Alphabet Inc (GOOGL) q4 2023 Earnings Report

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Alphabet Inc

GOOGL

$315.05 -1.94%

Exchange: NASDAQ | Sector: Technology | Industry: Internet Content Information

Q4 2023

Published: Jan 31, 2024

Earnings Highlights

Revenue of $86.31B up 13.5% year-over-year
EPS of $1.64 increased by 56.6% from previous year
Gross margin of 56.5%
Net income of 20.69B
"Our investments in AI are helping Search; subscriptions, which reached $15 billion in annual revenue, grew strongly, powered by YouTube Premium and Music, YouTube TV and Google One." - Sundar Pichai

GOOGL

Alphabet Inc

Period Q4 2023

Currency USD

Report Type Quarterly Earnings

Generated Dec 8, 2025

Executive Summary

Alphabet Inc reported robust financial results in Q4 2023, with total consolidated revenues reaching $86.3 billion, up 13% year-over-year (YoY). Notable drivers included a 12% increase in Google Services revenue, fueled by a 13% rise in Search and other advertising segments. AI advancements have been significant, particularly with the introduction of the Gemini model, which is enhancing search capabilities. Additionally, subscription services exceeded expectations, with revenue growth to $15 billion annually, highlighting the success of YouTube Premium and Google One. The management remains optimistic about sustained growth into 2024, particularly with strategic investments in AI and Cloud services.

Key Performance Indicators

Revenue

Increasing

86.31B

QoQ: 12.54% | YoY: 13.49%

Gross Profit

Increasing

48.74B

56.50% margin

QoQ: 12.13% | YoY: 19.72%

Operating Income

Increasing

23.70B

QoQ: 11.03% | YoY: 30.49%

Net Income

Increasing

20.69B

QoQ: 5.07% | YoY: 51.84%

EPS

Increasing

1.66

QoQ: 5.73% | YoY: 56.60%

Revenue Trend

Margin Analysis

Financial Highlights

Financial Metrics Overview
- Revenue: $86.3 billion (up 13% YoY)
- Net Income: $20.7 billion (up 51.84% YoY)
- EPS: $1.64 (up 56.60% YoY)
- Operating Income: $23.7 billion (up 30% YoY)
- Free Cash Flow: $7.9 billion
- Gross Profit Margin: 56.5%
- Operating Margin: 27%
- Current Ratio: 2.10
The revenues increased significantly due to strong advertising performance, particularly in retail, which reflects Alphabet's solid market position amidst heightened competition. YoY comparisons reveal an increase in both gross profit and operating income, indicating effective cost management despite increased R&D spend. Management outlined that the higher income was also supported by tax benefits from deferrals made in previous quarters.

Income Statement

Metric	Value	YoY Change	QoQ Change
Revenue	86.31B	13.49%	12.54%
Gross Profit	48.74B	19.72%	12.13%
Operating Income	23.70B	30.49%	11.03%
Net Income	20.69B	51.84%	5.07%
EPS	1.66	56.60%	5.73%

Key Financial Ratios

Gross Profit Margin

Good

56.50%

Gross profit margin is healthy and competitive within industry standards

Operating Profit Margin

Excellent

27.50%

Operating margin is exceptional, indicating strong pricing power and operational efficiency

Net Profit Margin

Excellent

24.00%

Net profit margin is exceptional, indicating strong pricing power and operational efficiency

Return on Assets

Fair

5.14%

Return on assets is acceptable but below top-tier companies

Return on Equity

Fair

7.30%

Return on equity is acceptable but below top-tier companies

Current Ratio

Healthy

2.10

Current ratio shows adequate liquidity to meet short-term obligations

Debt to Equity

Conservative

0.10

Debt-to-equity shows conservative leverage and low financial risk

P/E Ratio

Fair Value

21.08x

P/E ratio in line with market averages

Price to Book

High Premium

6.16x

Very high premium suggests asset-light business model or lofty expectations

Historical Earnings Comparison

Period	Revenue ($M)	EPS ($)	YoY Growth	Report
Q4 2024	96,469.00	2.15	+11.8%	View
Q3 2024	88,268.00	2.12	+15.1%	View
Q2 2024	84,640.00	1.89	+13.5%	View
Q1 2024	80,467.00	1.89	+15.3%	View
Q4 2023	86,310.00	1.64	+13.5%	View

Alphabet Inc (GOOGL) Q4 2023 Earnings Report

Earnings Highlights

Executive Summary

Key Performance Indicators

Revenue Trend

Margin Analysis

Financial Highlights

Income Statement

Key Financial Ratios

Management Insights Available for Members

Peer Comparison Available for Members

Investment Outlook & SWOT Available for Members

Historical Earnings Comparison

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