Google’s parent company, Alphabet has released its earnings report for the fourth quarter of 2019, including the fiscal year of 2019. They posted a growth of 17% in Q4 compared to last year with approx $46 billion in revenue. For the entire year, Alphabet reported $162 billion in total revenue, up 18% year over year and up 20% on a constant currency basis.
This year was the first time Alphabet disclosed its YouTube Advertisement revenue. The company had historically been very secretive with this number for unknown reasons. Now, with this report, we know that YouTube ads alone generated a revenue of a whopping ~$15 billion for the year 2019.
They record a net income of approximately $10.6 billion for Q4 2019, calculating to a growth of 19.25% YoY. For the year 2019, net income was recorded at $34.3 billion which a YoY increase of 11.73%. Its diluted EPS grew to $15.35 in Q4 2019 from $12.77 in Q3 2018. The number of employees in 2019 was reported as 118,899, up from 98,771 in 2018.
Alphabet held a livestream to further breakdown the numbers from the Q3 2019 release report with investors and members of the press.
Commenting on the earnings report for Q4 2019, Sundar Pichai, Chief Executive Officer of Alphabet and Google said:
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. I’m really pleased with our continued progress in Search and in building two of our newer growth areas — YouTube, already at $15 billion in annual ad revenue, and Cloud, which is now on a $10 billion revenue run rate.
Commenting on the yearly growth and earnings, Ruth Porat, Chief Financial Officer of Alphabet and Google said:
In 2019 we again delivered strong revenue growth, with revenues of $162 billion, up 18% year over year and up 20% on a constant currency basis. To provide further insight into our business and the opportunities ahead, we’re now disclosing our revenue on a more granular basis, including for Search, YouTube ads and Cloud.