Table of Contents
a. Key Points
Strong growth across Cloud and Search.
Raised annual CapEx guidance.
Will sell its custom AI chips to customers outside of Google Cloud.
b. Demand
Beat revenue estimate by 2.6%.
Constant currency (CC) revenue growth was 19% Y/Y.
Beat Beyond revenue estimate by 8.8%.
Missed YouTube revenue estimate by 1%.
Beat search revenue estimate by 2.2%.
c. Profits
Beat EBIT estimate by 9.7%.
EBIT rose by 30% Y/Y compared to 20% growth last year.
R&D rose by 25% Y/Y compared to 14% growth last year.
Traffic acquisition costs (TAC) rose by 11% Y/Y compared to 3% growth last year.
Missed FCF estimate by 13%.
CapEx was $35.7B for the quarter vs. $17.2B Y/Y.
Beat $2.67 EPS estimate by $0.09 ex-equity gains.
d. Balance Sheet
$126.8B in cash, equivalents.
$107B in non-marketable securities.
$46.5B in debt.
Added $31.1B in senior unsecured notes during the first quarter.
Diluted share count fell by 0.4%.
Dividends rose by 5% Y/Y.
e. Guidance & Valuation
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