Alphabet Inc. (GOOGL) SEC Filing 10-K Annual report for the fiscal year ending Monday, December 31, 2018

Exhibit 99.1

Alphabet Announces Fourth Quarter and Fiscal Year 2018 Results

MOUNTAIN VIEW, Calif. – February 4, 2019 – Alphabet Inc. (NASDAQ: GOOG, GOOGL) today announced financial results for the quarter and fiscal year ended December 31, 2018.

"In 2018 we delivered strong revenue growth, up 23% year over year to $136.8 billion, and up 22% for the fourth quarter to $39.3 billion," said Ruth Porat, Chief Financial Officer of Alphabet and Google. "With great opportunities ahead, we continue to make focused investments in the talent and infrastructure needed to bring exceptional products and experiences to our users, advertisers and partners around the globe."

Q4 2018 financial highlights

The following summarizes our consolidated financial results for the quarters ended December 31, 2017 and 2018 (in millions, except for per share information, percentages, and number of employees; unaudited):



	Three Months Ended December 31, 2017⁽¹⁾			Three Months Ended December 31, 2018
Revenues		$32,323			$39,276
Increase in revenues year over year	24		%	22		%
Increase in constant currency revenues year over year	24		%	23		%

Operating income		$7,664			$8,203
Operating margin	24		%	21		%

Other income (expense), net		$354			$1,869

Net income (loss)		($3,020	)		$8,948
Diluted EPS		($4.35	)		$12.77
Diluted shares (in thousands)	694,604			700,899

Effective tax rate	138		%	11		%
Number of employees	80,110			98,771


⁽¹⁾	The Tax Act was enacted on December 22, 2017 and resulted in additional tax expense of $9.9 billion in the fourth quarter of 2017 primarily due to the one-time transition tax on accumulated foreign subsidiary earnings and deferred tax effects.

Q4 2018 supplemental information (in millions, except for EPS and percentages; unaudited)

Segment revenues and operating results



	Three Months Ended December 31, 2017			Three Months Ended December 31, 2018
Google properties revenues		$22,237			$27,022
Google Network Members' properties revenues	4,990			5,613
Google advertising revenues	27,227			32,635
Google other revenues	4,965			6,487
Google segment revenues		$32,192			$39,122
Other Bets revenues		$131			$154

Google operating income		$8,595			$9,700
Other Bets operating loss		($748	)		($1,328	)

The following information was filed by Alphabet Inc. (GOOGL) on Monday, February 4, 2019 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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Alphabet Inc.

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Inside Alphabet Inc.'s 10-K Annual Report:

Financial - Earnings Highlight
Our future effective tax rate could be adversely affected by earnings being lower than anticipated in countries that have lower statutory rates and higher than anticipated in countries that have higher statutory rates, changes in the valuation of our deferred tax assets or liabilities, or changes in tax laws, regulations, or accounting principles, as well as certain discrete items.

Revenue - Product Highlight
Our advertising revenue growth, as well as the change in paid clicks and cost-per-click on Google properties and the change in impressions and cost-per-impression on Google Network Members' properties and the correlation between these items, have fluctuated and may continue to fluctuate because of various factors, including: advertiser competition for keywords; changes in advertising quality or formats; changes in device mix; changes in foreign currency exchange rates; fees advertisers are willing to pay based on how they manage their advertising costs; general economic conditions; growth rates of revenues within Google properties; seasonality; and traffic growth in emerging markets compared to more mature markets and across various advertising verticals and channels.
Revenue - Product Highlight
Net cash used in investing activities increased slightly from 2016 to 2017 primarily due to an increase in purchases of marketable securities and an increase in purchases of property and equipment, partially offset by an increase in the maturities and sales of marketable securities, a decrease in cash collateral paid related to securities lending, and an increase in proceeds received from collections of notes receivables.
Other - Other Highlight
Net cash used in financing activities increased from 2017 to 2018 primarily due to higher cash payments for repurchases of capital stock and stock-based award activities.
Financial - Expense Highlight
In addition, there was an increase in compensation expenses (including SBC) and facilities-related costs of $853 million, largely resulting from a 6% increase in headcount.
Revenue - Product
These seasonal trends have caused,...Read more
Legal - Other
We evaluate, on a regular...Read more
Financial - Expense
The increase was primarily due...Read more
Financial - Expense
The increase was primarily due...Read more
Financial - Expense
The increase was primarily due...Read more
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The cost of revenues related...Read more
Revenue - Product
A number of our Other...Read more
Revenue - Product
These increases were primarily driven...Read more
Financial - Expense
In addition, there was an...Read more
Financial - Expense
The increase was primarily due...Read more
Revenue - Product
The increase was primarily driven...Read more
Revenue - Product
The increase was primarily driven...Read more
Financial - Expense
In addition, there was an...Read more
Revenue - Product
Additionally, revenue growth from 2017...Read more
Financial - Debt
Cash equivalents and marketable securities...Read more
Revenue - Product
The increase in the aggregate...Read more
Other - Other
The number of paid clicks...Read more
Revenue - Product
The continuing shift from an...Read more
Financial - Income
As of December 31, 2018,...Read more
Revenue - Product
The increase in the aggregate...Read more
Financial - Expense
The increase was due to...Read more
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In addition, there was an...Read more
Revenue - Product
The following table presents our...Read more
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General and administrative expenses decreased...Read more
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The increase was primarily due...Read more
Financial - Shares
When indicators of impairment exist,...Read more
Financial - Expense
Represents non-cancelable contractual obligations primarily...Read more
Financial - Expense
In addition, uses of cash...Read more
Financial - Expense
R&D; expenses increased $4,794 million...Read more
Financial - Expense
R&D; expenses increased $2,677 million...Read more
Financial - Expense
General and administrative expenses increased...Read more
Revenue - Product
Net cash provided by operating...Read more
Revenue - Product
Our APAC revenues and revenue...Read more
Financial - Expense
The following table presents our...Read more
Other - Other
Net cash used in investing...Read more
Financial - Cash Flow
An impairment loss would be...Read more
Financial - Earnings
The margins on these non-advertising...Read more
Revenue - Product
Our Google properties revenues increased...Read more
Revenue - Product
Our Google Network Members' properties...Read more
Revenue - Product
Our Google Network Members' properties...Read more
Revenue - Product
Our Google other revenues increased...Read more
Revenue - Product
Our Google other revenues increased...Read more
Revenue - Product
Our Other Bets revenues increased...Read more
Other - Other
Although we believe we have...Read more
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Effective in 2018, the Tax...Read more
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As users in developing economies...Read more
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Our provision for income taxes...Read more
Other - Other
In some cases, we could...Read more
M & A - Other
We believe that our sources...Read more
Other - Other
We also experienced growth in...Read more
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Our Other Americas revenues and...Read more
Revenue - Product
Google segment revenues of $136.2...Read more
Revenue - Geography
The growth from 2016 to...Read more
Financial - Expense
The decrease was primarily from...Read more
Revenue - Product
Our international revenues are favorably...Read more
Other - Other
Effective tax rate was 12%....Read more
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Our EMEA revenues and revenue...Read more
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Users are increasingly using diverse...Read more
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The increase in TAC to...Read more
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As our impression-based revenues have...Read more
Other - Other
Our employees are among our...Read more
Financial - Income
We expect other income (expense),...Read more
Revenue - Geography
Additionally, the growth was favorably...Read more
Revenue - Product
Our international revenues are also...Read more

Financial Statements, Disclosures and Schedules

Inside this 10-K Annual Report

Document And Entity Information
Consolidated Balance Sheets
Consolidated Balance Sheets (Parenthetical)
Consolidated Statements Of Income
Consolidated Statements Of Comprehensive Income
Consolidated Statements Of Comprehensive Income (Parenthetical)
Consolidated Statements Of Stockholders' Equity
Consolidated Statements Of Cash Flows
Nature Of Operations And Summary Of Significant Accounting Policies
Revenues
Financial Instruments
Variable Interest Entities (Vies)
Debt
Supplemental Financial Statement Information
Acquisitions
Goodwill And Other Intangible Assets
Commitments And Contingencies
Stockholders' Equity
Net Income Per Share
Compensation Plans
Income Taxes
Information About Segments And Geographic Areas
Schedule Ii: Valuation And Qualifying Accounts
Nature Of Operations And Summary Of Significant Accounting Policies (Policies)
Revenues (Tables)
Financial Instruments (Tables)
Debt (Tables)
Supplemental Financial Statement Information (Tables)
Goodwill And Other Intangible Assets (Tables)
Commitments And Contingencies (Tables)
Net Income Per Share (Tables)
Compensation Plans (Tables)
Income Taxes (Tables)
Information About Segments And Geographic Areas (Tables)
Nature Of Operations And Summary Of Significant Accounting Policies (Narrative) (Details)
Revenues (Revenue By Segment) (Details)
Revenues (Revenue By Geographic Location) (Details)
Revenues (Narrative) (Details)
Financial Instruments (Debt Securities) (Details)
Financial Instruments (Narrative) (Details)
Financial Instruments (Contractual Maturity Date Of Marketable Debt Securities) (Details)
Financial Instruments (Gross Unrealized Losses And Fair Values For Investments In Unrealized Loss Position) (Details)
Financial Instruments (Non-Marketable Debt Securities) (Details)
Financial Instruments (Marketable Equity Securities) (Details)
Financial Instruments (Measurement Alternative Investments) (Details)
Financial Instruments (Fair Values Of Outstanding Derivative Instruments) (Details)
Financial Instruments (Effect Of Derivative Instruments On Income And Accumulated Other Comprehensive Income) (Details)
Financial Instruments (Offsetting Of Financial Assets And Financial Liabilities) (Details)
Variable Interest Entities (Vies) (Narrative) (Details)
Debt (Narrative) (Details)
Debt (Long-Term Debt) (Details)
Debt (Future Principal Payments For Borrowings) (Details)
Supplemental Financial Statement Information (Property And Equipment) (Details)
Supplemental Financial Statement Information (Accrued Expenses And Other Current Liabilities) (Details)
Supplemental Financial Statement Information (Components Of Accumulated Other Comprehensive Income) (Details)
Supplemental Financial Statement Information (Reclassifications Out Of Accumulated Other Comprehensive Income (Loss)) (Details)
Supplemental Financial Statement Information (Components Of Other Income (Expense), Net) (Details)
Acquisitions (Narrative) (Details)
Goodwill And Other Intangible Assets (Changes In Carrying Amount Of Goodwill) (Details)
Goodwill And Other Intangible Assets (Acquisition-Related Intangible Assets That Are Being Amortized) (Details)
Goodwill And Other Intangible Assets (Narrative) (Details)
Goodwill And Other Intangible Assets (Expected Amortization Expense For Acquisition-Related Intangible Assets) (Details)
Commitments And Contingencies (Future Minimum Payments Under Non-Cancelable Operating Leases, Along With Sublease Income Amounts) (Details)
Commitments And Contingencies (Narrative) (Details)
Stockholders' Equity (Narrative) (Details)
Net Income Per Share (Schedule Of Earnings Per Share) (Details)
Compensation Plans (Stock Plans) (Details)
Compensation Plans (Stock Based Compensation) (Details)
Compensation Plans (Stock Based Award Activities) (Details)
Compensation Plans (401K Plans And Performance Fees) (Details)
Income Taxes (Narrative) (Details)
Income Taxes (Provision For Income Taxes) (Details)
Income Taxes (Reconciliation Of Federal Statutory Income Tax Rate To Effective Income Tax Rate) (Details)
Income Taxes (Significant Components Of Deferred Tax Assets And Liabilities) (Details)
Income Taxes (Summary Of Activity Related To Gross Unrecognized Tax Benefits) (Details)
Information About Segments And Geographic Areas (Revenue By Segment) (Details)
Information About Segments And Geographic Areas (Operating Income/Loss By Segment) (Details)
Information About Segments And Geographic Areas (Capital Expenditures By Segment) (Details)
Information About Segments And Geographic Areas (Stock-Based Compensation And Depreciation, Amortization And Impairment By Segment) (Details)
Information About Segments And Geographic Areas (Long-Lived Assets By Geographic Area) (Details)
Schedule Ii: Valuation And Qualifying Accounts (Details)

Material Contracts, Statements, Certifications & more

Alphabet Inc. provided additional information to their SEC Filing as exhibits

Form Type: 10-K Annual Report
Accession Number: 0001652044-19-000004
Submitted to the SEC: Mon Feb 04 2019 4:06:38 PM EST
Accepted by the SEC: Tue Feb 05 2019
Period: Monday, December 31, 2018
Industry: Computer Programming Data Processing