Google’s advertising business keeps Alphabet Inc (NASDAQ:GOOGL), its parent company, posting record numbers. Financial results disclosed Tuesday informed of $75 billion in revenue for the fourth quarter of 2021, while the company announced a 20-for-1 stock split.
Q4 2021 hedge fund letters, conferences and more
As reported by CNBC, compared to 2020, the revenue of the internet company has grown by 41%, going from $182,527 million to $257,637 million last year.
This good behavior has allowed Google to exceed Wall Street forecasts, thanks again to the data its advertising business has produced. In the last quarter of the year, Google invoiced $75,325 million —the highest of all its quarters in 2021.
Around 80% of everything Google billed in that last quarter corresponds to its advertising division —Google searches, YouTube ads, and Google Network— as its advertising turnover exceeded $61,239 million.
These are the main figures from Alphabet’s earnings presentation: a 2021 revenue of $257,637 million (+41%); 4Q 2021 revenue of $75,325 million (+32%); Q4 2021 advertising revenue of $61,239 million (+32%); Net profit 2021 of $76,033 million (+89%), and Q4 2021 net profit of $20.642 million (+35%).
Recipe For Success
In the presentation, CEO Sundar Pichai emphasized how in the fourth quarter there has been a strong and continued growth in the advertising business, which helped millions of companies to grow and find new customers.
He also highlighted the “record quarterly Pixel phone sales, despite supply constraints.”
Regarding the cloud division, Pichai asserted that “it continues to grow strongly.” The company’s financial director, Ruth Porat, highlights the revenue growth of 32% in the last quarter, which “reflects the general strength of advertiser spending and the strong online activity of consumers, as well as the significant growth in revenue from Google Cloud.”
CNBC also informed, “Alphabet’s backlog increased more than 70% to $51 billion, primarily consisting of the cloud business, Pichai said on the earnings call. He added that the company saw 65% year-over-year growth in the number of cloud deals worth over $1 billion.”
Alphabet is part of the Entrepreneur Index, which tracks 60 of the largest publicly traded companies managed by their founders or their founders’ families.