Google’s parent company Alphabet has for the first time given its investors a look at the earnings of YouTube and Google Cloud. YouTube generated $15 billion in ad sales in 2019, an increase of 36% from $11 billion in 2018.
Cloud revenue was $8.9 billion in 2019, a remarkable 53% increase from $5.8 billion in 2018.
Alphabet announced its financial results for the fourth quarter of 2019 on 3rd February 2020. This will be the company’s first earnings report since Sundar Pichai took over as CEO of Alphabet.
Google’s co-founders Larry Page and Sergey Brin stepped aside after 21 years of running the company in 2019. Alphabet also for the first time became a trillion-dollar company. This feat makes them join other tech giants like Apple, Amazon, and Microsoft as the only US companies to have reached the trillion-dollar threshold.
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Google is also facing antitrust investigations from both state and federal officials in the US. 2019 also saw members of its workforce openly revolt, protesting Google’s work in China, treatment of contractors, and handling of s****l harassment allegations against senior executives.
Alphabet exceeds share price estimates, falls shy in earnings
Pichai had mixed news to share with Alphabet’s investors on 3rd December 2020. Alphabet tallied $46.07 billion in sales at the end of the last quarter of 2019, shy of analyst estimates of $46.94 billion. Earnings per share exceeded the expectations of $12.53 per share at $15.35, according to Thomson Reuters.
“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,” Pichai said in a statement.
In a conference call with analysts, Pichai also provided some insight into YouTube’s subscription business. He said YouTube Music and Premium have 20 million paid subscribers in total. YouTube TV also has 2 million subscribers in the US alone as revealed by Pichai.
“When you look at the fact that people are consuming a lot of goods and services as part of their experience [on] YouTube, how can we create better commerce experiences also is a big opportunity for us,” Pichai said.
Fortune also mentions that despite the numbers looking impressive on-page, it revealed that Alphabet ad business is slowing down.
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