Alphabet - Earnings Review Q4'21

Highlights

• Revenue for Q4’21 of $75.3B Vs $71.8B estimates (up 32% compared to Q4’20).

• GAAP EPS for Q4’21 of $30.69 Vs $27.28 estimates (up 38% compared to Q4’20).

• Operating income for Q4’21 $21.9B up 40% and operating margin was 29%.

• Generated $92B cash from operations (up 42%) in FY’21 and repurchased $50B worth of shares.

• Free cash flow of $67B for FY’21, up 56%.

• Cash & cash equivalents, and marketable securities amount to $140B as of December 31, 2021, whereas debt totaled $15B.

Outlook and key takeaways

The Board of Directors had approved and declared a 20-for-one stock split in the form of a one-time special stock dividend on each share.

The year on year growth rate also reflected a benefit from lapping COVID-related weakness in 2020, which obviously will not be a factor in 2022.

In 2022, Google Play’s contribution to revenue growth will reflect the fee changes we started to implement in the third quarter of 2021.

In 2022, we expect a meaningful increase in CapEx. In technical infrastructure, servers will again be the largest driver of spend.