Google parent company Alphabet reported its fourth-quarter 2019 earnings on Monday. The big news is some long hoped-for financial results based on its search, video business, and cloud business.
Alphabet reported that YouTube brought in more than $15.1 billion in ad revenue last year -- up 35.8% from 2018. Google Cloud posted $8.9 billion in sales, up 53% from the prior year. Google's search business rose 15% -- reaching $98.1 billion in revenue in 2019.
The report not only marks the first earnings update since Alphabet named Sundar Pichai to the position of CEO, but the first time the company reported its YouTube and Cloud businesses and combined revenue from search advertising.
“Our investments in deep computer science, including artificial intelligence, ambient computing and cloud computing, provide a strong base for continued growth and new opportunities across Alphabet,” stated Sundar Pichai, CEO of Alphabet and Google.
Overall, Alphabet reported fourth-quarter 2019 revenue of $46.07 billion, and for the year the company revenue hit $162 billion -- up 18% year-over-year.
Google Properties generated $31.9 billion for the quarter, Google Network Members' Properties generated $6.03 billion, Google Other brought in $5.3 billion, and Other Bets generated about $172 million.
Analysts seemed pleased that the company is now disclosing specific segments such as YouTube and cloud services. “At first glance, no change to our positive long-term thesis, although we expect shares to trade modestly lower with revenues and EPS (ex-one time benefits) falling short of consensus,” wrote Colin Sebastian, analyst at Baird Equity Research, in a note published Monday.