For the first time in 15 years, Google has revealed YouTube’s revenue: $ 15 billion a year and 20 million subscribers

In the fourth-quarter earnings report released by Alphabet today, Google revealed for the first time YouTube’s revenue since it acquired the service. Accordingly, YouTube has brought in $ 5 billion in advertising revenue for the company in the past 3 months.

It’s also the first earnings report since Sundar Pichai took over as CEO at Alphabet after Google founders Larry Page and Sergey Brin withdrew from day-to-day work.

Alphabet’s quarterly earnings report for the first time shows how YouTube generated revenue for the company after 15 years, acquired by Google for $ 1.65 billion in 2006. And the figures show the top of Google’s investment in YouTube in the past is paying off.

For the year, YouTube earned about $ 15 billion last year and contributes nearly 10% of Google’s total revenue. These figures show that YouTube’s advertising revenue is currently about one fifth that of Facebook and 6 times more than Amazon’s Twitch service.

In addition, Google also said that YouTube currently has more than 20 million subscribers for both the Premium service package (YouTube without advertising) and Music Premium, as well as more than 2 million other subscribers for paid TV services. mine.

Alphabet said sales of these products, along with hardware devices like Pixel phones and Google Home smart speakers, were included in the “Other Products” category and generated $ 5.3 billion in revenue. last quarter. This makes it difficult to determine the exact contribution of each product.

On top of that, Alphabet earned $ 46 billion in revenue last quarter (ending December 31, 2019), up 17% over the same period in 2018. Profit for the quarter reached $ 10.7 billion. Google’s search engine remained a key part of Alphabet’s entire empire, bringing in $ 27.2 billion in the last quarter.

In addition to disclosing YouTube’s advertising revenue, Google also announced the financial performance of its cloud business. According to the report, Google Cloud generated $ 2.6 billion in revenue last quarter.

While Google’s profits are well above Wall Street’s forecasts, their revenue is not up to expectations. Perhaps this is one of the reasons Google first announced revenue of YouTube and Google Cloud after being hidden for many years. It shows that the company is no longer so dependent on Google Search as it used to be when these businesses were growing fast.

For the whole of 2019, Google Search brought $ 98.1 billion in revenue, up only 15% compared to 2018. While YouTube brought $ 15.15 billion in 2019, an increase of 36.5% compared to 2018. $ 11.2 billion in 2018. Despite that, investors showed Alphabet’s concern about revenue growth not as expected as the company’s stock plunged 4% in subsequent trading hours. .

Refer to The Verge