Alphabet, the parent company of Google, set a new annual revenue record in 2021. The state of affairs of the technology giant was not affected by either the coronavirus pandemic or current problems with supply chains. At the end of 2021, the company’s revenue grew by 41% compared to 2020 and amounted to $257 billion. Alphabet reported $75.3 billion in revenue in the fourth quarter of 2021, representing 32% year-on-year growth.
“Q4 saw ongoing strong growth in our advertising business, which helped millions of businesses thrive and find new customers, a quarterly sales record for our Pixel phones despite supply constraints, and our Cloud business continuing to grow strongly,” Alphabet and Google CEO Sundar Pichai said in a statement accompanying the earnings release. The company also announced a 20-for-1 stock split that will take place in July.
The corporation generally does not disclose revenue from categories such as Pixel or Android smartphones, including them in the Other Google subcategory of the Google Services category, which includes YouTube and Google Search, the company’s top-grossing products. The Google Other segment brought in $8.16 billion for the company in the fourth quarter of last year.
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Alphabet’s annual revenue topped the $200 billion mark for the first time
Google’s ad revenue in the fourth quarter of 2021 was $61.24 billion. This is despite the fact that Meta, Twitter, Snapchat and YouTube lost almost $10 billion in ad revenue due to Apple’s new iOS privacy policy in the second half of the year, according to the Financial Times. Google collects data for ad targeting using search traffic and YouTube, so the change in iOS did not affect the state of the company much. In the fourth quarter alone, it generated $8.63 billion in YouTube ad revenue.
Alphabet reported an operating loss of $890 million in the cloud segment on revenue of $5.54 billion. The Other Bets segment, which includes autonomous car company Waymo and Verily’s life sciences division, brought in $181 million in revenue.
Last year, Alphabet’s revenue topped $200 billion for the first time, nearly three times the company’s 2016 revenue.
Ruth Porat, CFO of Alphabet and Google, said: “Our fourth quarter revenues of $75 billion; up 32% year over year, reflected broad-based strength in advertiser spend and strong consumer online activity; as well as substantial ongoing revenue growth from Google Cloud. Our investments have helped us drive this growth by delivering the services that people; our partners and businesses need, and we continue to invest in long-term opportunities.”
