Alphabet INC.

•Alphabet Inc is an American multinational

conglomerate which was established on October 2,
2015 through the corporate restructuring of Google.
•Now it is the parent company of Google and all its
subsidiaries.
•Its is being headed by Larry Page as the CEO and
Sergey Brin as the president.
•The company is based in Mountain View, California.
It has over 75,606 employees as of 2017.
Alphabet’s Mission and Vision
 Alphabet’s Corporate Structure
•Alphabet’s Organizational
Structure is divisional.

•Each division is positioned as

a separate brand.

•Alphabet’s divisions have flat

Organizational structure.

•This ensures lack of

bureaucracy, high level of
flexibility and effective two
way communication between
the employees and upper
management.
Alphabet’s Timeline
 Alphabet’s Operating Segments
Alphabet operates its business in multiple operating segments which are
chiefly divided into two categories:

• Google – Google includes its main internet products such as Search,

Ads, Commerce, Maps, YouTube, Google Cloud, Android, Chrome, and
Google Play as well as its hardware initiatives. Its main source of
revenue comes primarily from advertising, sales of digital content, apps
and cloud offerings, and sales of hardware products.

• Other Bets – Other Bets includes businesses such as Access, Calico,

CapitalG, GV, Nest, Verily, Waymo, and X. Revenues from the Other Bets
are derived primarily through the sales of internet and TV services
through Google Fiber, sales of Nest products and services, and licensing
and R&D services through Verily.
 Overview of financial Data for
year ending 31st March 2016
key financial results for the fiscal year ended December 31,
2016
 Revenues of $90.3 billion and revenue growth of 20%
year over year
 Google segment revenue showed a growth of 20% year
over year and Other Bets revenue, 82% year over year
 Net income was $19.5 billion with a Capital expenditures
of $10.2 billion
 Operating expenses were $31.4 billion for year ending
2016
 Capital Expenditure in the last
three years
Capital expenditure(in millions $)
• Current(2017)
11200 Capital
11000
Expenditure for
the first three
10800 quarters stands at
10600
$ 8.877 billion .It is
expected to
10400
exceed the
10200
expenditure for
the year 2016
10000
which was around
9800 $ 10.2 billion.
9600

9400
2016 2015 2014
Capital Expenditure
• Capital Expenditure is
expected to rise again in
2017 as the company will
have to make significant
R&D investment in both
Google and Other Bets.

• As per its Annual Report

2016-2017,the company
will continue spending on
acquisition and other such
investment as acquisitions
generally enhance the
breadth and depth of the
company as well as
enhance their expertise in
engineering and other
CAPITAL EXPENDITURE FOR THE YEAR
functional areas.
2017
 Google’s Cash flow trends

2014 2015 2016

Operating 36,036 23,024 26,572

Investing -21,055 -23,711 -31,165

Financing-2,087 -4,225 -8,332

 Graph showing ratio between
Total assets and Total liabilities of
the company for 5 years
 Stock Market performance

The graph above represents the changing price of “ GOOGL” stock-(Class A ) as per NASDAQ .The graph
clearly shows that over the period stock prices have been on the rise with a few dips in price in some
quarters.

Note: As Alphabet is Google’s holding company , Google’s stocks have been converted to Alphabet’s stock which trade under Google’s former tickr symbol of “GOOG”-Class A Stock
and “GOOGL”-Class C stock.
The accompanying chart compares the 5-year combined aggregate return to investors for
Alphabet Inc's. normal stock in respect to the combined aggregate returns of the S&P 500
file, the RDG internet composite list, and the NASDAQ composite list. An investment of
$100 (with reinvestment of all its dividends) is assumed to have been made in the
organization's Class A typical stock and in each record on December 31, 2011 and its
relative performance is tracked through December 31, 2016.