GOOG Flashcards
GOOGL (Alphabet) Stock Price
$2,356
Google 2020 Revenue
182.5B (2020)
Google CEO
Sundar Pichai
Q1 2021 Revenues
$55.3B (up 34% Y/Y)
What’s driving Y/Y Revenue gains in 1Q21?
Elevated consumer activity online and growth in Advertising spend; amplified by Post-COVID economic bounce back
1Q21 Operating Margin
30% (vs 19% 1Q20)
1Q21 EPS
$26.29 (vs $9.87 1Q20)
1Q21 Operating Income
$16.4B (vs $8.0 1Q20)
What comprises Google Services
Google Advertising (Google Search, YouTube Ads, Google Network) and Google Other
Google Revenues is comprised of what components
Google Services, Google Cloud, Other Bets
What is Google Adsense
Banner Ads on third-party web pages (used technology to determine themes of a webpage to place relevant ads)
What is Google Adwords
Ads on Google Search
What is Google Analytics
Using Analytics, anyone, including advertisers, could track and measure website activity — how many people visited, which websites referred them back, and of course, how many users performed a valuable action like buying something via a Google ad
How does Google monetize Gmail?
They place ads while customers are using the service
How does Google monetize Chrome search engine?
Created a faster browser which means more searches = more adds & money
Google Chrome search engine penetration?
~66%
How does Google monetize Maps?
3rd party websites and aps pay for Gmail integration
Advantage of DoubleClick
Uses cookies to identify and store user’s browsing history, making ads more relevant
How does Google monetize mobile?
Android software (ad revenue off of apps i.e. gmail, google search, and maps), Commission on all in-app purchases (~30%), phone sales, and device sales
What’s included in Google Cloud Services?
Google organizes its cloud services in 18 categories, including compute, storage, databases, networking, data analytics & the Internet of Things, to name a few. Cloud also includes G Suite
Who are Google’s top competitors in the Cloud space?
In the cloud computing race, Google occupies the third position, after Amazon & Microsoft, with an expected annual revenue run rate of $11 Billion in 2020
What other companies does Alphabet own?
Waymo, DeepMind (AI research), CapitalIG (venture capital)
TAC stands for
Traffic Acquisition Costs
1Q21 Net Income
$17.9B
How does Google monetize YouTube?
Sponsored Ads, Embedded Ads, banner ads, and subscription based products such as YouTube Premium or YouTube TV
How does Google monetize Google Cloud?
Google Cloud includes Google’s infrastructure and data analytics platforms, collaboration tools, and other
services for enterprise customers. Google Cloud generates revenues primarily from fees received for
Google Cloud Platform services and Google Workspace (formerly known as G Suite) collaboration tools
How does Google monetize Other Bets?
Revenues from the Other Bets are derived primarily through the sale of internet services as well as licensing and R&D services
Google Revenue drivers
1) Queries - is google the best place to get information
2) Ad coverage - what % is commercial and how much are we covering with ads
3) Click through rates - are these being optimized through effective and creative ads based on user insights and relevancy
4) Cost per Click - how much customers bid for a click on their ad - driven by quality of traffic
What are some of Google’s risks
Regulatory / antitrust concerns, privacy concerns
What are TACs?
The traffic acquisition cost represents the expenses incurred by an internet company, like Google, to gain qualified traffic on its pages for monetization. TACs are paid to Google Network Members primarily for ads displayed on their properties and amounts paid to our distribution partners who make available our search access points and services. Our distribution partners include browser providers, mobile carriers, original equipment manufacturers, and software developers. Google traffic acquisition costs (TAC) comprise the payout to Google partners, which take part to program like AdSense. It also comprises browser providers, mobile carriers and any other distribution channel
What are TAC drivers
Google properties TAC rates are influenced by device mix between mobile, desktop, and tablet, partner mix, partner agreement terms such as revenue share arrangements, and the percentage of queries channeled through paid access points
2020 Net Income
$40.2B
How many employees does Google have?
~140K in 1Q21
What is YouTube’s busn model?
Makes money from: Sponsored Ads, Embedded Ads, banner ads, and subscription based products such as YouTube Premium or YouTube TV
Expenses include: revenue sharing through YouTube’s partner program (ads/paid subscriptions/merchandise), labor for developers, Google cloud - server/storage expenses
What does RFP stand for?
Request for proposal: A request for proposal is a document that solicits proposal, often made through a bidding process, by an agency or company interested in procurement of a commodity, service, or valuable asset, to potential suppliers to submit business proposals
Procurement vs Purchasing
Procurement is the process of determining what you want (i.e. market research, making list of needs, etc)
