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Google’s parent company, Alphabet, has announced its financial results for the third quarter of 2021. Revenue was $65.118 billion, up 41% from the previous year, renewing $61.88 billion recorded in the second quarter of 2021. Net income also increased to $18.9 billion from $11.2 billion in the previous year.
According to the closing report, Google search revenue increased significantly from $26.338 billion in the same period of the previous year to $37.926 billion. YouTube ads also increased from $5.037 billion to $7.25 billion, and Google Cloud increased from $3.444 billion to $4.99 billion.
Total revenue of $65.118 million exceeded analysts’ expectations of $63.3 billion, but YouTube fell short of analysts’ expectations of $7.4 billion. Similarly, Google Cloud also missed analyst estimates of $5.07 billion. These results speak of the privacy-enhancing impact added in iOS 14.5.
In addition, revenue from other sectors, such as Waymo, which develops self-driving cars, increased to $182 million from $178 million in the previous year, but the loss expanded from $1.1 billion to $1.29 billion. Related information can be found here.
Microsoft also released its first quarter 2022 financial statements from July 1 to September 30, 2021. Sales for this quarter increased 22% year-on-year to USD 45.3 billion, operating profit increased by 27% year-on-year to USD 20.2 billion, and GAAP-based net income was USD 20.5 billion, up 48% year-on-year, showing a favorable trend backed by the demand due to the COVID-19 pandemic. seemed
According to the financial report released by Microsoft, corporate and consumer products and services (Productivity and Business Process), such as Office 365 and LinkedIn, increased 22% year-on-year to $15 billion, and the share of server products such as Windows Server and Azure Service-related (Intelligent Cloud) increased by 31% year-on-year to $17 billion, while Windows operating system license income and gaming-related and search-related devices such as Surface and Xbox (More Personal Computing) were 12% compared to the same period of the previous year. increased to $13.3 billion. Total sales were $45.3 billion, an increase of 22% compared to the same period last year.
By sector, in the Productivity and Business Process sector, corporate office and related cloud service sales increased 18% year-on-year, and consumer office and related cloud service sales increased 10% year-on-year. LinkedIn revenue grew 42% year-over-year, while sales of dynamics products and cloud services increased 31% year-over-year. Subscription service groups such as Office 365 for corporate and Microsoft 365 for consumers were particularly strong, while sales of Office 365 for corporate increased 23% compared to the same period of the previous year, and Microsoft 365 for consumers reached 54.1 million subscribers.
In the intelligent cloud sector, which had the highest growth rate of 31% among the three sectors, Azure and related cloud services recorded phenomenal growth of 50% compared to the same period last year, contributing greatly to the leap forward. Sales of server products and related cloud services are also showing strong growth, increasing by 35% compared to the same period last year, and sales in this segment are accelerating quarterly.
Meanwhile, the More Personal Computing sector grew only 12% compared to the same period last year. Windows OEM revenue grew 10% year-over-year, while sales of commercial versions of Windows and related cloud services grew 12% year-over-year. Although these Windows-related products are expected to increase their profits by entering the Windows 11-equipped PC market, supply restrictions due to global semiconductor shortages appear to be a stumbling block.
In terms of gaming, it recorded a 16% increase compared to the same period last year, but sales of Xbox-related content and services increased by 2% compared to the same period last year. Xbox hardware sales increased 166% year-over-year. As for the software, Microsoft records that the number of Xbox Game Pass subscribers is growing, but the last time the company announced that the number of Xbox Game Pass subscribers reached 18 million in January 2021, the specific number of subscribers was not disclosed.
Regarding hardware, the conversion profit ratio increased significantly compared to the same period of the previous year due to the introduction of the Xbox Series X/S, but Phil Spencer, who leads the Xbox division, said that the Xbox Series X will continue to be out of stock until June 2020 due to a lack of semiconductors. As with the installed PCs, it seems that sales are on the brakes due to supply constraints.
Meanwhile, Surface sales fell sharply, with a 17% decline compared to the same period last year. The Surface Pro 8 and Surface Go 3, launched in October 2021, are expected to have an impact in the second quarter of 2021, but it is said that the Surface is expected to achieve negative single-digit growth in the second quarter compared to the same period of the previous year. Related information can be found here.
Meanwhile, Twitter also announced its financial results for the third quarter of 2021 on October 26. Although there were concerns about the impact on ad revenue from ATT (App Tracking Transparency), a privacy enhancement feature that Apple introduced in iOS 14.5, Twitter’s third-quarter revenue increased 37% year-on-year to $1.284 billion.
Twitter’s third-quarter total revenue, reflecting performance by key product and region, totaled $1.284 billion, up 37% year-over-year. While gross sales increased, it posted an operating loss of $743 million this quarter, compared to $56 million in operating profit in the same period last year. The operating loss would be an operating profit of $23 million, minus the costs of a class action lawsuit of $766 million for misleading investors about the company’s growth prospects filed in 2016, or litigation-related expenses involving continuing investments in the business. is revealing
Of the total revenue of $1.284 billion, data licenses and other income were $143 million and advertising revenue was $1.141 billion, up 41% year-over-year.
Average daily active users leading to revenue was 211 million, up 13% year-over-year. Of the 211 million users, 37 million are US users and 174 million are international users.
Twitter’s third-quarter gross sales and ad revenues were in line with analysts’ forecasts, but daily active users did not reach analysts’ forecasts of 211.9 million. Twitter shares rose 4% in after-hours trading on Oct. 26 following the announcement of the third-quarter financial results.
As for Twitter’s third quarter results, there were concerns about the impact of Apple’s ATT, which allows users to limit their tracking of advertising purposes, but it is said that the impact of ATT on Twitter was only mild. Twitter speculates that the impact of ATT will be different between ad platforms depending on the ad format and element combination as to why Twitter has not suffered so much damage while ATT has had a serious impact on Facebook and others.
At this point, it is too early to assess the long-term impact of ATT, but at least in the third quarter, the impact of ATT on earnings was smaller than expected, and it is estimated that the impact will continue to be negligible in the fourth quarter. In addition, Twitter announced in the 3rd quarter a function that allows users to log in with a Google account or Apple ID, and a function to automatically block users who are being bullied, in addition to monetization functions for creators such as super follow and ticket space.
For the fourth quarter of 2021, Twitter expects gross sales of $1.5 billion to $1.6 billion and operating profit of $130 million to 180 million dollars. Related information can be found here.
AMD has reported its financial results for the third quarter of 2021. According to the financial statements, total sales increased 54% year-on-year to $4.313 billion, and operating profit reached $948 million, up 111% year-on-year.
In its third quarter 2021 financial report, AMD is appealing that its sales reached $4.313 billion, a 54% increase over the same period last year. In addition, operating profit reached $948 million, an increase of 111% year-on-year. AMD CEO Lisa Su stressed the company’s growth, saying the third quarter was a record quarter as revenue increased 54% and operating profit doubled year-over-year.
If you check the sales breakdown, the sales of the computing and graphics division dealing with CPU or GPU reached $2.4 billion, up 44% from the same period last year. AMD analyzes that the growth factor in the computing and graphics sector is due to the favorable performance of the Ryzen 5000 series, a CPU adopting the Zen 3 architecture that appeared in 2020, and the Radeon RX6000 series, a GPU equipped with an RDNA2 architecture.
Moreover, enterprise, embedded, and semi-custom sales increased 69% year-over-year to $1.9 billion. AMD appealed that the Epic 7003 series, a 3rd generation product of the Epic server CPU, was adopted by Microsoft and Google cloud computing services, and that companies such as Cloudflare, Netflix, and Videmo are announcing the adoption of the 3rd generation Epic. In addition, CEO Lisa Su said that AMD’s data center sales doubled as shipments of 3rd generation EPYC processors increased significantly.
AMD’s quarterly revenue has continued to grow since Q1 2020. In its financial report, AMD showed confidence in future growth by unveiling its forecast that revenue for the fourth quarter of 2021 will reach $4.5 billion, an increase of 39% compared to the same period last year, driven by business growth. Related information can be found here.
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