Google executives focused attention on its pending $2.1 billion acquisition of Fitbit, highlighting anticipated opportunities the deal will open as they revealed an annual drop in hardware revenue during Q4 2019.
Revenue in parent Alphabet’s Google Other category, which comprises hardware, Play Store and non-advertising revenue from YouTube, increased from $4.8 billion in Q4 2018 to $5.3 billion. However, on an earnings call, Alphabet and Google CFO Ruth Porat attributed the gains to the latter two segments, which she said offset unspecified declines in hardware revenue.
She said the company is eagerly awaiting new opportunities related to the Fitbit deal, which “will add strong capabilities in wearables and advance our vision of ambient computing for the Android ecosystem”, but in the meantime will continue to execute on its product roadmap at a “measured pace”.
In a first, Alphabet broke out revenue figures for its YouTube advertising and Cloud businesses, revealing the former grew sales from $11.2 billion in the full year 2018 to $15.1 billion in 2019. The Cloud segment’s figure grew from $5.8 billion to $8.9 billion.
Alphabet’s net profit increased from $8.9 billion in Q4 2018 to $10.7 billion. Overall revenue of $46.1 billion was up 17 per cent.Subscribe to our daily newsletter Back