Executive Summary

• In its first reported quarter following Google’s restructuring into two divisions, Alphabet reported 4Q15 revenues of $21.3 billion, up 18% year over year and far exceeding the consensus estimate of $16.9 billion.
• Diluted non-GAAP EPS were $8.67, up 28.3% year over year and exceeding the consensus estimate of $8.09.
• Revenue drivers were mobile search, YouTube and programmatic advertising.
• Aggregate paid clicks increased by 31% year over year, and paid clicks on Google websites increased by 40% year over year alongside decreases in cost per