2019 Q4 Form 10-K Financial Statement

#000165204421000010 Filed on February 03, 2021

View on sec.gov

Income Statement

Concept 2019 Q4 2018 Q4 2018
Revenue $46.08B $39.28B $136.8B
YoY Change 17.31% 21.51% 23.42%
Cost Of Revenue $21.02B $17.92B $59.55B
YoY Change 17.31% 25.59% 30.64%
Gross Profit $25.06B $21.36B $77.27B
YoY Change 17.31% 18.29% 18.38%
Gross Profit Margin 54.38% 54.38% 56.48%
Selling, General & Admin $8.567B $7.103B $23.26B
YoY Change 20.61% 17.33% 17.85%
% of Gross Profit 34.19% 33.26% 30.1%
Research & Development $7.222B $6.034B $21.42B
YoY Change 19.69% 40.13% 28.84%
% of Gross Profit 28.82% 28.25% 27.72%
Depreciation & Amortization $3.413B $2.580B $9.035B
YoY Change 32.29% 27.34% 30.66%
% of Gross Profit 13.62% 12.08% 11.69%
Operating Expenses $15.79B $13.14B $44.68B
YoY Change 20.19% 26.81% 22.88%
Operating Profit $9.266B $8.221B $27.52B
YoY Change 12.71% 6.82% 5.14%
Interest Expense $1.548B $1.674B $114.0M
YoY Change -7.53% 359.89% 4.59%
% of Operating Profit 16.71% 20.36% 0.41%
Other Income/Expense, Net -$110.0M $177.0M $7.389B
YoY Change -162.15% -521.43% 627.98%
Pretax Income $10.70B $10.07B $34.91B
YoY Change 6.27% 25.62% 28.39%
Income Tax $33.00M $1.124B $4.177B
% Of Pretax Income 0.31% 11.16% 11.96%
Net Earnings $10.67B $8.948B $30.74B
YoY Change 19.26% -396.29% 142.74%
Net Earnings / Revenue 23.16% 22.78% 22.46%
Basic Earnings Per Share $44.22
Diluted Earnings Per Share $719.4K $638.3K $43.70
COMMON SHARES
Basic Shares Outstanding
Diluted Shares Outstanding

Balance Sheet

Concept 2019 Q4 2018 Q4 2018
SHORT-TERM ASSETS
Cash & Short-Term Investments $21.79B $17.92B $109.1B
YoY Change 21.6% -82.41% 7.14%
Cash & Equivalents $18.50B $16.70B $16.70B
Short-Term Investments $3.296B $1.222B $92.44B
Other Short-Term Assets $4.412B $4.236B $4.236B
YoY Change 4.15% 42.0% 42.0%
Inventory $999.0M $1.107B $1.107B
Prepaid Expenses
Receivables $25.33B $20.84B $20.84B
Other Receivables $2.166B $355.0M $355.0M
Total Short-Term Assets $152.6B $135.7B $135.7B
YoY Change 12.46% 9.15% 9.15%
LONG-TERM ASSETS
Property, Plant & Equipment $73.65B $59.72B $59.72B
YoY Change 23.32% 40.9% 40.9%
Goodwill $20.62B $17.89B
YoY Change 15.3% 6.81%
Intangibles $1.979B $2.220B
YoY Change -10.86% -17.53%
Long-Term Investments $1.300B $1.300B $13.86B
YoY Change 0.0% -7.14% 77.38%
Other Assets $2.342B $2.693B $3.430B
YoY Change -13.03% 0.79% 2.33%
Total Long-Term Assets $123.3B $97.12B $97.12B
YoY Change 26.99% 33.06% 33.06%
TOTAL ASSETS
Total Short-Term Assets $152.6B $135.7B $135.7B
Total Long-Term Assets $123.3B $97.12B $97.12B
Total Assets $275.9B $232.8B $232.8B
YoY Change 18.52% 17.99% 17.99%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $5.561B $4.378B $4.378B
YoY Change 27.02% 39.56% 39.56%
Accrued Expenses $23.07B $16.96B $14.00B
YoY Change 36.02% 66.63% -2.82%
Deferred Revenue $1.908B $1.784B
YoY Change 6.95% 24.58%
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $0.00
YoY Change
Total Short-Term Liabilities $45.22B $34.62B $34.62B
YoY Change 30.62% 43.16% 43.16%
LONG-TERM LIABILITIES
Long-Term Debt $3.958B $3.950B $4.012B
YoY Change 0.2% 0.18% 1.08%
Other Long-Term Liabilities $2.534B $3.545B $15.27B
YoY Change -28.52% 15.89% -5.82%
Total Long-Term Liabilities $6.492B $7.495B $19.28B
YoY Change -13.38% 7.04% -4.46%
TOTAL LIABILITIES
Total Short-Term Liabilities $45.22B $34.62B $34.62B
Total Long-Term Liabilities $6.492B $7.495B $19.28B
Total Liabilities $74.47B $55.16B $55.16B
YoY Change 34.99% 23.15% 23.15%
SHAREHOLDERS EQUITY
Retained Earnings $152.1B $134.9B
YoY Change 12.78% 19.11%
Common Stock
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $201.4B $177.6B $177.6B
YoY Change
Total Liabilities & Shareholders Equity $275.9B $232.8B $232.8B
YoY Change 18.52% 17.99% 17.99%

Cashflow Statement

Concept 2019 Q4 2018 Q4 2018
OPERATING ACTIVITIES
Net Income $10.67B $8.948B $30.74B
YoY Change 19.26% -396.29% 142.74%
Depreciation, Depletion And Amortization $3.413B $2.580B $9.035B
YoY Change 32.29% 27.34% 30.66%
Cash From Operating Activities $14.43B $12.99B $47.97B
YoY Change 11.09% 26.48% 29.33%
INVESTING ACTIVITIES
Capital Expenditures -$6.052B -$7.081B $25.14B
YoY Change -14.53% 64.41% 90.68%
Acquisitions
YoY Change
Other Investing Activities $1.349B $205.0M -$98.00M
YoY Change 558.05% -107.69% -1.01%
Cash From Investing Activities -$4.703B -$6.876B -$28.50B
YoY Change -31.6% -1.41% -9.23%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $9.075B
YoY Change 87.27%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -7.326B -2.746B -$13.18B
YoY Change 166.79% -13.59% 58.82%
NET CHANGE
Cash From Operating Activities 14.43B 12.99B $47.97B
Cash From Investing Activities -4.703B -6.876B -$28.50B
Cash From Financing Activities -7.326B -2.746B -$13.18B
Net Change In Cash 2.398B 3.365B $5.986B
YoY Change -28.74% 2800.86% -371.72%
FREE CASH FLOW
Cash From Operating Activities $14.43B $12.99B $47.97B
Capital Expenditures -$6.052B -$7.081B $25.14B
Free Cash Flow $20.48B $20.07B $22.83B
YoY Change 2.05% 37.69% -4.5%

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<div style="margin-top:6pt;text-align:justify"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:700;line-height:120%">Use of Estimates</span></div><div style="margin-top:6pt;text-align:justify;text-indent:24.75pt"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Preparation of consolidated financial statements in conformity with generally accepted accounting principles in the United States ("GAAP") requires us to make estimates and assumptions that affect the amounts reported and disclosed in the financial statements and the accompanying notes. Actual results could differ materially from these estimates. On an ongoing basis, we evaluate our estimates, including those related to the allowance for credit losses, fair values of financial instruments (including non-marketable equity securities), intangible assets and goodwill, useful lives of intangible assets and property and equipment, income taxes, and contingent liabilities, among others. We base our estimates on assumptions, both historical and forward looking, that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities.</span></div><div style="margin-top:6pt;text-align:justify;text-indent:24.75pt"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">As of December 31, 2020 the impact of COVID-19 continues to unfold and the extent of the impact will depend on a number of factors, including the duration and severity of the pandemic; the uneven impact to certain industries; advances in testing, treatment and prevention; and the macroeconomic impact of government measures to contain the spread of the virus and related government stimulus measures. As a result, certain of our estimates and assumptions, including the allowance for credit losses for accounts receivable, the credit worthiness of customers entering into revenue arrangements, the valuation of non-marketable equity securities, including our impairment assessment, and the fair values of our financial instruments require increased judgment and carry a higher degree of variability and volatility that could result in material changes to our estimates in future periods.</span></div><div style="margin-top:6pt;text-align:justify;text-indent:24.75pt"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">In January 2021, we completed an assessment of the useful lives of our servers and network equipment and determined we should adjust the estimated useful life of our servers from three years to four years and the estimated useful life of certain network equipment from three years to five years. This change in accounting estimate will be effective beginning fiscal year 2021.</span></div>
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<div style="margin-top:6pt;text-align:justify"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:700;line-height:120%">Certain Risks and Concentrations</span></div><div style="margin-top:6pt;text-align:justify;text-indent:24.75pt"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Our revenues are primarily derived from online advertising, the market for which is highly competitive and rapidly changing. In addition, our revenues are generated from a multitude of markets in countries around the world. Significant changes in this industry or changes in customer buying or advertiser spending behavior could adversely affect our operating results.</span></div>
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<div style="margin-top:6pt;text-align:justify"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:700;line-height:120%">Prior Period Reclassifications</span></div><div style="margin-top:6pt;text-align:justify;text-indent:24.75pt"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Certain amounts in prior periods have been reclassified to conform with current period presentation. See Note 15 for further details.</span></div>
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