Google’s parent company Alphabet today announced its earnings for the fourth quarter of 2020 ending December 31, 2020. The company reported revenues of $56.898 billion, a 23% increase from the same quarter last year. The company made $182.527 billion in revenue for fiscal year 2020, up form $161,857 billion in 2019.
Unsurprisingly, the largest chunk of its quarterly revenues came from Google, which accounted for $52.873 billion, increasing by a little more than 22% over the same quarter last year. This includes Google Search, YouTube advertising, and other services. Google cloud too saw strong growth, growing to $3.831B in Q4, up from $2.614B last quarter.
Our strong fourth quarter performance, with revenues of $56.9 billion, was driven by Search and YouTube, as consumer and business activity recovered from earlier in the year”, said Ruth Porat, CFO of Google and Alphabet in a prepared statement. “Google Cloud revenues were $13.1 billion for 2020, with significant ongoing momentum, and we remain focused on delivering value across the growth opportunities we see.”
As for Alphabet’s other revenue streams, the “Other bets” section brought in $196 million, up from $172 million in the same quarter last year. However, the “Hedging gains” business line accounted for a $2 million loss, dropping by close to $93 million over the same quarter last year.
Overall operating income for Alphabet stood at $15.651 billion, up from $9.266 billion last year. The total net income for the firm was $15.227 billion, for $22.30 diluted earnings per share.
Sudar Pichai, CEO of Google and Alphabet, said:
“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 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 for fiscal year figures, the company saw close to 46% growth in its cloud business, reporting $13.059B in revenue for 2020. Google services brought in $168.635B. The Other bets business almost flatlined, losing $2 million, whereas the “Hedging gains” line item lost $279 million, bringing in $176 million in 2020. Operating income stood at $41.224B for the year.