Alphabet sees a fourteen percent increase in revenue in the third of 2020 as compared to the same quarter of 2019

The year 2020 began with a dreadful pandemic, and now we are in the fourth quarter of this year. Tech companies saw a lot of fluctuations in business, user growth, and revenue. While most of the businesses had to shut down due to the pandemic, these tech giants kept working because of the increased demand for their services due to global lockdowns owing to the pandemic. If the second quarter of this year proved to be really beneficial for big tech companies and apps because of an influx of daily active users on their platforms, the third quarter continued to prove to be really ‘blessed’ for these apps too.

Google and YouTube’s parent company Alphabet inc. has recently shared its earnings in the third quarter of 2020. The reports suggest that Alphabet has seen a rise of 14% YoY in terms of revenue in the Q3 of 2020 as compared to the Q3 of 2019. Last year, the revenue was somewhere around $40.5 billion, but this time, the total revenue is $46.2 billion.

The operating and net income in this quarter remained the same at $11.2 billion, while in Q2 of 2020, the net income was $6.96 billion.

Sundar Pichai, the CEO of Alphabet and Google is very happy with these reports, and rightly so! He gives the credit to the new ventures and arenas that Google and Alphabet have been delving into, including the ventures revolving around Artificial Intelligence and other technologies.

Also, this total revenue of $46.2 billion is reflective of user growth and ad spends from Google Search and YouTube. Google Cloud and Google Play have also played a major role in boosting this revenue.

The Chief Financial Officer of Alphabet and Google, Ruth Porat says that this major boost in revenue happened for the company because it made the right choices for the right investments at the right time.

Alphabet provided a general breakup and as per the reports, the ad revenue from YouTube has garnered around $5.04 billion in the third quarter of 2020, and Google Cloud added another $3.44 billion to the total revenue.

Revenue generated from hardware, non-advertising YouTube features and Google Play Store accounts for up to $5.48 billion in total, which has shown progressive growth in comparison to the same period last year when the revenue from these sources accounted for up to 4.05 billion.

On the other hand, there was a slight dip from Verily and Fiber. In Q2 of 2020, Verily and Fiber generated $148 million in revenue. In Q3 of 2020, this revenue increased up to $178 million, however, it was $941 million in the Q3 of 2019. So, this means that Alphabet lost around $1.10 billion of revenue this year from Verily and Fiber.

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