Alphabet, parent company of Google, have dropped their latest earning release. Yes, they are still making a ton of money, but more interesting is the fact they have split out YouTube ad revenue in their earnings call for the first time.
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Alphabet has hit record revenue numbers again, raking in a cool $46.1 billion in revenue in the latest quarter (which is 18 percent up on the same quarter in the prior year).
In 2019, YouTube ad revenue hit $15.2 billion, which is almost 90 percent higher than it was in the same period in 2017 and 35% higher than in 2018.
Its cloud businesses are also becoming an important part of the overall picture. It had annual revenues of $8.9 billion, which is a 53 percent increase over the prior year.
Of course, advertising still makes up the lion’s share of total revenues. It totalled $37.9 billion in the latest quarter (82% of total revenues). Hardware and app store sales increased by 10 percent this year, to $5.3 billion.
There was a decrease in hardware sales, though no further information was shared about which products were affected. Presumably the Pixel 4 didn’t sell very well, as it was a real disappointment to many in the industry. They are pushing the Google Home and Home Mini aggressively, but didn’t share any numbers on the various products.
Meanwhile, Alphabet reported that its longer term efforts – like autonomous vehicle unit Waymo and healthcare company Verily, among others – posted revenues of $659 million for the full year (up 11 percent from the previous year), on losses of $4.8 billion for the year, up from prior operating losses of $3.4 billion in 2018. Although the “Other Bets” have consistently lost money, investors see them as key to the company’s future beyond advertising and cloud.
