1/ Thread: $GOOG 1Q’21 Update
Hey Google, what’s the best business capitalism has ever come up with?
Google: It’s our search business.
Here are my highlights from the earnings call and quarter.
Hey Google, what’s the best business capitalism has ever come up with?
Google: It’s our search business.
Here are my highlights from the earnings call and quarter.
2/ I was starting to think the days of 25% topline growth were the stories from the yesteryears.
Well, Q1 revenues grew by 34%!
GOOG's *annual* topline in 2013 was $55 Bn. They just did the same in a quarter.
Search, YouTube, Cloud: GOOG is really firing on all cylinders here
Well, Q1 revenues grew by 34%!
GOOG's *annual* topline in 2013 was $55 Bn. They just did the same in a quarter.
Search, YouTube, Cloud: GOOG is really firing on all cylinders here
3/ Operating income more than doubled and margin expanded by a whopping ~1,000 bps.
This was driven by ~800 bps margin expansion in Services, and massive improvement in GCP’s operating losses.
This was driven by ~800 bps margin expansion in Services, and massive improvement in GCP’s operating losses.
4/ What are the drivers for Google search?
I. Number of queries
II. Percentage of queries that have commercial potential
III. Click-through rates
IV. Cost Per Click (CPC)
Difficult to see how any of these drivers will be down in 3/5/10 years from now.
I. Number of queries
II. Percentage of queries that have commercial potential
III. Click-through rates
IV. Cost Per Click (CPC)
Difficult to see how any of these drivers will be down in 3/5/10 years from now.
5/ 77% respondents say they used YouTube to learn a new skill during 2020. Violative view rate* is down 70% (now 16-18 views per 100k views) over the last 4 years.
*It is the % of total views on YouTube videos that eventually get removed because of YouTube’s policy violations.
*It is the % of total views on YouTube videos that eventually get removed because of YouTube’s policy violations.
6/ “With over 2 billion monthly logged in users and over 1 billion hours of video watched every day, YouTube is offering advertisers efficient reach to large audiences”
“more 18- to 49-year-olds are actually watching YouTube than all linear TV combined.”
“more 18- to 49-year-olds are actually watching YouTube than all linear TV combined.”
7/ “DR was practically nonexistent on YouTube a few years ago. And it's now a large and fast-growing business, and we're just getting started, in my view.”
“And I think we're still scratching the surface on what's possible really with commercial intent on YouTube”
“And I think we're still scratching the surface on what's possible really with commercial intent on YouTube”
8/ “for Google Cloud, our approach to building the business has not changed. We remain focused on revenue growth, and we will continue to invest aggressively in products and our go-to-market organization given the opportunity we see.”
9/ Google will continue to invest in office space and will hire 10k people in 2021.
“We are looking at less density per employee. So even with a hybrid work environment, we will continue to need space.”
“We are looking at less density per employee. So even with a hybrid work environment, we will continue to need space.”
10/ Google buyback has increased >10x in just three years. Plenty of dry powder left.
Shareholders will sleep tight tonight.
Shareholders will sleep tight tonight.
https://twitter.com/willis_cap/status/1387167964802256902
End/ I will cover $SHOP and $FB tomorrow.
You will find all my twitter threads here: mbi-deepdives.com/twitter-thread…
You will find all my twitter threads here: mbi-deepdives.com/twitter-thread…
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