Alphabet (GOOG/GOOGL) reported 1Q20 earnings that indicated better than expected results in January and February before the economic shutdown, offset by a sharp but not quite as bad as expected slowdown in March. The company commented that advertising trends at Search and YouTube have stabilized in April with signs of green shoots. Emerging businesses like […]
Alphabet (GOOG/GOOGL) reported slightly disappointing 4Q19 results compared to elevated expectations that existed thanks to a +10% gain in the shares in January to all-time highs. Looking more closely at the quarter, the headline miss in revenues was heavily concentrated in hardware sales, an area where Northlake has little concern. Overall advertising revenues at search […]
Alphabet’s (GOOG/GOOGL) headline 3Q19 earnings release was mixed but after adjusting for one-time items, the report was a good one albeit lacking the upside relative to consensus estimates the company reported last quarter. Most importantly for Northlake, Alphabet showed strong advertising growth above 20% reinforcing the rebound in 2Q19 after the unexpected deceleration in growth […]
Alphabet (GOOG/GOOGL) reported disappointing 1Q19 earnings driven by across the board weakness in revenue trends relative to expectations. We have noted in past earnings recaps that Alphabet was holding consistently to 20% plus revenue growth despite the company’s massive size and market share. 1Q19 saw revenue growth in the upper teens, well below expectations for […]
Alphabet (GOOG/GOOGL) outperformed 3Q18 earnings estimates despite slightly missing on revenues for the first time since 1Q16. The sales shortfall was largely driven by foreign exchange losses in Brazil and Argentina due to the stronger US dollar. Revenues still grew 21%, or 22% after adjusting for the currency impact. Operating expenses were up 26%, pacing […]
Alphabet (GOOG/GOOGL) reported good second quarter earnings and the stock is reacting well, up 4.6% to start the day. GOOG earnings are often hard to understand given the company’s complex corporate structure and strategy. For 2Q18, the results were relatively straightforward if you ignore the cost of the latest fine paid to the European Union. […]
Alphabet (GOOG/GOOGL) reported mixed results relative to consensus expectations for 1Q18. The results also contained a lot of noise due to accounting requirements. The key takeaways for Northlake are that the company is still growing quite rapidly given its size, while the cost of sustaining the growth is rising. We emphasize the long-term opportunity over […]
Google (GOOG/GOOGL) shares fell after reporting 4Q17 earnings. Revenue growth remained remarkably strong, rising 24% year over year, but Traffic Acquisition Costs (TAC) and other operating expenses rose even faster leading to margin compression and EPS below expectations. The debate for Google investors has long been focused on (1) the sustainability of revenue growth, and […]
Alphabet (GOOG/GOOGL) reported better than expected 3Q17 results. Sales were up 24% compared to 3Q16, accelerating from 21% year-over-year growth last quarter. Earnings per share were almost 15% above expectations, partially boosted by a favorable tax rate. Mobile search advertising, YouTube, and cloud computing each contributed to the strong results. GOOG grew advertising revenue by […]
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