Summary

• Alphabet Inc. is a holding company that owns Google and other subsidiaries that operate in various technology fields
• The Alphabet was founded by Lawrence E. Page and Sergey Brin in 2015 to reorganize Google’s interests.
• Google recently Acquired Mandiant.

Alphabet Inc. (Nasdaq: GOOGL, GOOG, LSE: 0RIH) is a holding company that owns Google and other subsidiaries that operate in various technology fields. It was founded by Lawrence E. Page and Sergey Brin in 2015 to reorganize Google’s interests.

Recent Developments

Introducing G2 VMs with NVIDIA L4 GPUs — a cloud-industry first¹

March 22, 2023; introducing G2, the newest addition to the Compute Engine GPU family in Google Cloud. G2 is the industry’s first cloud VM powered by the newly announced NVIDIA L4 Tensor Core GPU, and is purpose-built for large inference AI workloads like generative AI. G2 delivers cutting-edge performance-per-dollar for AI inference workloads that run on GPUs in the cloud. By switching from NVIDIA A10G GPUs to G2 instances with L4 GPUs, organizations can lower their production infrastructure costs up to 40%. The company also found that customers switching from NVIDIA T4 GPUs to L4 GPUs can achieve 2x-4x better performance. As a universal GPU offering, G2 instances also help accelerate other workloads, offering significant performance improvements on HPC, graphics, and video transcoding. Currently in private preview, G2 VMs are both powerful and flexible, and scale easily from one up to eight GPUs.

Google Completes Acquisition of Mandiant²

September 12, 2022; Google LLC today announced the completion of its acquisition of Mandiant, Inc. (NASDAQ: MNDT), a recognized leader in dynamic cyber defense, threat intelligence and incident response services. Mandiant will join Google Cloud and retain the Mandiant brand. With this acquisition, Google Cloud and Mandiant will deliver an end-to-end security operations suite with even greater capabilities to support customers across their cloud and on-premise environments.

Stock Split

On July 15, 2022, the company executed a 20-for-one stock split with a record date of July 1, 2022, effected in the form of a one-time special stock dividend on each share of the company's Class A, Class B, and Class C stock.

Financial Highlights

Revenues were $282.8 billion, an increase of 10% year over year, primarily driven by an increase in Google Services revenues of $16.0 billion, or 7%, and an increase in Google Cloud revenues of $7.1 billion, or 37%. Total constant currency revenues, which exclude the effect of hedging, increased 14% year over year.³

Google Search & other revenues increased $13.5 billion from 2021 to 2022.  YouTube ads revenues increased $398 million from 2021 to 2022. Google Network revenues increased $1.1 billion from 2021 to 2022. Google Cloud revenues increased $7.1 billion from 2021 to 2022.

Cost of revenues was $126.2 billion, an increase of 14% year over year, primarily driven by an increase in other costs of revenues. Cost of revenues increased $15.3 billion from 2021 to 2022. The increase was due to an increase in other cost of revenues and TAC of $11.9 billion and $3.4 billion, respectively.

Operating expenses were $81.8 billion, an increase of 20% year over year, primarily driven by increases in compensation expenses due to headcount growth, third-party service fees, and advertising and promotional expenses.

As of December 31, 2022, the company had $113.8 billion in cash, cash equivalents, and short-term marketable securities.

Company Overview

Alphabet Inc. is an American multinational conglomerate company that was created in 2015 as a restructuring of Google. It is headquartered in Mountain View, California, and is now the parent company of Google and several other subsidiaries.

Alphabet's primary business is online advertising, with Google's advertising platform generating the majority of the company's revenue. Alphabet is consistently ranked among the world's most valuable companies and is known for its innovation in areas such as artificial intelligence, cloud computing, and internet services.

Products

Google is Alphabet's most well-known subsidiary and one of the world's largest technology companies, with products such as the Google search engine, Google Maps, YouTube, and the Android operating system. Other subsidiaries under Alphabet include Waymo (a self-driving car company), Verily (a life sciences research organization), and Calico (a biotech company focused on aging and longevity research).

Google’s popular products are below:⁴

References

1. ^ https://cloud.google.com/blog/products/compute/introducing-g2-vms-with-nvidia-l4-gpus
2. ^ https://abc.xyz/investor/news/releases/2022/0912/
3. ^ https://fintel.io/doc/sec-alphabet-inc-1652044-10k-2023-february-03-19391-1119
4. ^ https://about.google/products/