Google Cloud Reaches $10B Annual Revenue Run Rate Amid Strong Platform Growth
Google Cloud achieves a $10 billion annual revenue run rate after posting $2.614 billion in fourth-quarter revenue, marking a 53 percent year-over-year increase. The rapid expansion is driven primarily by accelerating growth in the Google Cloud Platform and larger enterprise deals.
Google Cloud reaches a $10 billion annual revenue run rate as Alphabet reports $2.614 billion in cloud revenue for the fourth quarter of 2019. This figure represents a 53 percent increase compared to the same period in the previous year, bringing full-year 2019 cloud revenue to $8.918 billion. Alphabet highlights this milestone as part of a new effort to provide more granular financial disclosures across its various business segments.
The overall cloud growth is driven primarily by the Google Cloud Platform (GCP), which grows at a rate meaningfully higher than the cloud business as a whole. CFO Ruth Porat attributes this strong GCP performance to infrastructure offerings, data and analytics platforms, and the new multi-cloud Anthos product. Additionally, the G Suite productivity segment continues to expand steadily among both small businesses and large enterprises.
Google Cloud is also securing significantly larger enterprise contracts, with the number of deals over $50 million more than doubling year-over-year. Notable new customers include Wayfair, Lowe's, Lufthansa Group, and the US Postal Service, while a recent 10-year agreement with Sabre demonstrates long-term industry confidence. CEO Sundar Pichai notes that these massive cloud deals increasingly span across other Alphabet products like Android Auto and Waymo.