Google on Monday released data for the first time on Its YouTube and cloud computing businesses in its fourth-quarter 2019 results. YouTube’s advertising revenue for fiscal 2019 was $15.15 billion, compared with $4.72 billion in the fourth quarter alone. The division’s revenue for fiscal 2018 was $11.16 billion, including $3.61 billion in the fourth quarter of the year. The data does not include YouTube’s non-advertising revenue, such as Subscription revenue from YouTube TV, which is included in Google’s Other Revenues.
According to Ruth Porat, Google’s CFO, YouTube’s non-advertising business generates $3bn in revenue a year on fourth-quarter figures. She added that most of YouTube’s advertising revenue went to creators, but Google did not disclose the exact number.
Google’s cloud business generated revenue of $8.92 billion in fiscal 2019, including $2.61 billion in the fourth quarter. That compares with $5.84 billion in revenue for cloud computing in 2018 and $1.71 billion in the fourth quarter of that year.
Shares in Alphabet, Google’s parent company, fell about 3.5 percent after the session.
Analysts have long called on Google to report YouTube’s revenue separately because it is considered an important part of its advertising business. Comparing YouTube’s revenue with another media company, it had a higher advertising revenue in 2018 than Discovery: Discovery’s annual revenue was $10.6 billion, compared with $11.16 billion for YouTube. Discovery has not yet reported its full-year 2019 results.
Google’s cloud business is younger but growing fast, and it hopes to surpass Amazon’s AWS and Microsoft’s Azure. Google said in July that its cloud computing business had just reached $8 bn a year and planned to triple its sales force in the next few years.
Sundar Pichai’s first financial report, led by Alphabet, Google’s parent company, came as a step towards greater transparency. Larry Page, alphabet’s former CEO and co-founder, stepped down in December and is headed by Mr. Pichai, who is in charge of the broader business. Page and co-founder Sergey Brin also resigned as alphabet’s president, but retain edgy voting rights.
Google has been closely watched by federal and state regulators for signs of unfair competition. A coalition of 50 attorneys general from different states and territories announced an investigation into Google’s advertising business. The new disclosure program gives investors a deeper understanding of Google’s advertising businesses.