681,215 (Class A 300,221, Class B 46,302, Class C 334,692) shares issued and outstanding |
50,552 | 55,937 | |||||||||
Accumulated other comprehensive loss | (1,232) | (296) | |||||||||
Retained earnings | 152,122 | 151,681 | |||||||||
Total stockholders’ equity | 201,442 | 207,322 | |||||||||
Total liabilities and stockholders’ equity | $ | 275,909 | $ | 278,492 |
Quarter Ended June 30, | Year to Date June 30, | ||||||||||||||||||||||
2019 | 2020 | 2019 | 2020 | ||||||||||||||||||||
Revenues | $ | 38,944 | $ | 38,297 | $ | 75,283 | $ | 79,456 | |||||||||||||||
Costs and expenses: | |||||||||||||||||||||||
Cost of revenues | 17,296 | 18,553 | 33,308 | 37,535 | |||||||||||||||||||
Research and development | 6,213 | 6,875 | 12,242 | 13,695 | |||||||||||||||||||
Sales and marketing | 4,212 | 3,901 | 8,117 | 8,401 | |||||||||||||||||||
General and administrative | 2,043 | 2,585 | 4,131 | 5,465 | |||||||||||||||||||
European Commission fines | 0 | 0 | 1,697 | 0 | |||||||||||||||||||
Total costs and expenses | 29,764 | 31,914 | 59,495 | 65,096 | |||||||||||||||||||
Income from operations | 9,180 | 6,383 | 15,788 | 14,360 | |||||||||||||||||||
Other income (expense), net | 2,967 | 1,894 | 4,505 | 1,674 | |||||||||||||||||||
Income before income taxes | 12,147 | 8,277 | 20,293 | 16,034 | |||||||||||||||||||
Provision for income taxes | 2,200 | 1,318 | 3,689 | 2,239 | |||||||||||||||||||
Net income | $ | 9,947 | $ | 6,959 | $ | 16,604 | $ | 13,795 | |||||||||||||||
Basic earnings per share of Class A and B common stock and Class C capital stock | $ | 14.33 | $ | 10.21 | $ | 23.91 | $ | 20.16 | |||||||||||||||
Diluted earnings per share of Class A and B common stock and Class C capital stock | $ | 14.21 | $ | 10.13 | $ | 23.71 | $ | 20.00 | |||||||||||||||
Number of shares used in basic earnings per share calculation | 693,969 | 681,768 | 694,419 | 684,117 | |||||||||||||||||||
Number of shares used in diluted earnings per share calculation | 699,954 | 687,024 | 700,417 | 689,646 |
Quarter Ended June 30, | Year to Date June 30, | ||||||||||||||||||||||
2019 | 2020 | 2019 | 2020 | ||||||||||||||||||||
Operating activities | |||||||||||||||||||||||
Net income | $ | 9,947 | $ | 6,959 | $ | 16,604 | $ | 13,795 | |||||||||||||||
Adjustments: | |||||||||||||||||||||||
Depreciation and impairment of property and equipment | 2,626 | 3,178 | 5,042 | 6,077 | |||||||||||||||||||
Amortization and impairment of intangible assets | 209 | 208 | 406 | 417 | |||||||||||||||||||
Stock-based compensation expense | 2,756 | 3,382 | 5,525 | 6,573 | |||||||||||||||||||
Deferred income taxes | 693 | (591) | 620 | (416) | |||||||||||||||||||
Gain on debt and equity securities, net | (2,797) | (1,842) | (3,878) | (1,040) | |||||||||||||||||||
Other | (70) | 372 | (48) | 669 | |||||||||||||||||||
Changes in assets and liabilities, net of effects of acquisitions: | |||||||||||||||||||||||
Accounts receivable | (1,146) | (80) | 26 | 2,522 | |||||||||||||||||||
Income taxes, net | (1,043) | 783 | 25 | 538 | |||||||||||||||||||
Other assets | 89 | (244) | (176) | (359) | |||||||||||||||||||
Accounts payable | (18) | 146 | (443) | (689) | |||||||||||||||||||
Accrued expenses and other liabilities | 1,303 | 1,432 | 1,074 | (2,099) | |||||||||||||||||||
Accrued revenue share | 87 | 179 | (60) | (692) | |||||||||||||||||||
Deferred revenue | (9) | 111 | (90) | 148 | |||||||||||||||||||
Net cash provided by operating activities | 12,627 | 13,993 | 24,627 | 25,444 | |||||||||||||||||||
Investing activities | |||||||||||||||||||||||
Purchases of property and equipment | (6,126) | (5,391) | (10,764) | (11,396) | |||||||||||||||||||
Purchases of marketable securities | (23,841) | (26,548) | (44,724) | (64,111) | |||||||||||||||||||
Maturities and sales of marketable securities | 19,686 | 24,063 | 40,692 | 65,874 | |||||||||||||||||||
Purchases of non-marketable investments | (188) | (739) | (1,095) | (1,311) | |||||||||||||||||||
Maturities and sales of non-marketable investments | 107 | 213 | 206 | 473 | |||||||||||||||||||
Acquisitions, net of cash acquired, and purchases of intangible assets | (148) | (165) | (247) | (355) | |||||||||||||||||||
Other investing activities | 55 | 119 | 89 | 531 | |||||||||||||||||||
Net cash used in investing activities | (10,455) | (8,448) | (15,843) | (10,295) | |||||||||||||||||||
Financing activities | |||||||||||||||||||||||
Net payments related to stock-based award activities | (1,260) | (1,475) | (2,435) | (2,716) | |||||||||||||||||||
Repurchases of capital stock | (3,577) | (6,852) | (6,602) | (15,348) | |||||||||||||||||||
Proceeds from issuance of debt, net of costs | 2 | 0 | 317 | 1,898 | |||||||||||||||||||
Repayments of debt | (48) | (35) | (393) | (1,982) | |||||||||||||||||||
Proceeds from sale of interest in consolidated entities | 137 | 864 | 184 | 2,464 | |||||||||||||||||||
Net cash used in financing activities | (4,746) | (7,498) | (8,929) | (15,684) | |||||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | 13 | 51 | 31 | (221) | |||||||||||||||||||
Net decrease in cash and cash equivalents | (2,561) | (1,902) | (114) | (756) | |||||||||||||||||||
Cash and cash equivalents at beginning of period | 19,148 | 19,644 | 16,701 | 18,498 | |||||||||||||||||||
Cash and cash equivalents at end of period | $ | 16,587 | $ | 17,742 | $ | 16,587 | $ | 17,742 |
Quarter Ended June 30, 2020 |
|||||
Net cash provided by operating activities | $ | 13,993 | |||
Less: purchases of property and equipment | (5,391) | ||||
Free cash flow | $ | 8,602 |
Quarter Ended June 30, 2020 | |||||||||||
YoY (using Q2'19's FX rates) |
QoQ (using Q1'20's FX rates) |
||||||||||
EMEA revenues (GAAP) | $ | 11,363 | $ | 11,363 | |||||||
Exclude foreign exchange effect on Q2'20 revenues using Q2'19 rates | 361 | N/A | |||||||||
Exclude foreign exchange effect on Q2'20 revenues using Q1'20 rates | N/A | 281 | |||||||||
EMEA constant currency revenues (non-GAAP) | $ | 11,724 | $ | 11,644 | |||||||
Prior period EMEA revenues (GAAP) | $ | 12,313 | $ | 12,845 | |||||||
EMEA revenue percentage change (GAAP) | (8) | % | (12) | % | |||||||
EMEA constant currency revenue percentage change (non-GAAP) | (5) | % | (9) | % | |||||||
APAC revenues (GAAP) | $ | 6,945 | $ | 6,945 | |||||||
Exclude foreign exchange effect on Q2'20 revenues using Q2'19 rates | 105 | N/A | |||||||||
Exclude foreign exchange effect on Q2'20 revenues using Q1'20 rates | N/A | 74 | |||||||||
APAC constant currency revenues (non-GAAP) | $ | 7,050 | $ | 7,019 | |||||||
Prior period APAC revenues (GAAP) | $ | 6,536 | $ | 7,238 | |||||||
APAC revenue percentage change (GAAP) | 6 | % | (4) | % | |||||||
APAC constant currency revenue percentage change (non-GAAP) | 8 | % | (3) | % | |||||||
Other Americas revenues (GAAP) | $ | 1,839 | $ | 1,839 | |||||||
Exclude foreign exchange effect on Q2'20 revenues using Q2'19 rates | 240 | N/A | |||||||||
Exclude foreign exchange effect on Q2'20 revenues using Q1'20 rates | N/A | 190 | |||||||||
Other Americas constant currency revenues (non-GAAP) | $ | 2,079 | $ | 2,029 | |||||||
Prior period Other Americas revenues (GAAP) | $ | 2,124 | $ | 2,157 | |||||||
Other Americas revenue percentage change (GAAP) | (13) | % | (15) | % | |||||||
Other Americas constant currency revenue percentage change (non-GAAP) | (2) | % | (6) | % | |||||||
United States revenues (GAAP) | $ | 17,999 | $ | 17,999 | |||||||
United States revenue percentage change (GAAP) | 1 | % | (5) | % | |||||||
Hedging gains | $ | 151 | $ | 151 | |||||||
Revenues (GAAP) | $ | 38,297 | $ | 38,297 | |||||||
Constant currency revenues (non-GAAP) | $ | 38,852 | $ | 38,691 | |||||||
Prior period revenues, excluding hedging effect (non-GAAP)(1)
|
$ | 38,836 | $ | 41,110 | |||||||
Revenue percentage change (GAAP) | (2) | % | (7) | % | |||||||
Constant currency revenue percentage change (non-GAAP) | 0 | % | (6) | % |
Quarter Ended | |||||||||||
June 30, | |||||||||||
2019 | 2020 | ||||||||||
Interest income | $ | 653 | $ | 433 | |||||||
Interest expense | (25) | (13) | |||||||||
Foreign currency exchange loss, net | (52) | (92) | |||||||||
Gain on debt securities, net | 98 | 387 | |||||||||
Gain on equity securities, net(1)(2)
|
2,699 | 1,455 | |||||||||
Performance fees | (443) | (75) | |||||||||
Loss and impairment from equity method investments, net | (16) | (54) | |||||||||
Other | 53 | (147) | |||||||||
Other income (expense), net | $ | 2,967 | $ | 1,894 |
Quarter Ended | |||||||||||
June 30, | |||||||||||
2019 | 2020 | ||||||||||
Revenues: | |||||||||||
Google(1)
|
$ | 38,674 | $ | 37,998 | |||||||
Other Bets | 162 | 148 | |||||||||
Hedging gains(1)
|
108 | 151 | |||||||||
Total revenues | $ | 38,944 | $ | 38,297 | |||||||
Operating income (loss): | |||||||||||
Google(1)
|
$ | 10,280 | $ | 7,572 | |||||||
Other Bets | (989) | (1,116) | |||||||||
Reconciling items(1)(2)
|
(111) | (73) | |||||||||
Total income from operations | $ | 9,180 | $ | 6,383 | |||||||
Stock-based compensation(3):
|
|||||||||||
$ | 2,600 | $ | 3,126 | ||||||||
Other Bets | 125 | 136 | |||||||||
Reconciling items(4)
|
35 | 67 | |||||||||
Total stock-based compensation | $ | 2,760 | $ | 3,329 | |||||||
Capital expenditures: | |||||||||||
$ | 6,896 | $ | 4,836 | ||||||||
Other Bets | 65 | 96 | |||||||||
Reconciling items(5)
|
(835) | 459 | |||||||||
Total capital expenditures | $ | 6,126 | $ | 5,391 | |||||||
Depreciation, amortization, and impairment: | |||||||||||
$ | 2,756 | $ | 3,292 | ||||||||
Other Bets | 79 | 94 | |||||||||
Total depreciation, amortization, and impairment | $ | 2,835 | $ | 3,386 |