Alphabet’s financial report from the fourth quarter and the whole year of 2021 – unprecedented sales of Pixel phones

Alphabet’s financial report from the fourth quarter and the whole year of 2021 – unprecedented sales of Pixel phones

Alphabet’s financial report from the fourth quarter and the whole year of 2021 – unprecedented sales of Pixel phones

News unit : Company Alphabet – which Google is its subsidiary – on Tuesday, February 1, 2022 (12 Bahman 1400), it will report its financial report for the last quarter of 2021 (ended on December 31) as well as the entire year. Fiscal 2021 . Alphabet’s revenue in the latest quarter, with a growth of 32% compared to the same period last year, amounted to 75.33 billion dollars, which exceeded the analysts’ estimate of 72.17 billion dollars. Alphabet’s operating profit in the fourth quarter (with a 29% margin) reached $21.88 billion, of which $20.64 billion was net profit. Earnings per share (EPS) was also reported at $30.69 in the latest quarter, and thanks to these brilliant results, Alphabet’s stock value has grown by more than 9%.

According to Sundar Pichai,

As always, Google ads have been Alphabet’s most profitable business. According to a recent report, Google earned $61.24 billion in advertising revenue in the fourth quarter, which is a 33% increase compared to the last quarter of 2020 (i.e. $46.2 billion). According to Philipp Schindler, Google’s chief business officer, the most important driver of annual revenue growth in the advertising sector is related to retail sales. Of course, the owners of other businesses – including the media and financial sectors – have also spent considerable money on advertising in the recent season.

Admittedly, YouTube’s revenue was from advertising. Google is looking to challenge its strong competitor, Tik Tok, with the Shorts service. Sundar Pichai announced that the number of daily active users of this company around the world is more than 15 billion, although this number has not changed since Pichai’s last update (in July 2021).

But we come to the part that Google It is called Google other. Google’s business in this sector includes things like hardware products, Play Store service and YouTube’s non-advertising revenue. According to a recent report, the revenue of Google other in the last quarter of 2021 reached 8.16 billion dollars, which indicates a 22% growth compared to the revenue of the same period last year ($6.67 billion).

Without a doubt, the Pixel smartphone series is one of the most important Google hardware products. According to Sundar Pichai, despite supply chain constraints, Pixel phones achieved record sales last season. In the meantime, we should pay attention to the bold role of smartphones Pixel 6 and Pixel 6 Pro noted in this success. It is true that the previous models of the Pixel also often used powerful cameras, but Google decided to raise the level of the optics department in the Pixel 6 series by several steps.



Alphabet's financial report from the fourth quarter and the whole year of 2021 - unprecedented sales of Pixel phones

Other risks or Other Bets, another income row in Alphabet’s financial reports include companies such as Waymo (in self-driving cars) and Verily (in health-related technologies). The revenue of Other Bets is reported to be around 181 million dollars, which is a slight decrease compared to the revenue of 196 million dollars in the same period last year. Needless to say, as always, this time we saw a loss in this sector and the subsidiary companies imposed a loss of 1.45 billion dollars on Alphabet in the past quarter.

Among the costs that Alphabet always has to pay is called TAC or “traffic acquisition costs”; Like the fee that Google pays to smart device manufacturers to be selected as the default search engine. It should be noted that these expenses in the last quarter with an increase of 28% (and more than the estimate of Wall Street) amounted to 13.43 billion dollars.

One of the important decisions of Alphabet – which will be implemented soon – the division of shares of this company has been announced. According to a recent report, Alphabet, following Apple and Tesla, has decided to split its shares and plans to split each 1 share into 20 shares, or in other words, split. The move doesn’t change the fundamentals of Alphabet’s business, but lowering the price per share will benefit Alphabet financially. With the implementation of this decision, the price of each share will be reduced to one-twentieth of the previous amount, and each shareholder will own 19 more shares at the same price. To put things into perspective, imagine you own $3,000 worth of Alphabet stock. After the stock split strategy is executed, you will have 20 shares worth $150. In this way, the total value of your shares will be practically unchanged and will be the same 3,000 dollars, but the lower price of the shares will encourage more people to buy them.

At the end, we have a look at the statistics related to Alphabet’s overall performance. 2021. Last year, Alphabet’s revenue grew by a staggering 41% to $257.64 billion, of which $78.71 billion was operating profit and $76.03 billion in net profit in 2021. Alphabet’s total workforce has increased from 135,301 in 2020 to 156,500 at the end of 2021. According to Ruth Porat, chief financial officer of Alphabet and Google, the increase in headcount with the same The growth rate is also predicted for future seasons.

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