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Summary
- Alphabet, the parent company which owns Google and its subsidiaries, posted a 23 per cent year-over-year (YoY) increase in its record revenue of US$ 56.9 billion in the fourth quarter of fiscal 2020.
- Its full-year revenue for fiscal 2020 stood at US$ 182.5 billion, up from US$ 161.9 in 2019.
- Its stocks expanded by about seven per cent in the extended trading hours on Tuesday.
Buoyed on the surge in pandemic-stoked online shopping and year-end holiday spending, Alphabet Inc (NASDAQ: GOOG, GOOG:US) reported record sales in its Q4 2020 financials released on Tuesday, February 2.
Alphabet, the parent company which owns Google and its subsidiaries, posted a 23 per cent year-over-year (YoY) increase in its record revenue of US$ 56.9 billion in the fourth quarter ending 31 December 2020. This number was substantially up from what market analysts had predicted for Alphabet, which was reportedly somewhere around US$ 52.7 billion.
The company’s 'strong fourth quarter performance' was motored by the business segments of Google Search and YouTube, pointed CFO Ruth Porat.
Alphabet’s full-year revenue for fiscal 2020 stood at US$ 182.5 billion, up from US$ 161.9 in 2019.
Alphabet Q4 2020 & Fiscal 2020 Financial Results: Key Highlights
Alphabet’s global ad spending, which had suffered quite a setback earlier in 2020 amid the pandemic, reflected a continuing rebounded in the latest financial report. Its total income from operations for Q4 2020 rose to US$ 15.7 billion, beating analysts’ expectation of US$ 11.9 billion.
While Google Services posted a revenue of US$ 52.9 million in the latest quarter, its Cloud division saw a revenue of US$ 3.83 billion.
Alphabet CEO Sundar Pichai noted that Google’s cloud segment signed deals worth at least US$ 250 million last year, which was thrice the number of contracts in 2019.
©Kalkine Group 2021
Most recently, Ford Motor Company announced that it will be using Google’s cloud services for its in-car features and data streaming.
Alphabet’s cash position, which stood at US$ 20.1 billion at the start of October, amounted to US$ 26.5 billion by the end of December.
Stocks of Alphabet Inc, which jumped about one per cent to close at US$ 1,927.5 on Tuesday, expanded about seven per cent in after-hours trading. Alphabet shares gained about 18 per cent in the last three months and nearly 30 per cent over the last six months.
Its revenue and sales growth aside, Google continues to be face with difficulties in the wake of antitrust lawsuits and accususations of abusing its massive online presence to competition.
