Alphabet, the parent company of Google, reported $182.5 billion in revenue for fiscal year 2020, up 12.9% from 2019, in which they reported $161.7 billion in revenue. They made $40.3 billion in net income, after paying $141.3 billion in total expenses and provisioning $7.8 billion in income taxes.
Of the $182.5 billion Alphabet made in revenue, $168.6 billion came from advertising, with $104 billion coming from Google Search advertising alone. An additional $19.8 billion came from YouTube advertising, and another $23 billion from Google’s ad network. All-in-all, advertising comprised 80.5% of Alphabet’s revenue for the year.
Google also made $21.7 billion in revenue from other services, such as Gmail and Google Drive, while Google Cloud made $13 billion for the year. Of the $182.5 billion Alphabet made in 2020, $181.6 billion came from Google itself. That’s 99.5% of the total: when it comes to revenue, Alphabet pretty much is Google.
Alphabet also made $657 million on “Other bets”, which include companies like Verily, a life sciences company. That money would make a pretty big difference in my bank account, but it’s a drop in the bucket for Alphabet – especially since these “Other bets” reported a net loss of $4.5 billion last year. Lately, Alphabet has been pruning these “Other bets”, either bringing them under Google or killing them off entirely.
Of Alphabet’s $141.3 billion in expenses for 2020, $84.7 billion were marked as cost of revenues. Additionally, $27.6 billion was spent on research and development, $17.9 billion on sales and marketing, and $11.1 billion on general and administrative expenses. After provisioning $7.8 billion for income taxes, Alphabet made a net income of $40.3 billion in 2020.
You can read more in Alphabet’s full earnings report for Q4 2020.