For the first time, Google’s parent company Alphabet gave its investors a look at the revenue generated by YouTube and Google Cloud, two of its key businesses. According to the report, YouTube generated $15 billion in revenue in 2019, up from $11 billion in 2018. Google Cloud, on the other hand, generated $8.9 billion for the year, 53% higher than $5.8 million generated in 2018.
As far as Alphabet’s earnings are concerned, the company’s revenue soared from $39.3 billion in 2018 to $46.1 billion in 2019. On top of this, the firm’s net income also expanded from $8.9 billion to $10.7 billion over the same time frame.
This is the first earnings report since Sundar Pichai took over as CEO of the company. However, the figures displayed mixed results when compared to the expectations. The company beat analyst estimates on profit but missed them in revenue. Hence, Alphabet’s shares are off around 4% in after-hours trading, following its disclosure.
According to Sundar 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.
Analysts expect Alphabet to focus on YouTube and Google Cloud more and put less emphasis on its star product Google Search since it has been lumbering along for a long time now.