https://www.cnbc.com/2021/02/02/google-cloud-lost-5point61-billion-on-13point06-billion-revenue-last-year.html

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Cloud Computing

Google Cloud lost $5.61 billion on $13.06 billion revenue last year

Published Tue, Feb 2 20214:05 PM ESTUpdated Tue, Feb 2 20215:21 PM
EST
Jennifer Elias@jenn_elias
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Key Points

  * It is the first time Google has revealed operating income for its
    cloud unit.
  * It comes one year after the company began breaking out revenue
    for the cloud business, which trails Microsoft and Amazon in
    market position.
  * Wall Street has sought additional financial details surrounding
    the company's cloud investments, which have included hiring and
    acquisition sprees.

Thomas Kurian, CEO of Alphabet's Google Cloud, speaks at the Google
Cloud Next conference in San Francisco on April 9, 2019.
Michael Short | Bloomberg | Getty Images

Google's cloud business reported operating loss of $5.61 billion in
2020. It brought in $13.06 billion in revenue for the year.

It's the first time the company revealed the operating income metric
for its cloud business.

The unit's losses appear to be growing as the company invests heavily
in sales staff. The company said the cloud unit lost $4.65 billion on
$8.92 billion in revenue in 2019, and lost $4.35 billion on $5.84
billion in revenue in 2018.

It lost $1.24 billion on revenue of $3.83 billion in Q4 2020.

VIDEO1:1001:10
Alphabet shares surge after beating on both top and bottom line
Closing Bell

Alphabet's latest push to show it's serious about its cloud unit
comes as it tries to diversify revenue, which primarily comes from
advertising, a business that showed vulnerability in 2020 --
particularly in the second quarter. Google Cloud includes
infrastructure and data analytics platforms, collaboration tools such
as Google Docs and Sheets, and "other services for enterprise
customers."

Wall Street has been seeking additional financial details surrounding
the company's cloud business, which Google has pumped resources to
grow while in a distant third place to heavyweights Microsoft and
Amazon. Google began breaking out cloud revenue for the first time,
one year ago.

The company's past attempts to bolster its cloud unit under CEO Diane
Greene, who left in 2018, failed to capture much market share. But,
since former Oracle executive Thomas Kurian came to Google to lead
its cloud efforts in 2019, the company has gone on hiring and
acquisition sprees.

Related Tags

  * Enterprise
  * Amazon.com Inc
  * Alibaba Group Holding Ltd
  * Microsoft Corp
  * International Business Machines Corp

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