The video platform continues to gain thickness in the Google galaxy. It has never generated so much income, like the Mountain View giant.
Alphabet, the parent company of Google, released its quarterly and annual financial results on Tuesday, February 2. These report record revenues, with a turnover of 182,5 billion dollars (152 billion euros) for the whole of 2020 (+ 23,5% over one year), and quarterly revenues of $ 56,9 billion over the last three months of the fiscal year (+ 12,77% compared to 2019). Advertisements, YouTube and Cloud were some of the driving forces of the Californian giant.
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Google profits soar, YouTube too
With very good results for a year 2020 hit by the pandemic, Alphabet has much to be congratulated on. Group and Google Chairman and CEO Sundar Pichai acknowledged that “our excellent results this quarter reflect the usefulness of our products and services to consumers and businesses, as well as the accelerated transition to online and cloud services. ". With a pharaonic fourth quarter 2020, symbolized by a surge in net profit of more than 42%, to $ 15,2 billion (against $ 10,7 billion the previous year), the company is not to be pitied .
If the phenomenon is not as massive as on the side of Facebook, advertising remains the main source of income for Google. With alluring amounts. In the fourth quarter of 2020, the Mountain View firm still collected $ 46,2 billion in advertising revenue, which corresponds to 87,4% of revenue generated by Google services, and 81,2% of Alphabet group revenues.
Of this Google advertising revenue for the last quarter of 2020, $ 7 billion is to be credited to YouTube. The video-sharing platform, which multiplies the views and mechanically the advertisements, made a big profit for Google, which saw its revenues jump by 46% compared to Q4 2019. “Our strong performance in the fourth quarter (…) was drawn on through research and YouTube, while consumer and business activity has recovered from the start of the year, ”confirmed Google and Alphabet CFO Ruth Porat.
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The Cloud, powered by Google Workspace, in great shape
Like YouTube, the cloud continues to gain weight. The Google Cloud entity generated $ 13,1 billion in revenue in 2020, against $ 8,9 billion in 2019. This very significant growth (46,4%) is largely driven by its Cloud platform and collaborative tools from Google Workspace (Gmail, Drive, Google Calendar, Slides, Formes, Sheets, Docs, etc.), formerly G Suite.
Revenues linked to the Google search engine climbed from $ 27,2 billion in 2019 to $ 31,9 billion in 2020, a more "slight" increase than other benchmarks, to the tune of 17,3% .
Finally, it should be noted that Google today enjoys a financial windfall of the most substantial. Its cash flow reached $ 26,5 billion as of December 31, 2020. At the end of 2019, it was "only" $ 18,5 billion.
Source: Alphabet results
