Alphabet reported fourth-quarter earnings of $15.35 per share on revenue of $46.075 billion. Analysts were expecting the company to report earnings of $12.53 per share on revenue of $46.94 billion.
Monday’s earnings release was important for the Google parent company after it missed analysts third-quarter earnings estimates in its previous release.
Alphabet recently appointed Sundar Pichai as its new CEO in a surprise announcement in December. Co-founders Larry Page and Sergey Brin, who served as CEO and President of the company, respectively, are stepping back from management duties.
The company under Pichai was more transparent with its balance sheet in the most recent quarter, breaking out YouTube ad revenue and cloud services revenue in Monday’s release.
“To provide further insight into our business and the opportunities ahead, we’re now disclosing our revenue on a more granular basis, including for Search, YouTube ads and Cloud,” said Chief Financial Officer Ruth Porat.
“I’m really pleased with our continued progress in Search and in building two of our newer growth areas — YouTube, already at $15 billion in annual ad revenue, and Cloud, which is now on a $10 billion revenue run rate,” Pichai said.
For the quarter, YouTube reported revenue of $4.7 billion, up from $3.6 billion a year ago, while cloud revenue jumped to $2.6 billion from $1.7 billion.
Investors weren’t pleased with the results ahead of the earnings call however, sending the stock down 4% to $1,425.