Feb 3, 2020 - Technology

Alphabet lifts the hood on YouTube financials

Photo: Aytac Unal/Anadolu Agency/Getty Images

Disclosing YouTube revenue separately for the first time, Alphabet said Monday that the Google-owned video site accounted for more than 10% of the company's $46.1 billion in revenue last quarter, and more than $15 billion for the year.

Why it matters: Everyone knew YouTube was a big business, but until now, we didn't know exactly how big.

Details, from Alphabet's fourth-quarter 2019 earnings, released Monday:

  • Revenue from YouTube ads came to $4.7 billion in the fourth quarter, up 31% year over year. It came to $15.1 billion for the full year 2019, up 36% from 2018.
  • Google Cloud revenue hit $2.6 billion for the quarter and $8.9 billion for the full year, up 53% in both cases.
  • Despite that aggressive growth, Google is still playing catch-up to market leaders Amazon and Microsoft when it comes to cloud computing.
  • Alphabet also saw strong overall bottom-line results, notching $15.35 earnings per share in Q4, compared to an analyst consensus estimate of $12.53, according to Refinitiv by way of CNBC.

Yes, but: Alphabet shares still slumped some 4% in after-hours trading Monday. Overall revenues for the quarter came in at $46.1 billion, vs. Wall Street's expectation of $46.9 billion, per Refinitiv. The total represented a 17.3% year-on-year increase — Alphabet's slowest fourth-quarter growth since 2015, Reuters noted.

Between the lines: Despite positive signs for overall profitability and growth in YouTube and Cloud, an extended slowdown in Google's core advertising business would be certain to spook investors. Facebook, by contrast, just last week reported an earnings beat on both the top and bottom lines.

Go deeper

Earnings on pace for a strong rebound

Data: FactSet; Chart: Axios Visuals

Thanks to a cadre of better-than-expected earnings results from the companies that have reported their fourth-quarter earnings so far, the earnings growth rate for the S&P 500 has risen to 0.7%.

Why it matters: That is a far cry from the estimated earnings decline of -1.7% at the end of the quarter. If it holds, this would mark the first time the index has reported year-over-year growth in earnings since Q4 2018. 

The average NBA team is now worth $2.1 billion

Reproduced from Forbes; Chart: Axios Visuals

The average NBA franchise is now valued at $2.12 billion, per Forbes — a figure that has grown 476% in the past decade.

Why it matters: Thanks to the NBA's international growth and the $24 billion TV deal it signed with ESPN and Turner in 2014, team values have grown at a much faster rate than the other three major U.S. sports leagues.

Go deeperArrowFeb 12, 2020 - Sports

Snap stock sinks after mixed Q4 earnings

Illustration: Rebecca Zisser/Axios

Snap Inc.'s stock was down 11% Tuesday in after-hours trading after the company reported it fell short on Wall Street's revenue expectations.

Yes, but: The company otherwise did pretty well. It turned its first-ever profit on an adjusted basis and grew its user base for the fourth consecutive quarter. It also provided positive guidance for the quarter ahead.