Alphabet Posts Record Results in Q4

Google parent Alphabet finished 2021 with record quarterly sales that topped expectations. Its internet advertising business surged on consumers using Google search as they shopped online and advertisers upping their budgets.

“Our deep investment in AI technologies continues to drive extraordinary and helpful experiences for people and businesses, across our most important products. Q4 saw ongoing strong growth in our advertising business, which helped millions of businesses thrive and find new customers, a quarterly sales record for our Pixel phones despite supply constraints, and our Cloud business continues to grow strongly,“ said Sundar Pichai, CEO of Alphabet and Google.

Quarterly revenue rose 32% to $75.33 billion with operating income growing from $15.65 billion in 2020 to $21.89 billion. Diluted EPS rose from $22.30 in the same period in 2020 to $30.69. The results for the full year 2021 were marked by even larger growth. Revenue went up 41% to $257.64 billion while operating income jumped from $41.22 to $78.71 billion. Diluted EPS grew to $112.20 in 2021 from $58.61 in the previous year.

“Our fourth-quarter revenues of $75 billion, up 32% year over year, reflected broad-based strength in advertiser spend and strong consumer online activity, as well as substantial ongoing revenue growth from Google Cloud. Our investments have helped us drive this growth by delivering the services that people, our partners, and businesses need, and we continue to invest in long-term opportunities,“ said Ruth Porat, CFO of Alphabet and Google.