Alphabet, the parent company to Google, Android and YouTube, has overnight released its latest earnings release which has shown something we aren’t surprised about. It has earned a $46.1 billion profit which is an 18% increase in the last 18 months. However the most interesting part is that Alphabet have finally broke out YouTube advertising revenues and have shown how important the advertising revenue is important to the video site.
During 2019, the advertising revenues were $15.15 billion, which represented whopping 86% growth since 2017. Add to that Google’s own search business which grew by 40 percent to $98.1 billion over the last two years alone. Of course Google’s search business is far more mature than YouTube’s business but it goes to show how important YouTube and this revenue increase has become for the company.
Alphabet’s “other revenue” category which represents its other projects like Google’s hardware division have totalled $5.3 billion. This result is up 10% over the previous year and shows that their hardware business is making improvements every year.
This same category though also includes things like the Play Store and YouTube “non-advertising revenues” – which more than likely includes things like the YouTube Premium subscription service. This category alone has seen 56% growth over the last two years and shows that it is out performing Google’s traditional core ad search business.
We will be waiting to see if there is any further news on how Alphabet’s other business and any news on any possible upcoming devices for example the Pixel 4a or others, so stay tuned.