Microsoft, Apple, and Amazon all reported their earnings last month. And now, it’s time for Alphabet — Google’s parent company. The company today reported its earnings for the fourth quarter of the 2019 financial year.
Alphabet reported net income of $10.7 billion on revenues of $46.08 billion in Q4 2019.
For the fourth quarter of 2019, Google Search and “other” brought in $27.2 billion in revenues. Total revenue from Google was $46 billion, bringing the total revenue from Google in 2019 up to $162 billion — that’s a whopping 18% increase year-over-year.
For the first time ever, Google is also revealing revenue from YouTube ads, and it is pretty amazing. YouTube brought in $15 billion in annual ad revenue in 2019, with $4.7 billion in the last quarter of 2019. It’s no secret YouTube is big business for Google and Alphabet, but this just further proves how the platform is such a core part of Google’s business.
Google’s Cloud division, on the other hand, brought in $2.6 billion in revenue in the last quarter. By comparison, Microsoft’s Intelligent Cloud business posted $11.9 billion in revenues in the same quarter.
“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 Sundar Pichai, who was recently appointed as the CEO of both Google and its parent company Alphabet.
“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,” added Pichai.
Google’s ad business hit a revenue of $37.3 billion in Q4, which is obviously a majority of both Google and Alphabet’s revenue. Alphabet’s Other Bets brought in $172 million in revenue, which is not too shocking.