Thursday, January 28, 2016

Google News - Investor Relations - Google: Getting ready for segment reporting

Google News - Investor Relations - Google

News for Google's Investor Relations

Getting ready for segment reporting
https://investor.google.com/releases/2016/0128.html
Jan 28th 2016, 21:42

In August 2015, we announced plans to create Alphabet, a new public holding company, in which we would run our newer initiatives separately from the main, internet-related businesses within Google. We expect the new Alphabet structure to bring increased focus, accountability and transparency to all of our efforts. Since the announcement, we've been hard at work making the internal changes needed to make Alphabet a reality and to implement the related segment reporting starting with our fourth quarter 2015 results.
In order to help you understand the financial results for the fourth quarter of 2015 that we'll report on February 1, we wanted to share some information in advance.
Two Reported Segments: Google and Other Bets. As we discussed on our Q3 earnings call, we'll be adding disclosures for our segments. First, we will disclose our new 'Google' segment which includes our main internet products such as Search, Ads, Commerce, Maps, YouTube, Apps, Cloud, Android, Chrome, Google Play as well as hardware products we sell, such as Chromecast, Chromebooks and Nexus. Our technical infrastructure and newer efforts like Virtual Reality also remain in Google.
Second, our other businesses will be combined and disclosed as 'Other Bets', which includes Access/Google Fiber, Calico, Nest, Verily (formerly Google Life Sciences), GV (formerly Google Ventures), Google Capital, X (formerly Google [X]) and other initiatives.
No changes to consolidated reporting, some changes in revenue breakout. Nothing is being taken away from our consolidated reporting. We will continue to show Google advertising revenues and TAC broken out by Sites and Network and we will continue to share monetization metrics (click and CPC growth) in aggregate as well as separately for Sites and Network.
In our historical results, revenues from Other Bets were included in "Other Revenues." With segment reporting, Other Revenues will now be reported only for the Google segment as "Google Other Revenues." Other Bets revenue will now be reported in the Other Bets segment. We've provided more information below on where you'll see this information.
Six key financial disclosures for each segment. For each of Google and Other Bets, we'll be reporting:
Revenues
Segment operating income / (loss), excluding stock-based compensation expense
Stock-based compensation
Segment operating income / (loss)
Capital expenditures
Depreciation, amortization and impairments
Quarterly data for current year, prior year comparable period and annual information for 3 full years. To ensure that you have a basis for comparison, in addition to current period, we will also provide historical segment information for all quarters of 2015, the fourth quarter of 2014 and full years 2013, 2014, and 2015 in our upcoming earnings release.
Visual presentation. You can expect the presentation of segment results to look something like this for each period included in our upcoming earnings release:

In addition, we will provide our revenue breakout for each period in the press release as follows:

Reconciling items. You'll see from the above that segment revenues are fairly straightforward. The revenues from the Google segment plus the revenues from Other Bets will equal the total consolidated revenues.
For our other segment disclosures we will include "reconciling items" to help you see how the amounts reported for Google and Other Bets relate to the consolidated number for Alphabet as a whole in our income or cash flow statements.
For segment operating income / (loss) and stock-based compensation expense ('SBC') the reconciling items will primarily relate to corporate administrative costs and other miscellaneous items that are not allocated to individual segments.
For capital expenditures, the reconciling items primarily relate to timing differences of payments, as segment capital expenditures are presented on an accrual basis whereas capital expenditures in Alphabet's Consolidated Statements of Cash Flow are on a cash basis.
In addition, reconciliations can also include other miscellaneous items, for example, items relating to Motorola for fiscal 2013 and 2014, as applicable.
Separately, please note that return on investments from our ventures and capital businesses are included in OI&E (Other income and expense, net), which we will continue to disclose at a consolidated level.
We hope this helps set the stage for our new disclosures on Monday, February 1.
Posted by Amie Thuener, Chief Accountant
Contact
Investor Relations
investor-relations@google.com
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Friday, January 8, 2016

Google News - Investor Relations - Google: Alphabet Announces Date of Fourth Quarter 2015 Financial Results Conference Call

Google News - Investor Relations - Google

News for Google's Investor Relations

Alphabet Announces Date of Fourth Quarter 2015 Financial Results Conference Call
https://investor.google.com/releases/2016/0108.html
Jan 8th 2016, 21:40


MOUNTAIN VIEW, Calif. (January 8, 2016) – Alphabet Inc. (NASDAQ: GOOG, GOOGL) will hold its quarterly conference call to discuss fourth quarter 2015 financial results on Monday, February 1st at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time).
The live webcast of the earnings conference call can be accessed at investor.google.com/webcast.html. A replay of the webcast will be available through the same link following the conference call. Please visit the Investor Relations website at investor.google.com on February 1, 2016 to view the earnings release prior to the conference call.
About Alphabet Inc.
Larry Page and Sergey Brin founded Google in September 1998. Since then, the company has grown to more than 50,000 employees worldwide, with a wide range of popular products and platforms like Search, Maps, Ads, Gmail, Android, Chrome, and YouTube. In October 2015, Alphabet became the parent holding company of Google. You can read more about Alphabet's mission here.
Contact
Investor Relations
investor-relations@google.com

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Thursday, October 22, 2015

Google News - Investor Relations - Google: Alphabet Announces Third Quarter 2015 Results of Google

Google News - Investor Relations - Google

News for Google's Investor Relations

Alphabet Announces Third Quarter 2015 Results of Google
https://investor.google.com/earnings/2015/Q3_google_earnings.html
Oct 22nd 2015, 20:55

Revenues of $18.7 billion and revenue growth of 13% year over year; constant currency revenue growth of 21% year over year
Substantial growth of mobile search revenue, complemented by contributions from YouTube and Programmatic Advertising
GAAP and non-GAAP operating income of $4.7 billion and $6.1 billion, respectively
GAAP and non-GAAP diluted EPS of $5.73 and $7.35, respectively
Strong operating cash flow of $6.0 billion
MOUNTAIN VIEW, Calif. – October 22, 2015 – Alphabet Inc. (NASDAQ: GOOG, GOOGL), the successor issuer to, and parent holding company of, Google Inc., today announced financial results of Google as it existed prior to the reorganization that became effective on October 2, 2015 for the quarter ended September 30, 2015.
"Our Q3 results show the strength of Google's business, particularly in mobile search. With six products now having more than 1 billion users globally, we're excited about the opportunities ahead of Google, and across Alphabet," said Ruth Porat, CFO of Alphabet and Google.

Q3 2015 Financial Highlights
The following summarizes our consolidated financial results for the quarters ended September 30, 2014 and 2015 (in millions, except for per share information; unaudited):
 

 

Revenues
$
16,523
 
 
$
18,675
 
Increase in revenues year over year
 
20
%
 
 
13
%
 
 
 
 
 
 
 
 
Traffic acquisition costs (TAC)
$
3,348
 
 
$
3,566
 
 
 
 
 
 
 
 
 
GAAP operating income
$
3,724
 
 
$
4,708
 
GAAP operating margin
 
23
%
 
 
25
%
Non-GAAP operating income
$
5,357
 
 
$
6,140
 
Non-GAAP operating margin
 
32
%
 
 
33
%
 
 
 
 
 
 
 
 
GAAP net income*
$
2,739
 
 
$
3,979
 
Non-GAAP net income
$
4,299
 
 
$
5,102
 
 
 
 
 
 
 
 
 
GAAP diluted EPS for Class A and B common stock and Class C capital stock*
$
3.98
 
 
$
5.73
 
Non-GAAP diluted EPS for Class A and B common stock and Class C capital stock
$
6.25
 
 
$
7.35
 
Diluted shares (in thousands)
 
688,215
 
 
 
694,319
 
*GAAP net income and diluted EPS include Net Loss from Discontinued Operations for the three months ended September 30, 2014.
Operating income, operating margin, net income, and earnings per share (EPS) are reported on a GAAP and non-GAAP basis. Non-GAAP operating income and non-GAAP operating margin exclude stock-based compensation (SBC) expense from continuing operations. Non-GAAP net income and non-GAAP diluted EPS exclude SBC expense from continuing operations, net of the related tax benefits, as well as the impact from Net Loss from Discontinued Operations. In the third quarter of 2014, non-GAAP operating income, non-GAAP operating margin, non-GAAP net income, and non-GAAP diluted EPS also excluded an impairment charge of $378 million related to a patent licensing royalty asset acquired in connection with the purchase of Motorola. These non-GAAP measures, as well as free cash flow, an alternative non-GAAP measure of liquidity, and non-GAAP constant currency revenues and growth, are described and reconciled to the corresponding GAAP measures at the end of this release.

Q3 2015 Financial Summary
Revenues and Monetization
Revenues by source (in millions; unaudited):
 

 

 

Google websites
$
13,087
 
16
%
 
6
%
Google Network Members' websites
 
3,694
 
4
%
 
2
%
Total advertising revenues*
 
16,781
 
13
%
 
5
%
Other revenues
 
1,894
 
11
%
 
11
%
Revenues
$
18,675
 
13
%
 
5
%
*Advertising revenues are generally reported on a gross basis, consistent with GAAP, without deducting TAC.
Had foreign exchange rates remained constant from the third quarter of 2014 through the third quarter of 2015, our revenues in the third quarter of 2015 would have been $1,291 million higher with a constant currency growth rate of 21% year over year. This includes a foreign exchange rate impact of $1,577 million, offset by hedging gains of $286 million related to our foreign exchange risk management program. Our constant currency revenues are presented in the financial tables following this release as well as in the accompanying materials on the Investor Relations website.
Paid clicks and cost-per-click information (unaudited):
 


Aggregate paid clicks
23
%
 
6
%
Paid clicks on Google websites
35
%
 
7
%
Paid clicks on Google Network Members' websites
(5)
%
 
0
%
 
 
 
 
 
 
Aggregate cost-per-click
(11)
%
 
(1)
%
Cost-per-click on Google websites
(16)
%
 
(2)
%
Cost-per-click on Google Network Members' websites
(4)
%
 
1
%
Costs and Expenses
Traffic acquisition costs (TAC), other cost of revenues, operating expenses, stock-based compensation expense, and depreciation, amortization, and impairment charges (in millions; unaudited):
 

 

TAC to Google Network Members
$
2,421
 
 
$
2,514
 
TAC to distribution partners
$
927
 
 
$
1,052
 
Total TAC
$
3,348
 
 
$
3,566
 
 
 
 
 
 
 
 
 
TAC to Google Network Members as % of Google Network Members' revenues
 
68
%
 
 
68
%
TAC to distribution partners as % of Google website revenues
 
8
%
 
 
8
%
Total TAC as % of advertising revenues
 
23
%
 
 
21
%
 
 
 
 
 
 
 
 
Other cost of revenues
$
3,347
 
 
$
3,471
 
Other cost of revenues as % of revenues
 
20
%
 
 
19
%
 
 
 
 
 
 
 
 
Operating expenses (other than cost of revenues)
$
6,104
 
 
$
6,930
 
Operating expenses as % of revenues
 
37
%
 
 
37
%
 
 
 
 
 
 
 
 
Stock-based compensation expense*
$
1,255
 
 
$
1,432
 
Tax benefit related to stock-based compensation expense
$
(258)
 
 
$
(309)
 
Depreciation, amortization, and impairment charges*
$
1,524
 
 
$
1,248
 
*Included in Cost of revenues and Operating expenses. Excludes impact from discontinued operations for the three months ended September 30, 2014.
Supplemental Information (in millions except for headcount data; unaudited)
 

 

Cash, cash equivalents, and marketable securities
$
62,157
 
 
$
72,767
 
Net cash provided by operating activities
$
5,994
 
 
$
6,007
 
Capital expenditures*
$
2,417
 
 
$
2,373
 
Free cash flow
$
3,577
 
 
$
3,634
 
Effective tax rate
 
24
%
 
 
19
%
Headcount
 
51,564
 
 
 
59,976
 
*For Q3 2015, our capital expenditures are primarily related to production equipment, data center construction, and facilities.
Adjustments to Previously Reported Financial Information
In the second quarter of 2015, we identified an incorrect classification of certain revenues between legal entities, and as a consequence, we revised our income tax expense for periods beginning in 2008 through the first quarter of 2015 in the cumulative amount of $711 million. The income tax amount is not material to the periods impacted and consolidated revenues are not impacted. We elected to revise previously issued consolidated financial statements for the periods impacted.
In the first quarter of 2015, we reclassified revenues primarily related to DoubleClick ad serving software revenues from Other revenues to Advertising revenues from Google Network Members' websites. Prior period amounts have been adjusted to conform with our current period presentation.
Alphabet Reorganization
On August 10, 2015, we announced plans to create a new public holding company, Alphabet, and a new operating structure. On October 2, 2015, we announced the implementation of the holding company reorganization, in which Alphabet became the successor issuer to Google. The new operating structure is being introduced in phases. For financial reporting purposes, we expect the reorganization will result in disclosing our Google business as a single segment and all other Alphabet businesses combined as Other Bets beginning in the fourth quarter of 2015.
Stock Repurchase
The board of directors of Alphabet authorized the company to repurchase up to $5,099,019,513.59 of its Class C capital stock, commencing in the fourth quarter of 2015. The repurchase is expected to be executed from time to time, subject to general business and market conditions and other investment opportunities, through open market purchases or privately negotiated transactions, including through Rule 10b5-1 plans.
Webcast and Conference Call Information
A live audio webcast of our third quarter 2015 earnings release call will be available at http://investor.google.com/webcast.html. The call begins today at 1:30 PM (PT) / 4:30 PM (ET). This press release, the financial tables, as well as other supplemental information including the reconciliations of certain non-GAAP measures to their nearest comparable GAAP measures, are also available on that site.
We also announce investor information, including news and commentary about our business and financial performance, SEC filings, notices of investor events and our press and earnings releases, on our investor relations website (http://investor.google.com).
Forward-Looking Statements
This press release may contain forward-looking statements that involve risks and uncertainties. Actual results may differ materially from the results predicted, and reported results should not be considered as an indication of future performance. The potential risks and uncertainties that could cause actual results to differ from the results predicted include, among others, those risks and uncertainties included under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K for the year ended December 31, 2014 and our most recent Quarterly Report on Form 10-Q for the quarter ended June 30, 2015, which are on file with the SEC and are available on our investor relations website at investor.google.com and on the SEC website at www.sec.gov. Additional information will also be set forth in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2015. All information provided in this release and in the attachments is as of October 22, 2015, and we undertake no duty to update this information unless required by law.
About Non-GAAP Financial Measures
To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we use the following non-GAAP financial measures: non-GAAP operating income, non-GAAP operating margin, non-GAAP net income, non-GAAP diluted EPS, free cash flow, non-GAAP constant currency revenues, and non-GAAP constant currency revenue growth. The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.
We use these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. Our management believes that these non-GAAP financial measures provide meaningful supplemental information regarding our performance and liquidity by excluding certain expenses and expenditures that may not be indicative of our recurring core business operating results, such as our revenues excluding the impact for foreign currency fluctuations or our operating performance excluding not only non-cash charges, such as SBC, but also discrete cash charges that are infrequent in nature. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting, and analyzing future periods. These non-GAAP financial measures also facilitate management's internal comparisons to our historical performance and liquidity as well as comparisons to our competitors' operating results. We believe these non-GAAP financial measures are useful to investors both because (1) they allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making and (2) they are used by our institutional investors and the analyst community to help them analyze the health of our business.
For more information on these non-GAAP financial measures, please see the tables captioned "Reconciliations of non-GAAP results of operations to the nearest comparable GAAP measures," "Reconciliation from net cash provided by operating activities to free cash flow," and "Reconciliation from GAAP revenues to non-GAAP constant currency revenues" included at the end of this release.
Contact
Investor Relations
investor-relations@google.com
Media
press@google.com

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Wednesday, October 7, 2015

Google News - Investor Relations - Google: Alphabet Announces Date of Third Quarter 2015 Financial Results Conference Call

Google News - Investor Relations - Google

News for Google's Investor Relations

Alphabet Announces Date of Third Quarter 2015 Financial Results Conference Call
https://investor.google.com/releases/2015/1007.html
Oct 7th 2015, 21:28


MOUNTAIN VIEW, Calif. (October 7, 2015) – On October 2, 2015, Alphabet Inc. (NASDAQ: GOOG, GOOGL) became the successor issuer to, and parent holding company of, Google Inc. in order to implement a previously announced holding company reorganization. Alphabet will hold a quarterly conference call on Thursday, October 22nd, at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time) to discuss the third quarter 2015 financial results of Google as it existed prior to the reorganization.
The live webcast of the earnings conference call can be accessed at investor.google.com/webcast.html. A replay of the webcast will be available through the same link following the conference call. Please visit the Investor Relations website at investor.google.com on October 22, 2015 to view the earnings release prior to the conference call.
About Alphabet Inc.
Larry Page and Sergey Brin founded Google in September 1998. Since then, the company has grown to more than 50,000 employees worldwide, with a wide range of popular products and platforms like Search, Maps, Ads, Gmail, Android, Chrome, and YouTube. In October 2015, Alphabet became the parent holding company of Google. You can read more about Alphabet's mission here.
Contact
Investor Relations
investor-relations@google.com

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Wednesday, September 9, 2015

Google News - Investor Relations - Google: Google Announces Plans for New Operating Structure

Google News - Investor Relations - Google

News for Google's Investor Relations

Google Announces Plans for New Operating Structure
https://investor.google.com/releases/2015/0810.html
Sep 9th 2015, 22:38

August 10, 2015
G is for Google.
As Sergey and I wrote in the original founders letter 11 years ago, "Google is not a conventional company. We do not intend to become one." As part of that, we also said that you could expect us to make "smaller bets in areas that might seem very speculative or even strange when compared to our current businesses." From the start, we've always strived to do more, and to do important and meaningful things with the resources we have.
We did a lot of things that seemed crazy at the time. Many of those crazy things now have over a billion users, like Google Maps, YouTube, Chrome, and Android. And we haven't stopped there. We are still trying to do things other people think are crazy but we are super excited about.
We've long believed that over time companies tend to get comfortable doing the same thing, just making incremental changes. But in the technology industry, where revolutionary ideas drive the next big growth areas, you need to be a bit uncomfortable to stay relevant.
Our company is operating well today, but we think we can make it cleaner and more accountable. So we are creating a new company, called Alphabet. I am really excited to be running Alphabet as CEO with help from my capable partner, Sergey, as President.
What is Alphabet? Alphabet is mostly a collection of companies. The largest of which, of course, is Google. This newer Google is a bit slimmed down, with the companies that are pretty far afield of our main internet products contained in Alphabet instead. What do we mean by far afield? Good examples are our health efforts: Life Sciences (that works on the glucose-sensing contact lens), and Calico (focused on longevity). Fundamentally, we believe this allows us more management scale, as we can run things independently that aren't very related.
Alphabet is about businesses prospering through strong leaders and independence. In general, our model is to have a strong CEO who runs each business, with Sergey and me in service to them as needed. We will rigorously handle capital allocation and work to make sure each business is executing well. We'll also make sure we have a great CEO for each business, and we'll determine their compensation. In addition, with this new structure we plan to implement segment reporting for our Q4 results, where Google financials will be provided separately than those for the rest of Alphabet businesses as a whole.
This new structure will allow us to keep tremendous focus on the extraordinary opportunities we have inside of Google. A key part of this is Sundar Pichai. Sundar has been saying the things I would have said (and sometimes better!) for quite some time now, and I've been tremendously enjoying our work together. He has really stepped up since October of last year, when he took on product and engineering responsibility for our internet businesses. Sergey and I have been super excited about his progress and dedication to the company. And it is clear to us and our board that it is time for Sundar to be CEO of Google. I feel very fortunate to have someone as talented as he is to run the slightly slimmed down Google and this frees up time for me to continue to scale our aspirations. I have been spending quite a bit of time with Sundar, helping him and the company in any way I can, and I will of course continue to do that. Google itself is also making all sorts of new products, and I know Sundar will always be focused on innovation—continuing to stretch boundaries. I know he deeply cares that we can continue to make big strides on our core mission to organize the world's information. Recent launches like Google Photos and Google Now using machine learning are amazing progress. Google also has some services that are run with their own identity, like YouTube. Susan is doing a great job as CEO, running a strong brand and driving incredible growth.
Sergey and I are seriously in the business of starting new things. Alphabet will also include our X lab, which incubates new efforts like Wing, our drone delivery effort. We are also stoked about growing our investment arms, Ventures and Capital, as part of this new structure.
Alphabet Inc. will replace Google Inc. as the publicly-traded entity and all shares of Google will automatically convert into the same number of shares of Alphabet, with all of the same rights. Google will become a wholly-owned subsidiary of Alphabet. Our two classes of shares will continue to trade on Nasdaq as GOOGL and GOOG.
For Sergey and me this is a very exciting new chapter in the life of Google—the birth of Alphabet. We liked the name Alphabet because it means a collection of letters that represent language, one of humanity's most important innovations, and is the core of how we index with Google search! We also like that it means alpha‑bet (Alpha is investment return above benchmark), which we strive for! I should add that we are not intending for this to be a big consumer brand with related products—the whole point is that Alphabet companies should have independence and develop their own brands.
We are excited about...
Getting more ambitious things done.
Taking the long-term view.
Empowering great entrepreneurs and companies to flourish.
Investing at the scale of the opportunities and resources we see.
Improving the transparency and oversight of what we're doing.
Making Google even better through greater focus.
And hopefully... as a result of all this, improving the lives of as many people as we can.
What could be better? No wonder we are excited to get to work with everyone in the Alphabet family. Don't worry, we're still getting used to the name too!

Larry Page
CEO, Alphabet
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Thursday, July 16, 2015

Google News - Investor Relations - Google: Google Inc. Announces Second Quarter 2015 Results

Google News - Investor Relations - Google

News for Google's Investor Relations

Google Inc. Announces Second Quarter 2015 Results
https://investor.google.com/earnings/2015/Q2_google_earnings.html
Jul 16th 2015, 20:02

Revenues of $17.7 billion and revenue growth of 11% year over year; constant currency revenue growth of 18% year over year
Strong performance of core search business, particularly mobile, complemented by growth in YouTube and Programmatic Advertising
GAAP and non-GAAP operating income grew 13% and 16%, respectively, year over year
GAAP diluted EPS for Class A and B common stock and Class C capital stock of $4.93 and $6.43, respectively, and non-GAAP diluted EPS of $6.99
Strong operating cash flow of $7.0 billion
MOUNTAIN VIEW, Calif. – July 16, 2015 – Google Inc. (NASDAQ: GOOG, GOOGL) today announced financial results for the quarter ended June 30, 2015.
"Our strong Q2 results reflect continued growth across the breadth of our products, most notably core search, where mobile stood out, as well as YouTube and programmatic advertising", said Ruth Porat, CFO of Google. "We are focused every day on developing big new opportunities across a wide range of businesses. We will do so with great care regarding resource allocation."

Q2 2015 Financial Highlights
The following summarizes our consolidated financial results for the quarters ended June 30, 2014 and 2015 (in millions, except for per share information; unaudited):
 

 

Revenues
$
15,955
 
 
$
17,727
 
Increase in revenues year over year
 
22
%
 
 
11
%
 
 
 
 
 
 
 
 
Traffic acquisition costs (TAC)
$
3,293
 
 
$
3,377
 
 
 
 
 
 
 
 
 
GAAP operating income
$
4,258
 
 
$
4,825
 
GAAP operating margin
 
27
%
 
 
27
%
Non-GAAP operating income
$
5,138
 
 
$
5,957
 
Non-GAAP operating margin
 
32
%
 
 
34
%
 
 
 
 
 
 
 
 
GAAP net income*
$
3,351
 
 
$
3,931
 
Non-GAAP net income
$
4,104
 
 
$
4,829
 
 
 
 
 
 
 
 
 
GAAP diluted EPS for Class A and B common stock*
$
4.88
 
 
$
4.93
 
GAAP diluted EPS for Class C capital stock*
$
4.88
 
 
$
6.43
 
Non-GAAP diluted EPS for Class A and B common stock and Class C capital stock
 
5.98
 
 
$
6.99
 
*GAAP net income and diluted EPS include Net Loss from Discontinued Operations for the three months ended June 30, 2014.
Operating income, operating margin, net income, and earnings per share (EPS) are reported on a GAAP and non-GAAP basis. Non-GAAP operating income and non-GAAP operating margin exclude stock-based compensation (SBC) expense from continuing operations. Non-GAAP net income and non-GAAP diluted EPS exclude SBC expense from continuing operations, net of the related tax benefits, as well as the impact from Net Loss from Discontinued Operations. Non-GAAP diluted EPS also excludes the impact from the adjustment payment to Class C capital stockholders. These non-GAAP measures, as well as free cash flow, an alternative non-GAAP measure of liquidity, and non-GAAP constant currency revenues and growth, are described and reconciled to the corresponding GAAP measures at the end of this release.
Adjustment Payment in Relation to Class C Capital Stock Distribution
In May 2015, we paid $522 million to the holders of Class C capital stock in the form of approximately 853 thousand shares of Class C capital stock and $47 million of cash in lieu of fractional shares of Class C capital stock, in accordance with the settlement of litigation involving the authorization to distribute Class C capital stock (the Adjustment Payment). The Adjustment Payment was allocated to the numerator for calculating net income per share of Class C capital stock from net income available to all stockholders and the remaining undistributed earnings were allocated on a pro rata basis to Class A and Class B common stock and Class C capital stock based on the number of shares used in the per share computation for each class of stock. The weighted-average share impact of the Adjustment Payment is included in the denominator of both basic and diluted net income per share computations for the three and six months ended June 30, 2015.

Q2 2015 Financial Summary
Revenues and Monetization
Revenues by source (in millions; unaudited):
 

 

 

Google websites
$
12,402
 
13
%
 
4
%
Google Network Members' websites
 
3,621
 
2
%
 
1
%
Total advertising revenues*
 
16,023
 
11
%
 
3
%
Other revenues
 
1,704
 
17
%
 
(3)
%
Revenues
$
17,727
 
11
%
 
3
%
*Advertising revenues are generally reported on a gross basis, consistent with GAAP, without deducting TAC.
Had foreign exchange rates remained constant from the second quarter of 2014 through the second quarter of 2015, our revenues in the second quarter of 2015 would have been $1,103 million higher with a constant currency growth rate of 18% year over year. This includes a foreign exchange rate impact of $1,574 million, offset by hedging gains of $471 million related to our foreign exchange risk management program. Our constant currency revenues are presented in the financial tables following this release as well as in the accompanying materials on the Investor Relations website.
Paid clicks and cost-per-click information (unaudited):
 

 

Aggregate paid clicks
18
%
 
7
%
Paid clicks on Google websites
30
%
 
10
%
Paid clicks on Google Network Members' websites
(9)
%
 
(2)
%
 
 
 
 
 
 
Aggregate cost-per-click
(11)
%
 
(4)
%
Cost-per-click on Google websites
(16)
%
 
(5)
%
Cost-per-click on Google Network Members' websites
(3)
%
 
(3)
%
Costs and Expenses
Traffic acquisition costs (TAC), other cost of revenues, operating expenses, stock-based compensation expense, and depreciation and amortization expense (in millions; unaudited):
 

 

TAC to Google Network Members
$
2,400
 
 
$
2,432
 
TAC to distribution partners
$
893
 
 
$
945
 
Total TAC
$
3,293
 
 
$
3,377
 
 
 
 
 
 
 
 
 
TAC to Google Network Members as % of Google Network Members' revenues
 
67
%
 
 
67
%
TAC to distribution partners as % of Google Website revenues
 
8
%
 
 
8
%
Total TAC as % of advertising revenues
 
23
%
 
 
21
%
 
 
 
 
 
 
 
 
Other cost of revenues
$
2,821
 
 
$
3,206
 
Other cost of revenue as % of revenues
 
18
%
 
 
18
%
 
 
 
 
 
 
 
 
Operating expenses (other than cost of revenues)
$
5,583
 
 
$
6,319
 
Operating expenses as % of revenues
 
35
%
 
 
36
%
 
 
 
 
 
 
 
 
Stock-based compensation expense*
$
880
 
 
$
1,132
 
Tax benefit related to stock-based compensation expense
$
(195)
 
 
$
(234)
 
Depreciation, amortization, and impairment charges*
$
1,079
 
 
$
1,234
 
*Included in Cost of revenues and Operating expenses. Excludes impact from discontinued operations for the three months ended June 30, 2014.
Supplemental Information (in millions except for headcount data; unaudited)
 

 

Cash, cash equivalents, and marketable securities
$
61,204
 
 
$
69,780
 
Net cash provided by operating activities
$
5,627
 
 
$
6,985
 
Capital expenditures*
$
2,646
 
 
$
2,515
 
Free cash flow
$
2,981
 
 
$
4,470
 
Effective tax rate
 
22
%
 
 
21
%
Headcount
 
48,584
 
 
 
57,148
 
*For Q2 2015, our capital expenditures are primarily related to production equipment and data center construction.
Adjustments to Previously Reported Financial Information
In the second quarter of 2015, we identified an incorrect classification of certain revenues between legal entities, and as a consequence, we revised our income tax expense for periods beginning in 2008 through the first quarter of 2015 in the cumulative amount of $711 million. The income tax amount is not material to the periods impacted and consolidated revenues are not impacted. We have elected to revise previously issued consolidated financial statements in our upcoming filings to correct prior periods. Please refer to the supplementary slides posted on our Investor Relations website for revised historical financial information.
In the first quarter of 2015, we reclassified revenues primarily related to DoubleClick ad serving software revenues from Other revenues to Advertising revenues from Google Network Members' Websites. Prior period amounts have been adjusted to conform with our current period presentation.
Webcast and Conference Call Information
A live audio webcast of Google's second quarter 2015 earnings release call will be available at http://investor.google.com/webcast.html. The call begins today at 1:30 PM (PT) / 4:30 PM (ET). This press release, the financial tables, as well as other supplemental information including the reconciliations of certain non-GAAP measures to their nearest comparable GAAP measures, are also available on that site.
We also announce investor information, including news and commentary about our business and financial performance, SEC filings, notices of investor events and our press and earnings releases, on our investor relations website (http://investor.google.com).
Forward-Looking Statements
This press release may contain forward-looking statements that involve risks and uncertainties. Actual results may differ materially from the results predicted, and reported results should not be considered as an indication of future performance. The potential risks and uncertainties that could cause actual results to differ from the results predicted include, among others, those risks and uncertainties included under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K for the year ended December 31, 2014 and our most recent Quarterly Report on Form 10-Q for the quarter ended March 31, 2015, which are on file with the SEC and are available on our investor relations website at investor.google.com and on the SEC website at www.sec.gov. Additional information will also be set forth in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2015. All information provided in this release and in the attachments is as of July 16, 2015, and we undertake no duty to update this information unless required by law.
About Non-GAAP Financial Measures
To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we use the following non-GAAP financial measures: non-GAAP operating income, non-GAAP operating margin, non-GAAP net income, non-GAAP diluted EPS, free cash flow, non-GAAP constant currency revenues, and non-GAAP constant currency revenue growth. The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.
We use these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. Our management believes that these non-GAAP financial measures provide meaningful supplemental information regarding our performance and liquidity by excluding certain expenses and expenditures that may not be indicative of our recurring core business operating results, such as our revenues excluding the impact for foreign currency fluctuations or our operating performance excluding not only non-cash charges, such as SBC, but also discrete cash charges that are infrequent in nature. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting, and analyzing future periods. These non-GAAP financial measures also facilitate management's internal comparisons to our historical performance and liquidity as well as comparisons to our competitors' operating results. We believe these non-GAAP financial measures are useful to investors both because (1) they allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making and (2) they are used by our institutional investors and the analyst community to help them analyze the health of our business.
For more information on these non-GAAP financial measures, please see the tables captioned "Reconciliations of non-GAAP results of operations to the nearest comparable GAAP measures," "Reconciliation from net cash provided by operating activities to free cash flow," and "Reconciliation from GAAP revenues to non-GAAP constant currency revenues" included at the end of this release.
Contact
Investor Relations
investor-relations@google.com
Media
press@google.com

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Monday, July 6, 2015

Google News - Investor Relations - Google: Google Announces Date of Second Quarter 2015 Financial Results Conference Call

Google News - Investor Relations - Google

News for Google's Investor Relations

Google Announces Date of Second Quarter 2015 Financial Results Conference Call
https://investor.google.com/releases/2015/0706.html
Jul 6th 2015, 19:05


MOUNTAIN VIEW, Calif. (July 6, 2015) – Google Inc. (NASDAQ: GOOG, GOOGL) will hold its quarterly conference call to discuss second quarter 2015 financial results on Thursday, July 16th at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time).
The live webcast of Google's earnings conference call can be accessed at investor.google.com/webcast.html. A replay of the webcast will be available through the same link following the conference call. Please visit Google's Investor Relations website at investor.google.com on July 16, 2015 to view the earnings release prior to the conference call.
About Google Inc.
Google is a global technology leader focused on improving the ways people connect with information. Google's innovations in web search and advertising have made its website a top internet property and its brand one of the most recognized in the world.
Contact
Investor Relations
investor-relations@google.com

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