Analysis of Reportable Segments
Alphabet Inc. operates in 3 segments: Google Services; Google Cloud; and Other Bets.
Segment Profit Margin
Alphabet Inc., profit margin by reportable segment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Google Services | 35.17% | 34.15% | 38.67% | 32.38% | 32.27% |
| Google Cloud | 5.19% | -11.29% | -16.14% | -42.94% | -52.09% |
| Other Bets | -268.17% | -569.57% | -701.33% | -681.28% | -732.02% |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Google Services | Google Services segment profit margin ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
| Google Cloud | Google Cloud segment profit margin ratio improved from 2021 to 2022 and from 2022 to 2023. | |
| Other Bets | Other Bets segment profit margin ratio improved from 2021 to 2022 and from 2022 to 2023. |
Segment Profit Margin: Google Services
Alphabet Inc.; Google Services; segment profit margin calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating income (loss) | 95,858) | 86,572) | 91,855) | 54,606) | 48,999) |
| Revenues | 272,543) | 253,528) | 237,529) | 168,635) | 151,825) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 35.17% | 34.15% | 38.67% | 32.38% | 32.27% |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Segment profit margin = 100 × Operating income (loss) ÷ Revenues
= 100 × 95,858 ÷ 272,543 = 35.17%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Google Services | Google Services segment profit margin ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
Segment Profit Margin: Google Cloud
Alphabet Inc.; Google Cloud; segment profit margin calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating income (loss) | 1,716) | (2,968) | (3,099) | (5,607) | (4,645) |
| Revenues | 33,088) | 26,280) | 19,206) | 13,059) | 8,918) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 5.19% | -11.29% | -16.14% | -42.94% | -52.09% |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Segment profit margin = 100 × Operating income (loss) ÷ Revenues
= 100 × 1,716 ÷ 33,088 = 5.19%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Google Cloud | Google Cloud segment profit margin ratio improved from 2021 to 2022 and from 2022 to 2023. |
Segment Profit Margin: Other Bets
Alphabet Inc.; Other Bets; segment profit margin calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating income (loss) | (4,095) | (6,083) | (5,281) | (4,476) | (4,824) |
| Revenues | 1,527) | 1,068) | 753) | 657) | 659) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | -268.17% | -569.57% | -701.33% | -681.28% | -732.02% |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Segment profit margin = 100 × Operating income (loss) ÷ Revenues
= 100 × -4,095 ÷ 1,527 = -268.17%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Other Bets | Other Bets segment profit margin ratio improved from 2021 to 2022 and from 2022 to 2023. |
Revenues
Alphabet Inc., revenues by reportable segment
US$ in millions
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Google Services | 272,543) | 253,528) | 237,529) | 168,635) | 151,825) |
| Google Cloud | 33,088) | 26,280) | 19,206) | 13,059) | 8,918) |
| Other Bets | 1,527) | 1,068) | 753) | 657) | 659) |
| Hedging gains (losses) | 236) | 1,960) | 149) | 176) | 455) |
| Total | 307,394) | 282,836) | 257,637) | 182,527) | 161,857) |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
Operating income (loss)
Alphabet Inc., operating income (loss) by reportable segment
US$ in millions
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Google Services | 95,858) | 86,572) | 91,855) | 54,606) | 48,999) |
| Google Cloud | 1,716) | (2,968) | (3,099) | (5,607) | (4,645) |
| Other Bets | (4,095) | (6,083) | (5,281) | (4,476) | (4,824) |
| Alphabet-level activities | (9,186) | (2,679) | (4,761) | (3,299) | (5,299) |
| Total | 84,293) | 74,842) | 78,714) | 41,224) | 34,231) |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).