Google parent Alphabet has revealed YouTube revenues for the first time, with advertising sales on the platform doubling in the last two years.
The video sharing website, famed for catapulting Briton Zoe “Zoella” Sugg to international fame alongside controversial stars PewDiePie and Jake Paul, made the company $15bn (£11.5bn) in 2019, around 9pc of its overall revenue.
Alphabet also said its newer cloud computing unit generated $8.9bn in 2019.
Sundar Pichai, Alphabet’s Chief Executive Officer, said: “I’m really pleased with our continued progress in Search and in building two of our newer growth areas – YouTube, already at $15bn in annual ad revenue, and cloud, which is now on a $10 billion revenue run rate.”
By comparison, cloud market leader Amazon Web Services turned $9.95bn in the fourth quarter of 2019.
Alphabet hired former Oracle sales guru Thomas Kurian in 2019 to lead its cloud division after it was criticised for coming late to the market.
Shares were down 4pc in after hours trading last night despite strong revenue growth of 18pc year-on-year.
It is the first set of results since Mr Pichai was promoted to chief executive officer of Alphabet in December, after four years leading Google.
He was widely expected to cap Alphabet’s spending and focus on enhancing its technological edge including research in quantum computing, digital advertising and cloud computing.
Investors have been keeping a close eye on digital advertising growth. Google’s revenue from clicks has steadily grown over the past decade but fears of an economic slump have made shareholders jittery.
During a downturn, analysts have suggested, marketing budgets are the first thing to go. Last month, Alphabet reached a valuation of one trillion dollars for the first time.
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