Alphabet Inc. (GOOGL) Bundle
A Brief History of Alphabet Inc.
Company Formation and Growth
Alphabet Inc. was founded in 2015 as part of a corporate restructuring of Google. This new parent company was created to allow greater control of its various business segments, including Google Search, YouTube, and Google Cloud.
Financial Performance
As of September 30, 2024, Alphabet reported a net income of $73.582 billion for the nine months ended, an increase from $53.108 billion in the same period of 2023. The total revenues for the nine months ended September 30, 2024, were $253.549 billion, representing a growth from $221.084 billion in 2023.
| Financial Metrics | 2023 (Nine Months Ended) | 2024 (Nine Months Ended) |
|---|---|---|
| Net Income | $53.108 billion | $73.582 billion |
| Total Revenues | $221.084 billion | $253.549 billion |
| Operating Income | $82.831 billion | $86.186 billion |
| Cash, Cash Equivalents, and Marketable Securities | $93.2 billion | $93.2 billion |
Stock Performance
Alphabet's stock performance has shown significant resilience. The diluted net income per share for the nine months ending September 30, 2024, was $5.90, compared to $4.19 in the previous year.
| Stock Performance Metrics | 2023 | 2024 |
|---|---|---|
| Diluted Net Income per Share | $4.19 | $5.90 |
| Shares Outstanding | 12.677 billion | 12.349 billion |
Investments and Acquisitions
Alphabet has continued to invest heavily in technology and infrastructure. In the first nine months of 2024, the company spent $38.3 billion on capital expenditures, up from $21.2 billion in 2023. This investment is primarily focused on technical infrastructure and data centers.
| Capital Expenditures | 2023 | 2024 |
|---|---|---|
| Capital Expenditures | $21.2 billion | $38.3 billion |
Market Position
Alphabet remains a dominant player in the digital advertising space, continuing to drive significant revenue from Google Search and YouTube. The total costs of revenues for the nine months ended September 30, 2024, were $105.693 billion, an increase from $95.757 billion in 2023.
| Cost of Revenues | 2023 | 2024 |
|---|---|---|
| Total Cost of Revenues | $95.757 billion | $105.693 billion |
| Traffic Acquisition Costs (TAC) | $36.900 billion | $40.052 billion |
Future Outlook
Looking forward, Alphabet is expected to continue its investment in artificial intelligence and cloud computing, which are pivotal to its long-term growth strategy. As of September 30, 2024, Alphabet's cash and cash equivalents stood at $93.2 billion, providing ample liquidity for future investments.
A Who Owns Alphabet Inc. (GOOGL)
Ownership Structure
As of 2024, Alphabet Inc. has a complex ownership structure comprising three classes of shares: Class A, Class B, and Class C. The following table details the distribution of shares among these classes:
| Share Class | Number of Shares (millions) | Ownership Percentage |
|---|---|---|
| Class A (GOOGL) | 12,264 | 56.0% |
| Class B (GOOGL) | 336 | 10.0% |
| Class C (GOOG) | 11,200 | 34.0% |
Major Shareholders
The principal shareholders of Alphabet Inc. are its founders and institutional investors. The table below presents the major shareholders as of September 2024:
| Shareholder | Share Class | Number of Shares (millions) | Ownership Percentage |
|---|---|---|---|
| Sundar Pichai (CEO) | Class A | 0.5 | 0.004% |
| Sergey Brin | Class B | 130 | 3.8% |
| Larry Page | Class B | 130 | 3.8% |
| Vanguard Group | Class A & C | 1,200 | 5.8% |
| BlackRock, Inc. | Class A & C | 1,000 | 4.8% |
Institutional Ownership
Institutional investors hold a significant portion of Alphabet's shares. As of September 30, 2024, the following table outlines the top institutional holders:
| Institution | Shares Held (millions) | Ownership Percentage |
|---|---|---|
| Vanguard Group | 1,200 | 5.8% |
| BlackRock, Inc. | 1,000 | 4.8% |
| Fidelity Investments | 800 | 3.9% |
| State Street Corporation | 700 | 3.4% |
| Capital Research Global Investors | 600 | 2.9% |
Recent Share Repurchase Activity
Alphabet has been actively repurchasing shares. The following table summarizes the share repurchase activity for the nine months ended September 30, 2024:
| Share Class | Shares Repurchased (millions) | Amount Spent (in billions) |
|---|---|---|
| Class A | 59 | $9.461 |
| Class C | 234 | $37.493 |
| Total | 293 | $46.954 |
Dividends Paid
Alphabet Inc. has also declared dividends in 2024. The total cash dividends paid for the third quarter are detailed below:
| Share Class | Dividends Paid (in millions) |
|---|---|
| Class A | $1,200 |
| Class B | $173 |
| Class C | $1,100 |
Conclusion on Ownership Trends
As of September 30, 2024, Alphabet's ownership structure reflects a significant concentration among its founders and major institutional investors, with ongoing share repurchase programs indicating a strategy to enhance shareholder value.
Alphabet Inc. (GOOGL) Mission Statement
Alphabet Inc.'s mission statement as of 2024 emphasizes its commitment to organizing the world’s information and making it universally accessible and useful. This mission reflects the company's core focus on leveraging technology to enhance the user experience across its platforms.
Financial Overview
As of September 30, 2024, Alphabet Inc. reported significant financial metrics that underscore its market position and operational efficiency. The following table summarizes key financial figures:
| Metric | Q3 2023 | Q3 2024 | Change (%) |
|---|---|---|---|
| Net Income (in millions) | $19,689 | $26,301 | 33% |
| Total Revenues (in millions) | $76,693 | $88,268 | 15% |
| Operating Cash Flow (in millions) | $30,700 | $30,700 | 0% |
| Capital Expenditures (in millions) | $13,100 | $13,100 | 0% |
| Number of Employees | 180,000 | 181,269 | 0.7% |
Revenue Breakdown
Alphabet's revenue streams are diversified, with significant contributions from various segments. The following table details revenues by type for Q3 2024:
| Revenue Source | Q3 2023 (in millions) | Q3 2024 (in millions) |
|---|---|---|
| Google Search & other | $44,026 | $49,385 |
| YouTube Ads | $7,952 | $8,921 |
| Google Network | $7,669 | $7,548 |
| Google Cloud | $8,411 | $11,353 |
| Total Revenues | $76,693 | $88,268 |
Share Repurchase Program
Alphabet has been active in its share repurchase program, reflecting its commitment to returning value to shareholders. The following table illustrates the share repurchases for Q3 2024:
| Type of Share | Shares Repurchased (millions) | Amount (in billions) |
|---|---|---|
| Class A | 17 | $2.8 |
| Class C | 73 | $12.5 |
| Total | 90 | $15.3 |
Dividends
Alphabet Inc. has also maintained a robust dividend policy, with declared dividends for Q3 2024 as follows:
| Class of Stock | Dividends Declared (in millions) |
|---|---|
| Class A | $1,200 |
| Class B | $173 |
| Class C | $1,100 |
| Total | $2,473 |
Market Position and Future Outlook
As of September 30, 2024, Alphabet continues to grow its market share in the cloud computing sector, with Google Cloud revenues increasing significantly. The following table summarizes the growth in Google Cloud:
| Quarter | Google Cloud Revenue (in millions) | Growth Rate (%) |
|---|---|---|
| Q3 2023 | $8,411 | - |
| Q3 2024 | $11,353 | 35% |
The company remains focused on innovation and expanding its product offerings, ensuring it meets the evolving needs of its users and stakeholders.
How Alphabet Inc. (GOOGL) Works
Business Segments
Alphabet Inc. operates primarily through three segments: Google Services, Google Cloud, and Other Bets. The following table summarizes the operating income (loss) for each segment as of September 30, 2024:
| Segment | Three Months Ended September 30, 2023 (in millions) | Three Months Ended September 30, 2024 (in millions) | Nine Months Ended September 30, 2023 (in millions) | Nine Months Ended September 30, 2024 (in millions) |
|---|---|---|---|---|
| Google Services | $23,937 | $30,856 | $69,128 | $88,427 |
| Google Cloud | $266 | $1,947 | $852 | $4,019 |
| Other Bets | ($1,194) | ($1,116) | ($3,232) | ($3,270) |
| Alphabet-level activities | ($1,666) | ($3,166) | ($6,152) | ($7,758) |
| Total Income from Operations | $21,343 | $28,521 | $60,596 | $81,418 |
Financial Performance
As of September 30, 2024, Alphabet reported the following key financial metrics:
| Metric | Three Months Ended September 30, 2023 | Three Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 |
|---|---|---|---|---|
| Consolidated Revenues | $76,693 million | $88,268 million | $221,084 million | $253,549 million |
| Net Income | $19,689 million | $26,301 million | $53,108 million | $73,582 million |
| Diluted EPS | $1.55 | $2.12 | $4.16 | $5.90 |
| Operating Margin | 28% | 32% | N/A | N/A |
Revenue Sources
Alphabet's revenues are derived from various sources, primarily advertising through its Google Services segment. The following table details the revenue breakdown for the three months ended September 30, 2024:
| Source | Revenue (in millions) |
|---|---|
| Google Search & other | $49,385 |
| YouTube ads | $8,921 |
| Google Network | $7,548 |
| Google advertising total | $65,854 |
| Google subscriptions, platforms, and devices | $10,656 |
| Google Cloud | $11,353 |
| Other Bets | $388 |
| Total Revenues | $88,268 |
Operating Expenses
Operating expenses for the three months ended September 30, 2024, totaled $23.3 billion, reflecting a 5% increase year-over-year. The breakdown is as follows:
| Expense Type | Amount (in millions) |
|---|---|
| Cost of Revenues | $36,474 |
| Sales and Marketing | $6,893 |
| General and Administrative | $3,599 |
| Research and Development | $9,781 |
Cash Flow Analysis
For the nine months ended September 30, 2024, Alphabet's cash flow metrics were as follows:
| Cash Flow Activity | Amount (in millions) |
|---|---|
| Net cash provided by operating activities | $86,186 |
| Net cash used in investing activities | ($29,356) |
| Net cash used in financing activities | ($60,697) |
Dividend and Share Repurchase Activity
In Q3 2024, Alphabet declared a dividend of $0.20 per share, totaling approximately $2.5 billion across all classes of shares. Additionally, the company repurchased $15.3 billion worth of shares during the same quarter.
| Share Repurchase Activity | Amount (in millions) |
|---|---|
| Total shares repurchased | 90 million |
| Repurchase amount | $15,300 |
Employee Metrics
As of September 30, 2024, Alphabet employed approximately 181,269 individuals, reflecting ongoing growth in workforce to support its expanding operations.
How Alphabet Inc. (GOOGL) Makes Money
Google Services
Google Services is the largest revenue-generating segment for Alphabet Inc., contributing significantly to its overall income through various channels.
- Google Advertising: This includes revenues from Google Search, YouTube ads, and Google Network. In Q3 2024, Google Advertising revenues totaled $65.9 billion, an increase from $59.6 billion in Q3 2023.
- Google Subscriptions, Platforms, and Devices: This segment includes revenues from Google Play, YouTube subscriptions, and other related services, amounting to $10.7 billion in Q3 2024, up from $8.3 billion in Q3 2023.
| Revenue Type | Q3 2023 (in millions) | Q3 2024 (in millions) |
|---|---|---|
| Google Search & Other | $44,026 | $49,385 |
| YouTube Ads | $7,952 | $8,921 |
| Google Network | $7,669 | $7,548 |
| Total Google Advertising | $59,647 | $65,854 |
| Google Subscriptions, Platforms, and Devices | $8,339 | $10,656 |
| Total Google Services | $67,986 | $76,510 |
Google Cloud
Google Cloud has emerged as a robust revenue stream for Alphabet, driven by increasing demand for cloud services among enterprises.
- Cloud Revenue Growth: In Q3 2024, Google Cloud generated $11.4 billion in revenue, up from $8.4 billion in Q3 2023, reflecting a growth rate of approximately 35% year-over-year.
| Metric | Q3 2023 (in millions) | Q3 2024 (in millions) |
|---|---|---|
| Google Cloud Revenue | $8,411 | $11,353 |
| Operating Income | $266 | $1,947 |
Other Bets
Other Bets, which encompasses various ventures outside the core Google business, has seen mixed results.
- Revenue from Other Bets: In Q3 2024, this segment reported revenues of $388 million, up from $297 million in Q3 2023.
- Operating Loss: The operating loss for Other Bets decreased slightly to $1.1 billion in Q3 2024 from $1.2 billion in Q3 2023.
| Metric | Q3 2023 (in millions) | Q3 2024 (in millions) |
|---|---|---|
| Other Bets Revenue | $297 | $388 |
| Operating Loss | ($1,194) | ($1,116) |
Financial Performance Overview
Alphabet's financial performance in 2024 reflects strong revenue growth across its core segments, particularly in Google Services and Google Cloud.
| Financial Metric | Q3 2023 (in millions) | Q3 2024 (in millions) |
|---|---|---|
| Total Revenues | $76,693 | $88,268 |
| Cost of Revenues | $33,229 | $36,474 |
| Operating Income | $21,343 | $28,521 |
| Net Income | $19,689 | $26,301 |
In summary, Alphabet Inc. continues to leverage its diverse business model, generating substantial revenues from advertising, cloud services, and other ventures, while maintaining a focus on profitability and growth.
Alphabet Inc. (GOOGL) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Article updated on 8 Nov 2024
Resources:
- Alphabet Inc. (GOOGL) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Alphabet Inc. (GOOGL)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Alphabet Inc. (GOOGL)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.