Alphabet Inc. Earnings Report (Q4 2021)

Alphabet has reported its Q4 2021 results, which shows double-digit growth in most areas.
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Alphabet has released its Q4 2021 earnings report which covers October to December (2021). Overall the company has posted some strong results with double figure growth in revenue.

Compared to Q4 last year, revenue has increased 32% from $56.89 billion to $75.32 billion. For the full year ending on the 31st of December 2021 Alphabet reported $257.6 billion in revenue which is a 41% increase over the previous year.

Operating income also saw growth, increasing to $21.88 billion from $15.65 billion in Q4 2020. Operating margin increased by only 1% (from 28% to 29%) from a year ago. Net income reported for Q4 2021 came in at $20.6 billion which up from $15.22 in Q4 2020.

Sundar Pichai, CEO of Alphabet and Google, said in the report:

“Our deep investment in AI technologies continues to drive extraordinary and helpful experiences for people and businesses, across our most important products. 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.”

  • Google Search & other has continued to grow, with $43.3 billion in revenue compared to $31.9 billion in Q4 2020.
  • YouTube ads also saw an increase in revenue from $6.88 billion in Q4 2020 to $8.63 billion.
  • Google advertising had a revenue of $61.23 billion compared to $46.19 billion in the previous year.
  • Google Cloud reported a revenue of $5.54 billion which is an increase from $3.83 billion in 2020.
  • Alphabet’s ‘Other bets’ had revenues of $181 million which is down from $196 million a year ago.

Google Cloud did beat expectations with a significant increase in revenue to $5.54 billion, however Google Cloud is still reporting a loss this quarter of $890 million, which is an improvement on the loss reported in Q4 2020 of $1.24 billion. Google Cloud still sits in third place behind Amazon’s AWS and Microsoft’s Azure.

Overall Alphabet mainly delivers its operating income from Google Services such as advertising since Google Cloud remains at a loss. Alphabet’s well known ‘Other Bets’ such as Waymo and Calico also reported a loss of $1.45 billion. The company reported a total income from operations of $15.65 billion.

The company has also announced a 20-for-one stock split, meaning each shareholder will receive nineteen extra shares per share owned.

Alphabet stock has increased by around 7.89% to $2,970.00 in after-hours trading following the earnings report release. However, stock is down around 5.07% over the past month.

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