- Today Alphabet announced its quarterly earnings, which included the numbers for YouTube (for the first time) and Google Cloud
Today Google parent company Alphabet announced its earnings — which included the numbers for YouTube and Google Cloud. This is the first time that Alphabet announced its earnings with Sundar Pichai at the helm.
For the quarter ended December 31, 2019, Alphabet hit $46 billion in revenue, a 17% increase during the same period a year earlier. And the company’s profit for the quarter was $10.7 billion.
Google’s search business generated $27.2 billion for the quarter. And Google Cloud hit $2.614 billion for the quarter, up from $1.709 billion a year ago. During the full fiscal 2019, the cloud business generated $8.92 billion, up from $5.84 billion in 2018 and $4.06 billion in 2017. Alphabet’s “Other bets” hit $172 million in Q4 and $659 million for the fiscal year.
In the earnings report, Alphabet also revealed YouTube generated nearly $5 billion in ad revenue over the last 3 months. This means YouTube generates about 10% of Google’s revenue. And this is the first time that YouTube in its 15 year history revealed how much revenue is generated from ads. Google acquired YouTube in 2006 for $1.65 billion.
“Our investments in deep computer science, including artificial intelligence, ambient computing and cloud computing, provide a strong base for continued growth and new opportunities across Alphabet,” said Pichai. “I’m really pleased with our continued progress in Search and in building two of our newer growth areas — YouTube, already at $15 billion in annual ad revenue, and Cloud, which is now on a $10 billion revenue run rate.”