Google advertisement sales increased approximately 33 percent over the years to USD61.2 billion between October and December. This contributed to a better quarter that exceeded expectations for the parent company, Alphabet, as reported by CNN.
On Tuesday, Google reported that their quarterly profit stood at USD20.6 billion or USD30.69 per share, along with a revenue that stood at USD75.3 billion. Alphabet stock jumped approximately eight percent during after-hours trading on Tuesday.
The advertisement sales increase came after Google experienced rapid growth for a few quarters, as a result of people spending more and more time online due to the COVID-19 pandemic and quarantine measures.
“It is clear that many advertisers have switched their investment to search and display ads online and this isn’t a short-term trend, it’s a new reality.”– Global Chief Digital Officer at Mindshare Worldwide, Tom Johnson
Besides Alphabet’s advertisement business, other units also performed well such as the company’s Pixel smartphone sales which hit an all-time-high during the holiday season, despite supply limitations due to a global shortage in semiconductors, according to Alphabet’s CEO, Sundar Pichai
Google’s cloud business’s revenue growth stood at 45 percent, even though it lost USD890 million, as reported by CNN.
Alphabet’s total annual sales stood at USD257.6 billion thanks to a great last quarter, which is a record- breaking number as it is the first time that Google exceeded the USD200 billion mark.
Google’s traffic acquisition costs increased by approximately three billion during quarter four, which Google described as a “concerning” trend “that Alphabet will not want to see continuing.”
Google’s “Other Bets”, including self-driving car efforts conducted under Waymo, reported a decline in revenue that stood at USD181 million and a loss of approximately USD1.8 billion.
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