Google’s latest batch of earnings is here, closing out the fiscal year for 2020. With the new Q4 2020 report comes news of a higher than estimated earnings-per-share (EPS) and revenue, which has caused a rise in stock as the investors dive deeper into the Google rabbit hole.
Originally estimating an EPS of $15.90, Google managed to close out the fourth quarter with a total EPS of $22.30. The company’s closing revenue was also up, closing at $56.9 billion versus the original proposed $53.13 billion.
The press release detailing the earnings also noted that Google will now be reporting results for Google Services, Google Cloud and Other Bets. The company also provided details about the revenue and losses tied to each category, noting that it lost a total of $5.6 billion throughout the 2020 fiscal year, with $1.26 billion of that lost in Q4 2020 alone.
Google also shared that it plans to reconfigure how it accounts for its servers, writing in the press release that it determined that it should adjust the estimated useful life of its servers from three to four years and that the estimated useful life of its network equipment should be adjusted from three to five years. These changes will be effective at the start of fiscal year 2021.
Another noteworthy point comes with the reported ad revenue from YouTube, which continues to grow as more content is uploaded and more users watch online video content. For Q4 2020, Google is reporting a total YouTube ad revenue of $6.9 billion up from Q4 2019's earnings of $4.7 billion.
You can view the full earnings release on Alphabet’s Investor’s Relations page to take a look at all the record quarterly profits and revenues that Google is reporting today.
For more information on the latest stocks and earning reports, make sure you check out our game trader page, as well as our schedule to all video game and tech companies Q1 2021 earnings releases, where we’ve broken down when the reports will drop, where you can find them, and even what symbol the stock can be found at.