Alphabet released its fourth quarter outcomes at present and, for the first time, broke down how a lot cash YouTube earns.
According to the report, YouTube generated $15 billion in ad revenue final year, almost doubling what it made simply two years in the past. As The Verge factors out, that determine “contributed roughly 10 percent to all Google revenue. Those figures make YouTube’s ad business about one fifth the size of Facebook’s, and more than multiple times bigger than all of Amazon-claimed Twitch.”
In addition to the ad revenue, The Verge stories that Google additionally has over 20 million subscribers to YouTube Premium and Music Premium, in addition to more than 2 million YouTube TV subscribers. The revenue from these companies is grouped below the “other” class, which accounted for $5.three billion in This fall. The company additionally disclosed its Google Cloud earnings for the first time, with that division bringing in $8.9 billion in 2019.
While Google beat Wall Street’s estimates on profit, its revenue got here in decrease than anticipated. That may very well be the rationale the company was immediately prepared to reveal YouTube and Google Cloud’s monetary contribution, in an effort to indicate the company is rising revenue streams exterior its core search business.
“In 2019 we again conveyed solid revenue development, with revenues of $162 billion, up 18% year over year and up 20% on a consistent cash premise,” mentioned Ruth Porat, Chief Financial Officer of Alphabet and Google. “To give further knowledge into our business and the opportunities ahead, we’re currently uncovering our revenue on a more granular premise, including for Search, YouTube ads and Cloud.”