Alphabet(US:GOOG)2025-04-25 01:05Financial Performance - Revenues increased from $80,539 million in Q1 2024 to $90,234 million in Q1 2025, representing a growth of 8.5%[16] - Net income rose significantly from $23,662 million in Q1 2024 to $34,540 million in Q1 2025, an increase of 45.9%[16] - Comprehensive income increased from $23,225 million in Q1 2024 to $35,254 million in Q1 2025, a growth of 51.7%[19] - Net income for the three months ended March 31, 2024, was $23,662 million, increasing to $34,540 million for the same period in 2025, representing a growth of 46%[25] - Total revenues increased from $80,539 million in Q1 2024 to $90,234 million in Q1 2025, reflecting a year-over-year growth of 12.5%[35] - Google Cloud revenue rose from $9,574 million in Q1 2024 to $12,260 million in Q1 2025, marking a significant increase of 28.1%[35] - Google Services revenue rose to $77.264 billion in Q1 2025, compared to $70.398 billion in Q1 2024, reflecting an increase of about 9.9%[119] - The total operating income for the company increased to $30.606 billion in Q1 2025, compared to $25.472 billion in Q1 2024, which is a growth of around 20.4%[119] Expenses and Investments - Research and development expenses increased from $11,903 million in Q1 2024 to $13,556 million in Q1 2025, reflecting a 13.9% rise as the company invests in AI products and services[16] - Stock-based compensation expense was $5,264 million in Q1 2024 and increased to $5,516 million in Q1 2025[25] - The provision for income taxes for Q1 2025 was $7.249 billion, with an effective tax rate of 17.3%, compared to $4.653 billion and 16.4% in Q1 2024[115] - The allowance for credit losses on accounts receivable increased from $879 million as of December 31, 2024, to $915 million as of March 31, 2025[80] - The company plans to continue investing in new businesses, products, and technologies, including acquisitions and strategic investments[9] Assets and Liabilities - Total assets grew from $450,256 million as of December 31, 2024, to $475,374 million as of March 31, 2025[14] - Cash and cash equivalents slightly decreased from $23,466 million as of December 31, 2024, to $23,264 million as of March 31, 2025[14] - Property and equipment, net, increased from $171.036 billion as of December 31, 2024, to $185.062 billion as of March 31, 2025[81] - Accrued expenses and other current liabilities rose from $51.228 billion as of December 31, 2024, to $58.300 billion as of March 31, 2025[82] - Total long-term debt as of March 31, 2025, was $10.886 billion, with an estimated fair value of approximately $9.1 billion[78] Regulatory and Legal Matters - The company is facing heightened regulatory scrutiny, which could impact business practices and financial results[12] - In June 2017, the European Commission imposed a €2.4 billion fine on Google for antitrust violations related to shopping search results[95] - In July 2018, the European Commission imposed a €4.3 billion fine on Google for antitrust violations related to Android distribution agreements, later reduced to €4.1 billion[95] - In March 2019, the European Commission imposed a €1.5 billion fine on Google for antitrust violations related to AdSense for Search, which was annulled in September 2024[96] - Ongoing privacy investigations and lawsuits in the U.S. and EU could result in significant fines and product changes for Google[100] Shareholder Returns - In the three months ended March 31, 2025, Alphabet repurchased $15.3 billion of Class A and Class C shares[107] - As of March 31, 2025, $29.5 billion remained available for share repurchases after the Board authorized an additional $70.0 billion in April 2025[108] - Total cash dividends for the three months ended March 31, 2025, were $1.2 billion for Class A, $171 million for Class B, and $1.1 billion for Class C shares[109] - The Board declared a quarterly cash dividend of $0.21 in April 2025, representing a 5% increase from the previous dividend of $0.20[109] Future Outlook - The company expects continued growth in revenues beyond advertising, which may positively impact margins[9] - The company anticipates fluctuations in traffic acquisition costs (TAC) and associated rates, which could affect overall margins[9] - Revenue backlog as of March 31, 2025, was $92.4 billion, with an expectation to recognize approximately 55% of this backlog as revenue over the next 24 months[36] - The company entered into a definitive agreement to acquire Wiz for $32.0 billion in an all-cash transaction, expected to close in 2026[86]