When the pandemic hit the world last year, Google was one of the few tech giants to lose revenue. But soon the company recovered. Alphabet, Google’s parent company, showed revenue in the first quarter of the year in its newly released Q1 2021 earnings statement.
Alphabet earned $56.9 billion in revenue in the fourth quarter of 2020, down from $55.3 billion in 2021. However, when looking at the profit ratio, $15.2 billion in revenue was generated in the previous quarter; In the three months, it made $17.9 billion. This suggests that Google has set a new record.
Advertisers can’t give up YouTube
On the back of Alphabet’s great success, the Google search engine alone has made a massive contribution of $31.8 billion. But Google Cloud is considered an important value for the company, unfortunately, continues to lose money. The cloud service, which reported a $5.6 billion loss last year, rose 45.7 percent but failed to stop the bleeding.
Advertisers continue to devote their budgets to Google platforms, especially YouTube. YouTube generated $6.01 billion in revenue, according to the report. The company’s profit per share rose to $26.29 from $9.87 in the first quarter of last year.
Alphabet’s product line of experimental projects such as driverless car company Waymo, healthcare provider Verily, and Google Fiber was able to cover only $198 million of its $1.15 billion loss.
Google executives said they were experiencing increased traffic due to information sharing about Covid-19 and searches for local businesses. He attributed a significant part of the growth in searches directly to the pandemic.