NASDAQ$GOOG

Alphabet · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Announced Q4 and Fiscal Year 2022 results, with revenue up 1% year over year and a focus on cost structure improvements.

Alphabet Inc. reported Q4 2022 consolidated revenues of $76.048 billion, a 1% increase year-over-year, and net income of $13.624 billion. The company is focusing on re-engineering its cost structure and investing in AI to drive future growth.

  • Q4 consolidated revenues were $76.048 billion, up 1% year over year, or up 7% in constant currency.
  • Full year 2022 revenues were $282.836 billion, up 10%, or up 14% in constant currency.
  • The company is working to improve all aspects of its cost structure to support investments in high-growth priorities.
  • A workforce reduction of approximately 12,000 roles was announced in January 2023.

Headline financials

Total Revenue

$76B

Previous: $75.3B+1.0%
EPS (adj)

$1.05

Previous: $1.53-31.4%
Capital Expenditures

$7.6B

Previous: $6.38B+19.0%
Free Cash Flow

$16B

Previous: $18.6B-13.6%
Net Income

$13.6B

Previous: $20.6B-34.0%
Operating Income

$18.2B

Previous: $21.9B-17.0%
Gross Profit

$40.7B

Previous: $42.3B-3.9%
Cash & Equivalents

$21.9B

Previous: $20.9B+4.5%
Total Assets

$365B

Previous: $359B+1.7%
Stock-Based Comp

$5.1B

Previous: $3.95B+29.0%

Revenue & EPS history

Alphabet · Revenue · Quarterly

$76B

Q4 2022+1%vs Q4 2021
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Revenue by segment

Alphabet · $110B total across 3 segments · Q1 2026

  • Google Services
    $89.6B
  • Google Cloud
    $20B
  • Other Bets
    $411M

Forward guidance

Alphabet anticipates incurring charges related to workforce reduction and office space optimization in Q1 2023. A change in the estimated useful life of servers and network equipment to six years is expected to reduce depreciation by approximately $3.4 billion for the full fiscal year 2023.

Tailwinds

  • Expected reduction of depreciation by approximately $3.4 billion for the full fiscal year 2023 due to change in useful lives of servers and network equipment.
  • Focus on AI is expected to drive innovation and growth across Google Services, Google Cloud, and Other Bets.
  • The company is actively working to improve its cost structure to support investments in high-growth areas.
  • Strong momentum in Cloud, YouTube subscriptions, and Pixel devices.
  • Long-term investments in deep computer science position the company well as AI reaches an inflection point.

Headwinds

  • Anticipated employee severance and related charges of $1.9 billion to $2.3 billion in Q1 2023 due to workforce reduction.
  • Expected exit costs of approximately $0.5 billion in Q1 2023 related to office space reductions.
  • Potential for additional charges in the future as the company further evaluates its real estate needs.
  • Fluctuations in the value of investments may contribute to the volatility of other income and expenses in future periods.
  • Workforce reduction of approximately 12,000 roles announced in January 2023.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2022

Historical avgQ4 2022

+1.2%

Avg return

Earnings day

+0.7%

Avg return

5 days after

+1.8%

Avg return

30 days after

62%

40 / 65 earnings

Positive

+20.1%

Q2 2015

Best reaction

-8.4%

Q4 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.4%+10.6%+8.4%
Q4 2025-4.2%-4.4%-10.5%
Q3 2025-1.6%+5.8%+19.3%
Q2 2025+0.9%+2.6%+7.9%
Q1 2025+1.5%-0.4%+5.0%
Q4 2024-6.9%-9.4%-15.4%
Q3 2024+4.6%-0.3%-0.4%
Q2 2024-4.9%-6.8%-8.8%
Q1 2024+7.8%+4.8%+11.6%
Q4 2023-8.4%-5.3%-9.8%
Q3 2023-8.1%-10.5%+1.5%
Q2 2023+6.4%+9.1%+7.0%
Q1 2023-2.2%+1.3%+16.5%
Q4 2022+3.7%+6.5%-7.3%
Q3 2022-7.9%-6.2%-4.0%
Q2 2022+5.0%+7.8%+8.8%
Q1 2022-6.7%-6.7%-12.1%
Q4 2021+9.1%+5.4%-1.0%
Q3 2021+5.5%+6.8%+5.7%
Q2 2021-2.3%-3.2%+1.8%
Q1 2021+2.3%+3.6%+3.3%
Q4 2020+8.9%+10.3%+7.8%
Q3 2020+6.9%+8.8%+18.2%
Q2 2020-2.6%-3.7%+8.0%
Q1 2020+5.1%+3.5%+11.0%
Q4 2019+0.9%+3.1%-3.3%
Q3 2019-0.2%+0.7%+3.8%
Q2 2019+9.9%+7.7%+1.2%
Q1 2019-6.6%-6.8%-12.2%
Q4 2018+3.2%-1.4%+4.2%
Q3 2018+2.0%-1.4%-2.6%
Q2 2018+5.3%+4.5%+1.9%
Q1 2018-4.9%-4.0%+0.6%
Q4 2017-5.0%-7.6%-7.8%
Q3 2017+4.7%+4.4%+6.9%
Q2 2017-2.3%-3.2%-4.7%
Q1 2017+3.9%+5.1%+11.4%
Q4 2016-1.5%-4.7%-0.8%
Q3 2016-0.5%-1.9%-4.7%
Q2 2016+3.6%+4.0%+3.7%
Q1 2016-4.5%
Q4 2015+2.9%
Q3 2015+9.2%
Q2 2015+20.1%
Q1 2015+4.8%
Q4 2014+4.8%
Q3 2014-3.6%
Q2 2014+2.1%
Q1 2014-0.1%
Q4 2013+6.7%
Q3 2013+1.2%
Q2 2013-2.4%
Q1 2013+2.2%
Q4 2012+5.2%
Q3 2012+1.0%
Q2 2012+0.1%
Q1 2012+0.9%
Q4 2011+3.0%
Q3 2011-6.1%
Q2 2011+4.8%
Q1 2011+1.7%
Q4 2010+0.9%
Q3 2010-0.4%
Q2 2010-3.2%
Q1 2010+0.4%

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