
Alphabet Announces First Quarter 2020 Results [pdf] - mrep
https://abc.xyz/investor/static/pdf/2020Q1_alphabet_earnings_release.pdf?cache=4690b9f
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nicolashahn
Numbers seem pretty good, considering. But the COVID-19 impact wouldn't kick
in until about mid-March, so only about 1/6 of the quarter would possibly have
been affected. I'm much more interested to see how Q2 is going to look.

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xster
Ruth did mention that the APAC impact has been more "muted" and they were
earlier in the timeline than Europe and Americas.

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bretpiatt
Google doesn't do business in China so the Q1 China lockdown is not an event
for them and the spread in the rest of APAC was pretty well contained (thus
far).

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disgruntledphd2
They 100% get a bunch of money from Chinese advertisers though, and one might
have expected this to impact their results.

Doesn't look like any such effects are visible from these numbers, at least.

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jiqiren
Can someone explain how YouTube creators are saying their cut of revenue has
been reduced by ~50% but YouTube is reporting record jump in revenue (up 33%
Q1)? YouTube is just squeezing them for more profit?

Source: [https://reclaimthenet.org/youtube-ad-revenue-
coronavirus/](https://reclaimthenet.org/youtube-ad-revenue-coronavirus/)

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nostrademons
Possibly reporting bias. Top YouTubers who have seen a large drop in revenue
make for good news stories in bad economic times. Top YouTubers who have seen
gains in revenue have every incentive to keep quiet about it.

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me_me_me
That is apparently the path youtube is preferring. Multiple superstar creators
rather than large diverse set of smaller channels.

They steer and try to lock their userbase with those few high performers. That
would explain this.

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xiaolingxiao
In short: revenue increased by 5B USD, cost of revenue increased by 2.9B USD.
R&D increased by 800M USD, while sales and market increased by 600M USD. EPS
increased by 38 cents.

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ac29
And advertising fell from 82% of total revenue to 80%, continuing a downward
trend as Google finds success in new market segments. Google Cloud grew from
5.0% to 6.7% of total revenue.

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klohto
13% rise in Revenue. Cloud is up from last year $1,825M to $2,777M

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qmarchi
The Earnings call is also available at:
[https://www.youtube.com/watch?v=YkrYz_vD_0E](https://www.youtube.com/watch?v=YkrYz_vD_0E)

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Steve886
[INFOGRAPHIC] Key numbers from Alphabet financial results
[https://news.alphastreet.com/alphabet-q1-earnings-key-
number...](https://news.alphastreet.com/alphabet-q1-earnings-key-numbers-that-
you-need-to-note-down-from-googl/)

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jackiem
US revenue was down 13% QoQ

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kumarm
Q4 to Q1 revenue always drops due to seasonality in advertising.

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azurezyq
Yeah. Q4 is usually crazy because of Thanksgiving and Christmas.

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jpm_sd
Other Bets operating loss, in millions

2019 Q1 - ($868)

2020 Q1 - ($1,121)

This has to change, right? How can that number keep going up?

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KKKKkkkk1
Are Alphabet execs more qualified to invest in self-driving cars or in biotech
than Alphabet's shareholders? Those are billions of shareholders' money that
they'll never see again.

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mrep
Don't invest in them if you don't like it then. I for one see self driving
tech as a trillion dollar market between trucking and commuters and I also
think they they are uniquely positioned in capitalizing on that market first
as they have some of the best software, some of the best large scale
datacenter computing tech, and over a hundred billions dollars in cash to
invest in this tech all of which I think gives them significant advantages in
investing in this long term bet over any other company.

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eanzenberg
Very nice growth, even for a heavily ad-based company. But hey everyone we’re
supposed to be in a depression! lol

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ojbyrne
"Performance was strong during the first two months of the quarter, but then
in March we experienced a significant slowdown in ad revenues. We are
sharpening our focus on executing more efficiently, while continuing to invest
in our long-term opportunities."

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tenpies
There is a parallel between many of these "tech" companies and the oil
producers: both are producing a surplus when there is really not much demand
for what they are producing.

Google/Facebook can have all the MAU and views in the world, but if there is
no one interested in buying ad space, then all that attention is effectively
worthless. In recessions, one of the first things to go is ad spend.

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mav3rick
Same goes for iPhones, Airpods

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scarface74
Apple introduced the iPhone in 2007 and saw growth unabated during the
recession.

People aren’t going to do without phones and at least in the US where all of
the major carriers offer 0% interest payment plans. Over the course of two
years, the monthly price of an iPhone isn’t that much more than a cheap
Android phone. All most people care about is the monthly cost.

Also, Apple unlike any other phone manufacturer has a direct relationship with
the customer and has its own payment plans.

Finally, while Apple’s revenue had start back growing pre-Covid, services has
been growing like crazy. Even if people keep their iPhones longer, Apple is
still making money off of them - unlike any other phone carrier. Apple is much
better diversified than Google.

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mav3rick
Market saturation and supply chain constraints weren't the same. No one is
going to drop a 1000 USD on a phone right now with many businesses outright
closed

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scarface74
If only Apple had the foresight to release a new $399 phone so people wouldn’t
have to spend $1000....

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mav3rick
Yes people go to Apple for the mid range phone. The entire brand is based on
perceived or actual premium. The SE doesn't get you that. Your snark isn't
going to change their numbers either.

Also btw the argument applied to spending on luxuries. No one is going to
upgrade on phones in this atmosphere.

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scarface74
The original SE was more in demand than Apple expected.

[https://www.fool.com/investing/general/2016/04/27/apple-
inc-...](https://www.fool.com/investing/general/2016/04/27/apple-inc-facing-
iphone-se-shortage.aspx)

Do you think people who prefer an iPhone are going to buy an Android phone or
buy a cheaper iPhone?

Also, Apple sells the iPhone XR and iPhone 11 for less than $1000.

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three_seagrass
Which is a worthless statement since Apple neither released original
projections or existing sales. A signal like running out of inventory would
confirm this but that is not the case.

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scarface74
So you think Apple just decided to release a new iPhone SE even if it didn’t
know the market?

Why would Apple - led by the supply chain master himself - admit during
earnings that they miscalculated demand leading to lower sales if they were
merely trying to spin a positive narrative? Why would it be a positive
narrative that people wanted to spend less money and not more?

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three_seagrass
That's a straw man and a bunch of loaded questions. I think you're trying to
make the statement into proof of something that it is not.

