Sundar Pichai-led Alphabet, the parent company of Google, has for the first time revealed numbers for YouTube ads and its Cloud business as it registered $46.08 billion in overall sales for its fourth quarter of 2019, primarily riding on its Search ad business.
YouTube logged $15 billion in annual ad revenue, the company disclosed for the first time — a 35.8 per cent growth over the prior year. For Q4 2019, YouTube reported revenue of $4.17 billion.
Google Cloud registered annual revenue of $8.9 billion — up 53 per cent from the prior year, and a $10 billion revenue run rate for 2019. For Q4 2019, Google’s cloud unit reported $2.6 billion in revenue.
“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, Chief Executive Officer of Google and its parent company Alphabet.
This is the first quarter results after Pichai took over as both Alphabet and Google CEO as co-founders Larry Page and Sergey Brin stepped down in December.
“I am 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,” Pichai announced.
The lion’s share of Alphabet’s revenue — $37.93 billion for the quarter — went to advertising.
“In 2019, we again delivered strong revenue growth, with revenues of $162 billion, up 18 per cent year over year and up 20 per cent on a constant currency basis,” said Ruth Porat, Chief Financial Officer of Alphabet and Google.
“To provide further insight into our business and the opportunities ahead, we’re now disclosing our revenue on a more granular basis, including for Search, YouTube ads and Cloud,” Porat mentioned.
Alphabet’s autonomous vehicle unit Waymo and healthcare company Verily posted revenues of $659 million for 2019.
Alphabet shares were down nearly five per cent in after-hours trading.