Alphabet(GOOGL) - 2023 Q3 - Quarterly Report

Financial Performance - The company reported a net income of $XX million for the nine months ended September 30, 2023, compared to $XX million for the same period in 2022, reflecting a year-over-year change of XX%[6] - Revenues for Q3 2023 reached $76,693 million, a 10.4% increase from $69,092 million in Q3 2022[11] - Net income for Q3 2023 was $13,910 million, down 29.5% from $19,689 million in Q3 2022[11] - Basic net income per share for Q3 2023 was $1.07, compared to $1.56 in Q3 2022, reflecting a decrease of 31.4%[11] - For the nine months ended September 30, 2023, revenues totaled $221,084 million, compared to $206,788 million for the same period in 2022, representing a 6.9% increase[11] - Net income for the nine months ended September 30, 2023, was $53,108 million, an increase from $46,348 million in the same period of 2022, representing a growth of approximately 14.9%[22] - Total revenues for the nine months ended September 30, 2023, reached $221,084 million, up from $206,788 million in the prior year, indicating a year-over-year increase of about 6.9%[31] - The company reported a comprehensive income of $10,886 million for Q3 2023, down from $18,644 million in Q3 2022[13] Assets and Liabilities - As of September 30, 2023, total assets increased to $396.7 billion from $365.3 billion as of December 31, 2022, representing an increase of approximately 8.5%[9] - Current liabilities increased significantly to $86.3 billion from $69.3 billion, marking a rise of approximately 24.6%[9] - Stockholders' equity grew to $273.2 billion, up from $256.1 billion, indicating an increase of about 6.7%[9] - Total liabilities decreased to $123,509 million as of September 30, 2023, down from $109,120 million at the end of 2022[9] - The total stockholders' equity as of September 30, 2023, was $273,202 million, up from $256,144 million at the end of 2022[9] Cash and Investments - Total cash, cash equivalents, and marketable securities rose to $119.9 billion, up from $113.8 billion, reflecting a growth of about 5.5%[9] - Cash and cash equivalents at the end of the period on September 30, 2023, were $30,702 million, up from $21,984 million at the end of the previous period, showing an increase of about 39.5%[22] - As of September 30, 2023, total investments measured at fair value amounted to $110.641 billion, with gross unrealized gains of $5 billion and losses of $4.33 billion[37] - The carrying value of non-marketable equity securities was $28.8 billion, with $10.4 billion remeasured at fair value during the three months ended September 30, 2023[37] Expenses and Costs - Total costs and expenses for Q3 2023 were $55,350 million, an increase of 6.7% from $51,957 million in Q3 2022[11] - Research and development expenses increased to $11,258 million in Q3 2023, up from $10,273 million in Q3 2022, marking a 9.6% rise[11] - The provision for income taxes for Q3 2023 was $2,323 million, compared to $1,508 million in Q3 2022, indicating a 54.1% increase[11] - Total employee severance and related charges recorded during the nine months ended September 30, 2023, were $2.1 billion[75] Share Repurchase and Stock Compensation - In Q3 2023, Alphabet repurchased $15.9 billion of Class A and Class C shares, totaling $46.2 billion for the nine months ended September 30, 2023[94] - As of September 30, 2023, Alphabet has $52.3 billion remaining for share repurchases after the Board authorized an additional $70.0 billion in April 2023[94] - Total stock-based compensation expense for Q3 2023 was $5.8 billion, up from $5.0 billion in Q3 2022, with nine-month totals of $16.5 billion compared to $14.4 billion[101] Regulatory and Legal Matters - The company is facing heightened regulatory scrutiny, which may impact future operations and financial results[7] - The company recognized a charge of $2.7 billion for an antitrust fine imposed by the European Commission in 2017, which remains under appeal[85] - The company is currently involved in multiple antitrust investigations, including a trial that commenced on September 12, 2023, with a decision expected in 2024[86] - The company has ongoing legal matters related to privacy investigations and lawsuits in multiple jurisdictions, which could result in substantial fines and penalties[91] Future Outlook and Investments - The company anticipates continued growth in non-advertising revenues, which may positively impact margins[6] - The company plans to invest in new businesses, products, services, and technologies, as well as in acquisitions and strategic investments[6] - The company expects fluctuations in traffic acquisition costs (TAC) and associated TAC rates, which could affect overall margins[6]