>It generated $15 billion last year not including 20 million Premium subscribers.
To clarify, that $15 billion is revenue and not net income/profit. Since Alphabet Inc didn't reveal the internal costs for Youtube, it means we still don't know if Youtube is losing money, or breaking even, or making a profit. So the gp's question of "how do we know it's making money?" is still unanswered.
Another example to help differentiate revenue vs profit: Tesla "generated" $24 billion in revenue last year but it didn't "make money" because they still lost $862 million.[1] No profits.
It doesn't help that the journalist of your The Verge article further confuses readers by incorrectly using the phrase "bottom line" instead of the "top line".[2] Revenue is actually the "top line". Net income/profit is the "bottom line":
>, that the company has revealed how much money YouTube-hosted ads contribute to the search giant’s _bottom line_. On an annual basis, Google says YouTube generated $15 billion last year and contributed roughly 10 percent to all Google revenue.
jasode|5 years ago
To clarify, that $15 billion is revenue and not net income/profit. Since Alphabet Inc didn't reveal the internal costs for Youtube, it means we still don't know if Youtube is losing money, or breaking even, or making a profit. So the gp's question of "how do we know it's making money?" is still unanswered.
Another example to help differentiate revenue vs profit: Tesla "generated" $24 billion in revenue last year but it didn't "make money" because they still lost $862 million.[1] No profits.
It doesn't help that the journalist of your The Verge article further confuses readers by incorrectly using the phrase "bottom line" instead of the "top line".[2] Revenue is actually the "top line". Net income/profit is the "bottom line":
>, that the company has revealed how much money YouTube-hosted ads contribute to the search giant’s _bottom line_. On an annual basis, Google says YouTube generated $15 billion last year and contributed roughly 10 percent to all Google revenue.
[1] https://www.google.com/search?q=tesla+revenue+2019+loss
[2] https://en.wikipedia.org/wiki/Income_statement
AndrewUnmuted|5 years ago