REUTERS/Beck Diefenbach
- Alphabet will announced its Q4 earnings after the market closes, and all eyes are on Google Cloud.
- This is the first time Google will break out Cloud into its own reporting segment.
- Analysts expect a continued recovery from the pandemic, which led to a nasty slump for Google in Q2.
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Alphabet is set to announce its fourth-quarter earnings after the market closes, and all eyes are on Google Cloud.
Google began breaking out Cloud and YouTube revenue a year ago, but this will be the first time we get a detailed look at just how how profitable the cloud business is, factoring in its core platform and the productivity tools Google sells to enterprise customers.
Elsewhere, analysts expect Google’s advertising business to continue showing a recovery from the pandemic, which led to a nasty slump in Q2. Analysts expect to see Q4 revenue (minus traffic acquisition costs) jump 18% from a year earlier.
Here’s what we’re expecting to see after the closing bell, according to Bloomberg’s survey of analysts.
- Revenue: $44.14 billion, minus traffic acquisition costs (versus $37.57 billion in Q4 2019)
- Earnings per share (GAAP): $15.58 (versus $15.35 in Q4 2019)
- Google Cloud revenue: $3.80 billion
- YouTube ads revenue: $6.22 billion
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