Google’s Revenue By Segment (2016-2023)

This statistic highlights Google’s Revenue By Segment split across Google Cloud, Network, Search, Hedges Gains/Losses, Youtube Ads, and Other Bets from 2016 onwards.

Google’s Revenue By Segment

(All figures in billions, except percentage)

The total revenue of the company increased by 34.41% YoY from $41.15 billion in Q1 2020 to $55.31 billion in Q1 2021. All the segments showed double-digit growth except the hedging gains/losses segment. However, in the previous quarter, revenue stood at $56.70 billion.

Google Cloud

Google Cloud Platform offers various services like computing, storing, networking that run on Google hardware. Google Cloud has a market share of 4.6% in the hosting industry. Google Cloud Platform’s revenue increased 46.20% from $2.77 billion in Q1 2020 to $4.05 billion in Q1 2021. Google Cloud Platform follows a pay-as-you-go pricing model in which the user has to pay only for the services consumed. Amazon Web Services, Alibaba Cloud, Microsoft Azure are major competitors of Google Cloud.

Youtube Ads

Advertisements on Youtube are placed through Google Adsense and Google Ad Manager. On average, Youtube receives $18 per 1000 ad views. Google has built a world-class platform for advertisers which aims to ensure a great user experience by showing the right ads at the right time. Revenue from Youtube Ads saw second highest growth of 49.13% YoY. In Q1 2021, Youtube Ads generated revenue of $6.01 billion and contributed 10.87% to the total revenue. In the past three years, Youtube Ads have generated more than $34 billion in revenues alone.

Google Network

Google Network generates a majority of its revenue from advertisements. Google Network comprises of two segments-

• Google Search Network- it includes the ads that appear on the Google search engine and other Google applications like Google Maps, Shopping.
• Google Display Network- it includes the ads that appear on Google sites like Blogger, Google Mail, and thousands of popular sites around the world.

Google Network revenue witnessed an increase of 30.26% from $5.22 billion in Q1 2020 to $6.80 billion in Q1 2021.

Google Other

Google Other revenues include the revenue generated by Playstore, Hardware, and Non-Advertising Youtube revenues. Revenue from Google Other saw an increase of 46.50% from $4.43 billion in Q1 2020 to $6.49 billion in Q1 2021.

Google Search And Other

Google is the most widely used search engine in the world and has a market share of 92% in the Search engine segment. Google search contributed 57.64% to the total revenue in Q1 2021. Google Search revenues increased from $24.50 billion in Q1 2020 to $31.88 billion in Q1 2020 and witnessed a growth of 30.11% YoY. Google’s competitor in this segment includes- Firefox, Bing, etc. 

Other Bets

Alphabet has invested in the Other Bets segment of Google which includes various companies like- Waymo, Verily, Access, Calico, Nest, CapitalG. These are emerging businesses at different stages of development and only a few of them are generating revenue. These companies operate as independent companies and have their management and investors. Revenue from Other Bets saw an increase of 53.85% from $0.13 billion in Q1 2020 to $0.20 billion in Q1 2021.

Hedging gains/losses

Google uses foreign currency forward contracts to hedge foreign exchange rate risks for its investments in other countries. A foreign currency forward contract is a contract between two parties for the exchange of a certain amount of currency for another currency at a fixed exchange rate on a fixed date. Google reported revenue of $-0.11 billion in this segment and contributed negatively to the revenue share in Q1 2021 with -0.20%.

Company Overview

Google Inc. was incorporated in the year 1998 by Larry Page and Sergey Brin. The headquarters of Google is situated in California, United States. In August 2004, Google became a public company through Initial Public Offering.

Google’s search engine is ranked number one in the list of search engines. Google also offers a variety of services to its users like- Gmail, Google Drive, Google Photos, Google Maps, Google Playstore, Google Calendar, etc. 

In 2016, Google entered into the mobile phone segment by launching the Google Pixel Android phone. These phones were designed and developed by Google itself.  Over the years, Google has made many acquisitions like- Youtube, Motorola, Fitbit. These acquisitions have helped Google increase its portfolio and enter into new categories.

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