Alphabet Posts a Big Quarter Too

Posted on February 2, 2021 by Paul Thurrott in Google with 9 Comments

Google owner Alphabet today reported that it earned a net income of $15.65 billion on revenues of $56.9 billion for the quarter ending December 31, 2020. For the full year 2020, Alphabet reported $41.2 billion on revenues of $182.5 billion.

“Our strong results this quarter reflect the helpfulness of our products and services to people and businesses, as well as the accelerating transition to online services and the cloud,” Google and Alphabet CEO Sundar Pichai said. “Google succeeds when we help our customers and partners succeed, and we see significant opportunities to forge meaningful partnerships as businesses increasingly look to a digital future.”

As usual, Google delivered most of Alphabet’s revenues and all of its net income, with Alphabet’s other bets all delivering losses. Google Services contributed $52.9 billion in net income in the quarter, Google Cloud added $3.8 billion, and Alphabet’s other bets added $196 million.

Google’s advertising business contributed $46.2 billion in revenues in the quarter, spread out across Google Search ($32 billion), YouTube ads ($6.9 billion), and other advertising. Overall, advertising accounted for 81.2 percent of Alphabet’s revenues. Google’s non-advertising revenues were $6.7 billion.

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Comments (12)

12 responses to “Alphabet Posts a Big Quarter Too”

  1. jjaussie

    Alphabet's Other Bets were $196 million perhaps rather than billion . . .

  2. Chris_Kez

    I just read on Bloomberg that their cloud business lost $1.2B for the quarter and $5.6B for the year. I’d be disappointed as an investor that it’s not yet a profitable business.

    • abdulla77

      In reply to Chris_Kez: Read the same thing too.. Got a feeling Google will shutdown their cloud business at some point..

    • Daishi

      In reply to Chris_Kez:

      And yet they still made $15.65 billion profit in three months. I feel like they’ve got it covered.

      Its almost as if a company that makes ten of billions of dollars a year can afford to carry a few loss making businesses that are important to its future. Probably a lesson someone should have passed on to Microsoft a few years ago, before they went slashing and burning through all of their consumer products.

      • Chris_Kez

        In reply to Daishi:

        I think the upside on Google Cloud is better than any MS consumer product ever was. Windows Phone, Xbox Music, Cortana, etc. could surely have been carried by Microsoft's other big businesses, but they didn't really enhance those core businesses in any appreciable way, and were never going to be profit centers on their own.

    • helix2301

      In reply to Chris_Kez:

      What's even crazier about that is Spotify uses Google cloud and they took a little hit this quarter from additional cloud hosting costs.

  3. mikegalos

    How is Google Advertising's 81.2% of corporate revenue compared to Year over Year?

    That is kind of the key to their long-failing attempts to not be a one-trick-pony especially critical given their upcoming restrictions on targeted ad revenue due to Apple's new policies and both EU and US antitrust litigation.

  4. mikegalos

    In reply to Pungkuss:

    The one thing that might change is that Google's ad revenue is based on the value of their targeting. With that targeting down the ad revenue should shift either to lower-cost ad platforms that don't have that targeting to sell or Google will have to drop their prices to compete with less targeting based providers.

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