Alphabet earned nearly double in 2021 due to ad revenue boost
Internet giant Alphabet, parent company of Google, increased its profit in 2021 almost twice as much as a year ago thanks to the strong boost in advertising revenue.
In total, its net profit in the last fiscal year was $76 billion, compared to $40.2 billion of earnings obtained a year earlier.
Alphabet’s strong results encouraged investors on Wall Street, with the firm’s shares soaring 8.52% to $2,986 a share in after-hours electronic trading on New York markets.
The company of the most used online search engine in the world had a revenue of $257.6 billion last year, the vast majority from advertising, well above the $182.3 registered between January and December 2020. The growth in turnover in the last quarter of 2021 -which coincided with the Christmas sales campaign- was relevant and stood at 32% year-on-year. The figure exceeded sales expectations and marked the third consecutive quarter with record sales.
Alphabet’s largest source of income is the sale of advertising space on its various online platforms, which accounts for more than 80% of total sales. In turn, within the advertising segment, the income derived from ads through Google is the highest ($43.3 billion in the last quarter). Between October and December of last year, YouTube billed $8.6 billion in advertising, compared to $6.8 billion in the last quarter of 2020.
Apart from advertising, the company also raises money through its cloud computing platform, Google Cloud, which in the past three months contributed $5,541 billion to the coffers of the company. By markets, the United States is Alphabet’s main source of income (46% of the total), followed by Europe, the Middle East and Africa.
For their part, Alphabet investors pocketed $113.88 per share over the past twelve months, compared to $59.15 a year ago. The firm based in Mountain View (California, USA) saw revenue rise in all its business segments, and in parallel increased investment with an increase in long-term debt, which went from $13.9 billion at the end of last year to the current $14.8 billion.