Google’s parent company Alphabet has released its earnings report for both the fourth quarter of the year, as well as for the entire year. While the reports generally created mixed feelings, it was the company’s decision to disclose YouTube and Cloud earnings for the first time that caught the limelight.
The company’s cloud business includes G Suite, (enterprise version of its productivity tools such as Gmail or Google Docs) and the cloud infrastructure. Jointly, these offerings created $2.6 billion in revenue, which equals to a run rate of $10bn, according to TechCrunch. Last year, it has had $1.71bn in revenue, with its run rate growing by 53.6 per cent in a year.
Alphabet also released YouTube’s earnings for the first time, showing its advertising revenue was $15.1 billion, up from $11.2 billion last year.
All in all, Alphabet’s revenue grew from $39.3 billion in 2018 to $46.1 billion in 2019. At the same time, its net income also grew, from $8.9 billion to $10.7 billion.
While the firm beat analysts’ expectations in terms of profit, it was short off the mark in terms of revenue.
In the cloud market, one of the hottest new markets nowadays, Alphabet is competing with Amazon, Microsoft, Oracle and IBM. Jointly, Amazon and Microsoft hold two thirds of the entire market.