$Alphabet(GOOG)$ $ROUNDHILL DAILY 2X LONG MAGNIFICENT SEVEN ETF(MAGX)$ $GOOGL reported its Q1 earnings, which exceeded investor expectations!
$GOOG $GOOGL Alphabet Inc: Q1 2025 Earnings Summary
๐ Key Metrics
๐ฐ Revenue: $90.2 billion, increased 12% year over year (14% in constant currency)
๐ Earnings per Share (EPS): $2.81, increased 49% year over year
๐ธ Operating Income: $30.6 billion, increased 20% year over year
๐ Operating Margin: 34%, expanded by 2 percentage points
๐ต Net Income: $34.5 billion, increased 46% year over year
๐ฐ Free Cash Flow: $19.0 billion for Q1 2025; $74.9 billion for trailing twelve months
๐ฑ Paid Subscriptions: Surpassed 270 million across YouTube and Google One
๐ฎ Financial Outlook
๐ฃ Announced 5% increase to quarterly dividend, resulting in $0.21 per share
๐ต Board authorized additional $70 billion stock repurchase program
๐ No specific revenue or profit guidance for next quarter was provided in the report
๐ Positive Highlights
๐ Google Search & other revenue grew to $50.7 billion, up from $46.2 billion year over year
โ๏ธ Google Cloud revenue increased 28% to $12.3 billion, with significant demand for AI solutions
๐บ YouTube ads revenue rose to $8.9 billion from $8.1 billion year over year
๐ง Rolled out Gemini 2.5, described as their "most intelligent AI model"
๐ค AI Overviews in Search reached 1.5 billion monthly users
๐ Challenges & Concerns
๐ "Other Bets" revenue declined to $450 million from $495 million year over year
๐ธ "Other Bets" operating loss increased to $1.23 billion from $1.02 billion year over year
๐ข Continued high capital expenditures with $17.2 billion in purchases of property and equipment
๐ Strategic Updates
๐ง Full stack approach to AI driving growth across business segments
๐ค Gemini 2.5 AI model launched, described as achieving "breakthroughs in performance"
๐ฐ $8.0 billion unrealized gain on non-marketable equity securities related to investment in a private company
๐ฅ Employee count increased to 185,719 from 180,895 year over year
๐ฌ CEO Quote
๐ฃ๏ธ Sundar Pichai: "We're pleased with our strong Q1 results, which reflect healthy growth and momentum across the business. Underpinning this growth is our unique full stack approach to AI."
๐ Upcoming Events
๐ Quarterly cash dividend of $0.21 payable on June 16, 2025 to stockholders of record as of June 9, 2025
๐๏ธ Live audio webcast of Q1 2025 earnings release call available on YouTube at youtube.com/watch?v=SySgINโฆ
๐ Analyst Summary
๐ Alphabet delivered exceptionally strong Q1 2025 results, showing robust growth across all major segments while expanding profitability
๐ค AI investments are bearing fruit with AI Overviews reaching 1.5B monthly users and Gemini 2.5 launch driving engagement
โ๏ธ Google Cloud stands out with 28% growth and significantly improved profitability, contributing $2.2B in operating income
๐ฐ The substantial increase in EPS and net income was partially boosted by $8B unrealized gain on private investment
๐ With continued strong free cash flow generation and shareholder returns through increased dividends and share repurchases, Alphabet demonstrates both growth momentum and financial discipline.
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