Alphabet, the parent company of Google, reported $257.6 billion in revenue for fiscal year 2021, up 41% from 2020, in which they reported $182.5 billion in revenue. They made $76.0 billion in net income, after paying $178.9 billion in total expenses and provisioning $14.7 billion for income taxes.
Of the $257.6 billion Alphabet made in revenue, $209 billion came from advertising, with $149 billion coming from Google Search advertising alone. An additional $28.8 billion came from YouTube advertising, and another $31.7 billion from Google’s ad network. All-in-all, advertising comprised 80.5% of Alphabet’s revenue for the year.
Google also made $28.1 billion in revenue from other services, such as Gmail and Google Drive, while Google Cloud made $19.1 billion for the year. Of the $257.6 billion Alphabet made in 2021, $256.6 billion came from Google itself. That’s 99.6% of the total: when it comes to revenue, Alphabet pretty much is Google.
Alphabet also made roughly $700 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 $5 billion last year. Lately, Alphabet has been pruning these “Other bets”, either bringing them under Google or sunsetting them entirely.
Of Alphabet’s $178.9 billion in expenses for 2021, $110.9 billion were marked as cost of revenues. Additionally, $31.6 billion was spent on research and development, $22.9 billion on sales and marketing, and $13.5 billion on general and administrative expenses. After provisioning $14.7 billion for income taxes, Alphabet made a net income of $76.0 billion in 2021.
You can read more in Alphabet’s full earnings report for Q4 2021.