Alphabet (GOOGL) Earnings Insights, Analysis, and Takeaways

Alphabet (aka Google) reported corporate earnings after the market close on Tuesday. The report was solid, sending shares of $GOOGL higher.

Google is seeing various parts of its business inflect higher with Cloud and YouTube as clear standouts.

We have been waiting for Cloud to show this strength for several quarters now. Our checks suggest that this is just the beginning.

Longer-term, Google is also well-positioned within the future of mobility with Waze, Google Maps, and Waymo.

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Here’s a recap of Alphabet’s (Google’s) Corporate Earnings report (ticker $GOOGL):

Growth Areas:

– $55B in sales, +34% Y/Y (strongest revenue growth since Q4 2012)

– Google Cloud growing rapidly

– YouTube still under-monetized with significant runway. YouTube + Cloud is a $40B annual run-rate business. This is the size of 2x of Visa.


– 29.7% operating margins. (strong)

– 3 straight quarters of accelerating operating margins.

– $73B in trailing 12-month operating cash flow is $7B over any quarter ever.

Longer-term, Google is well-positioned within many of our structural growth innovation blocks. This includes the future of mobility, the future of computing, digital work, and interactive entertainment. Nice quarter, all together.

Twitter:  @_SeanDavid

The author or his firm have positions in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.