Alphabet Inc Q3 2020 overview

Q3 2020 Report (Form 10-Q) provide insight into Google and YouTube business as well as businesses under category “other bets”. Global pandemic did not have negative monetary effect on Alphabet Inc businesses. Because of lockdowns and limitations imposed by governments user’s started spending more time online. That grown the revenue from ads and reflected in profit & loss account. Shift from offline to online life will benefit Alphabet Inc.

Alphabet Inc consolidated statements of income for Q3 2020

  1. Revenue $46,2B (revenue growth of 14% year over year).
  2. Revenues from the United States, EMEA, APAC, and Other Americas were $21.4B, $13.9B, $8.5B, and $2.4B, respectively.
  3. Number of employees was 132,121 as of September 30, 2020. 
  4. Total cost and expenses $35B (cost of revenue $21B; research and development $6,8B; sales and marketing $4B; general and administrative $2,7B).
  5. Income from operations $11,2B.
  6. Other income (expense), net $2,1B.
  7. Income before income taxes $13,3B.
  8. Provision for income taxes $2,1B.
  9. Net income $11,247B.
  10. Basic net income per share of Class A and B common stock and Class C capital stock $16,55.
  11. Diluted net income per share of Class A and B common stock and Class C capital stock $16,40.

In November 2019, the company entered into an agreement to acquire Fitbit for $7.35 per share (total purchase price is $2.1B). There’s still needed to obtain the necessary regulatory approvals to close the transaction in 2020.

In July 2019, the Board of Directors of Alphabet Inc authorised to repurchase up to $25B of Class C capital stock (completed in Q3 2020). In July 2020, the Board of Directors of Alphabet Inc authorised to repurchase up to an additional $28B of Class C capital stock. The repurchase program doesn’t have an expiration date.

Alphabet Inc projected further growth. Users spend more time online and for company it’s new opportunities to generate revenue and profit.

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