Alphabet (GOOG) 2 Feb 222021 Q4 Earnings call transcript

Welcome, everyone, and thank you for standing by for the Alphabet Fourth Quarter 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions]. I'd now like to hand the conference over to your speaker today, Jim Friedland, Director of Investor Relations. ahead. go Please

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Thank you, Philipp.

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to generate marketable with ended in $XX.X free and We in with $XXX billion XXXX. $XX quarter securities. strong cash and year in billion the billion the We flow continue cash

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of growth financial our turn with up billion, Let segment. strength broad-based starting the other our Services now $XX.X in XX%, $XX.X again to Google me were revenues up Google results, business, retail. revenues segment and across advertising quarter with led Google were billion Search our XX%. in Total strong by Services

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Let on our comments me close with outlook. some

pandemic Googlers We global are focused macro for have as partners times, delivering a has on Throughout for nearly users services on uncertainty brought and years these two growth. and unprecedented helpful in difficult change the driving well that into environment. long-term innovation as remained

COVID-related reflected fourth reflected from revenues segment, Google in rate in are XXXX, online pleased and by benefit momentum the by growth XXXX, Pro In we broad-based growth advertiser Services, we strong which obviously with the pleased The and quarter. for are to QX factor activity. from and strength terms weakness in revenues, continued with Within our Pixel a driven which be hardware outlook X also of our Pixel in consumer year-on-year in lapping other revenue for X be year-on-year XXXX. will year not a very full the

reflect the in fee of reflected the growth ago. revenues the weeks quarter quarter. and Fitbit, implement contribution respect in to hardware a trends the started in remained in That XXXX. XXXX, Play’s of to underlying acquisition we With revenue the reminder, of Play, lapped Google to changes will third healthy consumer a said, also spend being As fourth we XXXX engagement couple which

Google investment we of we within investing for in the levels opportunities see many meaningfully focused terms are growth. In Services,

Turning represented to Cloud, substantial XXXX another of year Google growth.

organization, help digital our and their partner Our investments been go-to-market product in ecosystem with off as we transformation. have innovation paying customers

XX% Google a faster with XXXX compared for the at cloud You overall. year full can to XXXX grow to increased rate see revenues by GCP that continuing revenues than Cloud

continue market do respect the At to technical the on loss exchange remain While invest scale. we operating headwind. opportunity foreign Cloud to and benefit added in time, from improved aggressively the quarter, hires we in Alphabet headcount, we based longer-term plan given majority We and level, and X,XXX profitability to operating the Alphabet over revenues path XXXX, impact spot rates, the Cloud fourth to margin the see. expect focused the should in were current for nearly sizable margin be in operating reported increased we on people to first and quarter, operating a loss With of on roles.

expect across XXXX talent to strong a of continue and great hiring Alphabet. pace We attract in

support to infrastructure, Services fourth quarter Turning CapEx. in most results ongoing in investment both The Cloud. technical in servers, in to our reflect Google the notably growth and primarily ongoing Google

have will pace in increased of XXXX, the In CapEx. respect fit-outs a after over we spend. you meaningful office the pursue also construction. of two infrastructure, the of past largest real and construction CapEx us investment also fairly be where to increase in With we and make acquisitions Recently, expect fit-outs technical office We investment seen are again years, In facilities. they sense. ground-up estate servers facilities, reaccelerating ground-up in driver muted

announced billion announced take have now in purchase building completed your of quarter the the And billion For first plans we Thank quarter, Philipp in Sundar, you. in will and of the York leased we third example, previously office headquarters we month, building $X.X XXXX. that a London. to purchase questions. And of for I last New $X

Instructions]. [Operator

from from comes Doug of question the line first Our JPMorgan. Anmuth

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roles continuing opportunities ahead. hire, really with The the and we’re so I said. technical in again were as to see majority And we pleased

question next our Sheridan And comes from Eric Goldman Sachs. you. Thank from

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questions, much. so two Maybe Thanks if can. I

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Stanley. comes Thank And Nowak Morgan our from from you. Brian next question

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for taking Maybe Thanks for Great. my have questions. I one the two. Philipp. first

much product You’ve over e-commerce about improving for months retail XX so to and last progress Search made advertisers. the XX the

As the the Sundar, commerce across Can to more verticals built the opportunity shopping out are innovation for really still go us are to or other you of into you what XXXX? you you excited on little value second that of see both talked about to Search, really areas of already in verticals most just YouTube. bit Then drive look question, advertisers opportunity innovation we where or nonretail or as YouTube? have Philipp about versus for Thanks. realize to the what you hurdles either sort opportunity clear commerce aspects on talk most a

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be shopping a Super can early to testing do. lot with Shorts. integrated also there’s more So how on

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strong First, growth. very on Search,

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we and part, context both investing in and Search. Google apply Deep deeply first so -- and the and in the the it but are R&D across company, On that then AI line -- obviously across take AI and of we particularly

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including the AI this. and area real teams, We teams are between good to then productize core there. our kind of interfaces we product committed to Search have And leading

to to see just the nature. search So information and continue continuing increasingly think only going of grow, us to quality. in lead world primarily, I is in I multimodal find you’re it’s getting

Just whether Search, something typing, like the and images, thinking audio, That’s and an continue incorporating wanting or at we regardless providing journey to looking video, answer. it users doing from it that. back through text are they speaking took of then and we’ll the to leap between AI

progress comments that’s revenue verticals. breadth customer if as and at terms we’re of in noted, the in back pleased our the made, overall, Cloud, both of we you ongoing business, growth, Sundar I in reflected the industry And very backlog, the wins, that with the the and step

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joining you our Thank XXXX forward speaking first to Thanks, on have call. again evening. today. good everyone, for quarter with us you and look a We

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