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Google Announces Fourth Quarter and Fiscal Year 2023 Results [pdf]

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Re: Google Announces Fourth Quarter and Fiscal Year 2023 Results [pdf]

#11

Post by methodical »

etamponi wrote: post #3
samspenc wrote: post #2

Summary from the release for Q4: - Revenue increased from $76B to $86B (13% increase) - Operating income increased $18.1B to $23.7B - Net income increased $13.6B to $20.7B - Diluted EPS increased $1.05 to $1.64

Okay so why is GOOG -4% in after hours this time? :)

Without being an expert in these matters it could be that while the earnings were good they may have already been "priced in"[0], so if the earnings weren't quite as high as expected or particular areas of revenue have contracted unexpectedly[1] then it could cause the price to move downwards. It could also be a result of larger market fluctuations, as a lot of larger F100 companies have also gone down by a similar amount today[2]. Any one of these factors or a combination of them together is likely the cause of the stock price movement seen today.

[0] https://www.kotaksecurities.com/articles/it-is-priced-in-wha...

[1] https://finance.yahoo.com/news/alphabet-misses-expectations-...

[2] https://www.investors.com/market-trend/stock-market-today/do...

Re: Google Announces Fourth Quarter and Fiscal Year 2023 Results [pdf]

#12

Post by candiddevmike »

tra3 wrote: post #4

This caught my eye, total employees - 2022: 190,234 - 2023: 182,502 Total increase in revenue of 10 billion. Not sure what conclusion to draw from this, but being a software engineer I found employment count interesting. Though 5% change in head count seems hardly major.

That doesn't include the army of contractors they have/had that were laid off.

Re: Google Announces Fourth Quarter and Fiscal Year 2023 Results [pdf]

#13

Post by bqmjjx0kac »

tra3 wrote: post #4

This caught my eye, total employees - 2022: 190,234 - 2023: 182,502 Total increase in revenue of 10 billion. Not sure what conclusion to draw from this, but being a software engineer I found employment count interesting. Though 5% change in head count seems hardly major.

Clearly, those 8000 employees were producing -$10,000,000,000 per year.

Re: Google Announces Fourth Quarter and Fiscal Year 2023 Results [pdf]

#14

Post by Kluggy »

jeffbee wrote: post #8
resolutebat wrote: post #5

Google Cloud made $864M in profit in a single quarter, more than ever before. Google Bets lost $86 3 M in the same period, much less than ever before.

I wonder if that is good news. You can look at it either as they slowed how much money they pour into the moonshots incinerator, or they stopped investing in potential unicorn lines of business.

I think they have proved that it's a incinerator at this point.

Re: Google Announces Fourth Quarter and Fiscal Year 2023 Results [pdf]

#15

Post by VirusNewbie »

etamponi wrote: post #3
samspenc wrote: post #2

Summary from the release for Q4: - Revenue increased from $76B to $86B (13% increase) - Operating income increased $18.1B to $23.7B - Net income increased $13.6B to $20.7B - Diluted EPS increased $1.05 to $1.64

Okay so why is GOOG -4% in after hours this time? :)

I think this happens every quarter.

Re: Google Announces Fourth Quarter and Fiscal Year 2023 Results [pdf]

#16

Post by saiya-jin »

tra3 wrote: post #4

This caught my eye, total employees - 2022: 190,234 - 2023: 182,502 Total increase in revenue of 10 billion. Not sure what conclusion to draw from this, but being a software engineer I found employment count interesting. Though 5% change in head count seems hardly major.

Well, if total average costs per employee for G would be very roughly 1 million, there you have it. I think it may be half of that if at all, but it impacts the increased revenue significantly in any case.

Re: Google Announces Fourth Quarter and Fiscal Year 2023 Results [pdf]

#17

Post by BillSaysThis »

etamponi wrote: post #3
samspenc wrote: post #2

Summary from the release for Q4: - Revenue increased from $76B to $86B (13% increase) - Operating income increased $18.1B to $23.7B - Net income increased $13.6B to $20.7B - Diluted EPS increased $1.05 to $1.64

Okay so why is GOOG -4% in after hours this time? :)

After hours trading is also usually more volatile than regular hours, check in the morning and see where $GOOG actually opens.

Re: Google Announces Fourth Quarter and Fiscal Year 2023 Results [pdf]

#18

Post by boomfunky »

atorodius wrote: post #9
mydogcanpurr wrote: post #7

Earlier quoted context omitted.

I don’t know if it’s the actual reason, but they missed ad revenue expectations according to Yahoo. https://finance.yahoo.com/news/stock-market-today-nasdaq-fal...

Hm there it says Revenue, excluding traffic acquisition costs: $72.32 billion vs. $70.97 billion expected ($63.12 billion in Q4 2022) Adjusted earnings per share: $1.64 vs. $1.59 expected ($1.05 in Q4 2022) Cloud revenue: $9.19 billion vs. $8.95 billion expected ($7.32 billion in Q4 2022) Ad revenue: $65.5 billion vs. $65.8 billion expected ($59.04 billion in Q4 2022) I hope that 0.3 is not the reason for that slip h…

There could be other factors in play like the recent volatility in Netflix within the same sector, as well as the upcoming FOMC meeting tomorrow causing increased fear. Markets aren't always as accurate and efficient as some believe, and stock prices always become more volatile around earnings.

Re: Google Announces Fourth Quarter and Fiscal Year 2023 Results [pdf]

#19

Post by awa »

saiya-jin wrote: post #16
tra3 wrote: post #4

This caught my eye, total employees - 2022: 190,234 - 2023: 182,502 Total increase in revenue of 10 billion. Not sure what conclusion to draw from this, but being a software engineer I found employment count interesting. Though 5% change in head count seems hardly major.

Well, if total average costs per employee for G would be very roughly 1 million, there you have it. I think it may be half of that if at all, but it impacts the increased revenue significantly in any case.

Costs do not impact revenue only profits.

Re: Google Announces Fourth Quarter and Fiscal Year 2023 Results [pdf]

#20

Post by jsnell »

boomfunky wrote: post #18
atorodius wrote: post #9

Earlier quoted context omitted.

Hm there it says Revenue, excluding traffic acquisition costs: $72.32 billion vs. $70.97 billion expected ($63.12 billion in Q4 2022) Adjusted earnings per share: $1.64 vs. $1.59 expected ($1.05 in Q4 2022) Cloud revenue: $9.19 billion vs. $8.95 billion expected ($7.32 billion in Q4 2022) Ad revenue: $65.5 billion vs. $65.8 billion expected ($59.04 billion in Q4 2022) I hope that 0.3 is not the reason for that slip h…

There could be other factors in play like the recent volatility in Netflix within the same sector, as well as the upcoming FOMC meeting tomorrow causing increased fear. Markets aren't always as accurate and efficient as some believe, and stock prices always become more volatile around earnings.

All those other factors would have been priced in at the end of the day. The only new information since then would have been the earnings release. If the absolute numbers are better than expected, then maybe it's the relative numbers (as compared to Microsoft who also released earnings) that are worse than expected?
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