What is Google's annual revenue

Thanks to YouTube: Google parent Alphabet with almost 43 percent more profit

Advertising revenues from search and YouTube are the major growth drivers of Google's parent company Alphabet. But the Google Cloud division is also showing strong growth: In this division alone, sales of 13.1 billion US dollars were posted in the 2020 fiscal year. Overall, Alphabet's 2020 revenue was around $ 183 billion.

"Consumer: indoor and business activities have recovered"

Unsurprisingly, the fourth quarter of Alphabet and Google was particularly strong compared to the previous quarters of the global crisis year 2020. During this time, however, the large tech companies usually benefit from the even higher frequency of online services, and very often from Google. Alphabet and Google's CEO Sundar Pichai explained on the occasion of the published quarterly and fiscal year figures:

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.

The $ 56.9 billion in Q4 sales for Alphabet are based in particular on the ever increasing relevance of YouTube and Search Ads. That also confirms Ruth Porat, CFO of Google and Alphabet:

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. 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.

The company now reports the Google numbers in three segments:

  1. Google Services: $ 52.9 billion in sales in Q4 2020
  2. Google Cloud: $ 3.8 billion in sales in Q4 2020
  3. Other bets: $ 196 million in sales in Q4 2020

In the area of ​​Google Services, sales of 31.9 billion US dollars were generated with the Google Search & other division, and 6.9 billion US dollars with YouTube Ads. Other bets also include the Google subsidiaries Waymo (which develops autonomous vehicles) and Wing (which develops delivery drones). Although sales in this YoY division rose from $ 172 million to $ 196 million, the losses here are still significant. A loss of 1.14 billion US dollars was recorded; but it was at least significantly lower than a year earlier (at that time it was still two billion US dollars).

The profit increases by almost half

How big the growth actually is at Alphabet can be seen from the numerous billions of dollars. But it becomes even clearer if one takes a look at the development of profit. This was an astonishing $ 10.7 billion in the fourth quarter of 2019 and $ 15.2 billion a year later. Here, if you take a closer look at the numbers, growth is almost 43 percent YoY. And also with quarterly sales growth of over 23 percent was generated.

This growth is only likely to continue in 2021. Because the advertising revenue from search and on YouTube are the backbone of profit - whereby the cloud area is likely to gain more and more importance. While Google's search is continuously being optimized and cementing its status as the absolute world market leader in this area, YouTube is getting more and more users: inside (the company itself speaks of over two billion monthly active users), the duration of use increases in times of corona. In addition, the video platform would like to develop into a shopping alternative - which should only offer advertisers more incentive for the placement of campaigns there.

You can find the entire quarterly report with all the numbers on Alphabet and Google in the company's document.