Alphabet’s Financial Results in 5 Slides

Market Cap Comparison

Alphabet’s market cap surpassed Apple’s on Feb 1. It grew 53% YOY while
Apple’s declined 22%.
Market Cap
$800B

600 Alphabet
Apple
400

200
Feb-13 May-13 Aug-13 Nov-13 Jan-14 May-14 Aug-14 Oct-14 Feb-15 May-15 Jul-15 Oct-15 Feb-16

+53% -22%
$800B
683

600 560 534

Apple
400 366

Alphabet
200
1/30/2015 2/1/2016

Source Company information

Alphabet vs. Apple Quarterly Performance
Both companies exceeded EPS expectations but revenue for Apple was slightly
below consensus.
Revenue Earnings per Share

$100B $10.00
$8.67

80 $75.9 8.00

60 6.00

40 4.00
$3.28

$21.3
20 2.00

0 0.00
Alphabet Apple Alphabet Apple

Actual Consensus Actual Consensus

% Beat/Miss 2.4% -0.9% % Beat/Miss 6.1% 1.5%
Source: Company information
Alphabet Segment Revenue Trend
The base business accounts for nearly all of the revenue and is growing at 16%
per year.
Revenue
CAGR
75.0 2013-2015
$75B 0.4 (1%) Other 511%
Bets

70

66.0
0.3 (0%)
65

74.5 (99%) Google 16%

60
65.7 (100%)

55.5
0.0 (0%)

55.5 (100%)
0
2013 2014 2015

Source Company information

Google Segment Breakdown
Advertising on Google websites drives 70%+ of the revenue for the base
business.
Google Segment Revenue

$18.0B $21.2B % Change

100%
Other Other
24%
9% 10%

Ads Network Websites Ads Network Websites

80 7%
22% 20%

60

40
Ads Google Websites Ads Google Websites
20%
69% 71%

20

0
Q4 2014 Q4 2015

Source Company information

 Alphabet Segment Income
Profits for the base business grew 23% while Other Bets lost nearly $4B.

Operating Income
Change
2014-2015
$30B

$23.4B

20 $19.0B

Google 23%
10

0
Other Bets -84%
-$1.9B
-$3.6B

-10
2014 2015

Source Company information