Google parent Alphabet increases cloud revenue substantially

Google parent Alphabet increases cloud revenue substantially

Alphabet, the parent company of Google, has posted hefty revenue from the cloud and advertising. This is evident from the quarterly figures for the fourth fiscal quarter of 2021.

Alphabet posted revenue of 66.7 billion euros ($75.3 billion) in the fourth fiscal quarter of 2021 — an increase of 32 percent compared to the same period in the year before. Profits grew 36 percent to a total of $20.4 billion.

Ad growth continues

Google’s parent company is still largely dependent on the ads it sells through the Google search engine and services such as YouTube. Revenue from this segment totalled $61.2 billion, 33 percent more than the year before. Search ad and YouTube revenue rose in particular.

Cloud service turnover

Google Cloud revenue increased as well. This segment sored a revenue of 5.54 billion dollars in the fourth quarter, which sums up to a 45 percent increase in one year. Nevertheless, the tech giant’s public cloud environment continues to generate losses. Google reduced its losses from $1.2 billion to $890 million.

According to Alphabet CEO Sundar Pichai, Google Cloud customers are spending more and more. Purchases on the Google Cloud Marketplace increased sixfold compared to 2020. Google Cloud also released more than 2,000 new cloud products and beta releases in the past year. Especially in the areas of data analytics, AI, multi-cloud infrastructure, security and Google Workspace. Customer spending on infrastructure services grew significantly.

Annual figures 2021

In addition to the quarterly figures, Alphabet gave the first indication of 2021’s annual stats. In the past year, Alphabet managed to achieve a total turnover of $257.637 billion (which has yet to be approved). This represents a growth of 42 percent compared to 2020.