Yesterday, Alphabet announced financial results for the last quarter of last year. In it, it increased sales by 13% to 86.3 billion dollars. Net income rose 52% to $20.7 billion.
Ads remain the biggest money maker, accounting for more than $65 billion in revenue, of which $48 billion came from search ads, $9.2 billion from YouTube, and $8.3 billion generated by ads on third-party websites and services. Another 10.8 billion comes from direct sales of devices, applications or subscriptions, 9.2 billion is due to the cloud division.
Alphabet CEO Sundar Pichai focused a lot on subscriptions in a conference call with journalists and analysts. The company is already close to 100 million subscribers to Google One, which combines cloud storage for files and e-mails, VPN and other bonuses. It is said that the number of subscribers to YouTube (Music) Premium is also growing significantly, but there are no absolute numbers.
But subscriptions already account for 15 billion dollars in annual sales, which is five times more than in 2019. But total sales for 2013 are 307.4 billion, so subscriptions still make up only 5%. The vast majority of income is and will be from advertisements.
That fantastic AI Gemini demo video is a lie. It can’t work with video or talk, let alone in real time
Pichai also mentioned that Google will soon launch Gemini Ultra, a large language model that is supposed to be better than GPT-4. But at the same time, engineers are already working on a new generation of AI that has the ability to go even further. In addition, it hosts partner neural networks in its cloud. The most famous of them is Claude from Anthropic, which rivals Bard or ChatGPT.