Thread by @PupilPen

1/ With a market cap of $1.18 trillion, #Alphabet (#Google) is world’s fourth most valuable public company.
It delivered a revenue of ~$283 billion in FY22 (Dec YE) and is a top 20 company globally in terms of revenue. (~number 17th)
Here is a thread exploring #Alphabet.

2/ Incorporated in 1998, the company went public in 2004.

3/ Here is a market cap history chart. Alphabet’s market cap is ~$1.18 trillion (fourth largest in the world).
For context, largest is #Apple ($2.3 trillion), followed by #Microsoft ($1.8 trillion), #SaudiAramco ($1.8 trillion)

4/ The company’s revenue was $55 billion in 2013, $111 billion in 2017. It closed 2022 at $283 billion. Here is a look at historical revenue growth for Google.

5/ How does Google make money? Its main source of revenue is Google Services ($253 bn) which delivers both performance and brand advertising. The other key source is Google Cloud ($26 bn) which offers Cloud infrastructure to clients.
Here is Alphabet’s revenue across segments.

6/ Now to better understand the market it operates in, here is a chart showing global ad spend by category. To note that Digital Ads was a $100 billion market in 2013. By 2022, it had grown to $557 billion! tinyurl.com/4szxeda6

7/ This growth is mind-boggling, especially since this share is all a new addition (traditional channels continue at the same clip, perhaps shrinking a little).

This translates to the changing shape & mix of Marketing expenses across all the businesses of the world -new and old

8/ Google is the largest player in this space with $254 bn Ad revenue (2022). Facebook revenue is $116 bn, almost all of it from advertising. We saw Amazon Advertising revenue were at $38 bn in 2022.

These are the top players in this market which has grown five fold in nine yrs

9/ The market that Google Cloud ($26 billion business) competes in is also young and growing fast. It competes with AWS ($80 billion business). Here is the total market for Cloud as estimated by Google. ($505 billion in 2022)

10/ From another source, and showing a smaller market estimate, here is a graph showing market share of the top few players providing #Cloud Infrastructure. #AWS leads the market with 32% share. Google is close to 10% .

11/ Here is a table sharing the distribution of revenue across the world. 48% of its revenue is derived from US.

12/ As to how the key businesses perform, here is Operating Margin. Google Services (advertising) reports a 34% Operating Margin (~39% in 2021). Google Cloud and Other Bets are in a different phase and have been reporting Operating Losses which brings down the overall margin.

13/ Here is the Income Statement of the company.
Cost of Revenue includes Traffic Acquisition Cost (#TAC) paid to distribution partners (browser providers, mobile carriers etc).
The company spends heavily on R&D – has invested over $100 billion in last five years

14/ Here is the Balance Sheet and Cash Flow. Like #Apple, the company is cash positive and has been repurchasing stock steadily over the years. ($59 billion repurchase in 2022)

15/ Most of the above information is from Alphabet 10-K.
sec.gov/Archives/edgar…