Revenue Analysis:
- Total and Operating Revenue: GOOGL’s total and operating revenue increased from $69.787 billion in Q1 2023 to $80.539 billion in Q1 2024, showing a consistent upward trend across subsequent quarters.
- Gross Profit Margins: Gross profit steadily rose from $39.175 billion in Q1 2023 to $46.827 billion in Q1 2024. This indicates improved efficiency in managing production or service delivery costs relative to sales.
Cost Management:
- Cost of Revenue: There was an upward trend in cost of revenue, moving from $30.612 billion in Q1 2023 to $33.712 billion in Q1 2024.
- Operating Expense: Operating expenses also increased from $21.760 billion in Q1 2023 to $21.355 billion in Q1 2024, suggesting a significant expenditure to support expanding operations or revenue growth.
- Total Expenses: Total expenses grew from $52.372 billion in Q1 2023 to $55.067 billion in Q1 2024, pointing to heightened overall operational activities.
Profitability Analysis:
- EBITDA: EBITDA increased from $21.020 billion in Q1 2023 to $30.279 billion in Q1 2024, indicating an improvement in earnings before interest, taxes, depreciation, and amortization.
- Operating Income: Operating income rose from $17.415 billion in Q1 2023 to $25.472 billion in Q1 2024, reflecting better operational efficiency.
- Pretax Income: Pretax income grew from $18.205 billion in Q1 2023 to $28.315 billion in Q1 2024, showing an improved profitability before tax deductions.
- Net Income: Net income saw growth from $15.051 billion in Q1 2023 to $23.662 billion in Q1 2024, demonstrating overall profit growth after all deductions.
Cash Flow Indicators:
- Reconciled Depreciation: This increased from $2.635 billion in Q1 2023 to $3.413 billion in Q1 2024, which may indicate increased investments in capital goods requiring depreciation.
- Interest Expense: Interest expense slightly increased from $80 million in Q1 2023 to $94 million in Q1 2024, which might imply larger financing or debt service requirements.
Taxation:
- Tax Rate: The tax rate has fluctuated, with an increase observed from 0.173 in Q1 2023 to 0.164 in Q1 2024.
- Tax Provision: The tax provision increased from $3.154 billion in Q1 2023 to $4.653 billion in Q1 2024, aligning with the uptrend in pretax income.
- Tax Effect of Unusual Items: There was significant variation, albeit mostly minimal figures relative to the total income.
Shareholder Metrics:
- Diluted and Basic EPS: Both diluted and basic EPS have shown improvements, from $1.17 (diluted) and $1.18 (basic) in Q1 2023 to $1.89 (diluted) and $1.91 (basic) in Q1 2024.
- Average Shares: There’s been an incremental increase in both diluted and basic average shares over the periods reviewed.
- Net Income Available to Common Stockholders: Increased from $15.051 billion in Q1 2023 to $23.662 billion in Q1 2024, indicating higher earnings distribution capability for shareholders.
Conclusion:
GOOGL has shown consistent revenue growth, improved profitability, and effective cost management over the observed periods. The company has also sustained its capital investments and managed its tax liabilities effectively. Given these positive trends, the outlook for the company remains robust. Shareholders should find reassurance in the rising EPS and net income metrics, indicating a favorable investment return potential. Moving forward, maintaining operational efficiency and exploring new market opportunities could be key to sustaining this growth trajectory.