Sunday, November 1, 2020

Google Cloud hits Q3 revenue of $3.4 billion, up 45%

Google Cloud generated Q3 revenue of $3.444 billion, up 44.7% from $2.379 for the same period a year earlier.

On the quarterly investor call, Sundar Pichai, CEO Alphabet and Google, stated:  "Three trends are driving the continued momentum of our Cloud business. First, asthe shift to digital accelerates, Google Cloud continues to provide a foundation for data processing and analytics, one of the fastest-growing segments of the market. BigQuery, which provides real-time and predictive analytics, is winning retailers like Best Buy, helping them create better experiences for shoppers. Customers value our differentiated AI/ML-based industry specific solutions. This is leading to significant wins with brands like Unilever, Amwell and Reckitt Benckiser. Additionally, we’re working with government agencies like the U.S. Navy to modernize maintenance operations for vessels and facilities. We’re also partnering with the Defense Innovation Unit, part of the U.S. Department of Defense, to help military doctors with cancer detection research. And recently, we signed an enterprise agreement with the U.S. Department of Energy to help scale research efforts and innovate across national labs and field sites."

"Second, customers are increasingly moving to the cloud to drive efficiencies and lower IT costs. Our strength in multi-cloud is an advantage here. This is helping us win large data center and IT transformation deals, like Nokia, which recently announced it’s migrating and modernizing approximately 30 data centers across 12 countries onto Google Cloud."

"And third, the future of work is creating a more collaborative world. Customers are looking to support hybrid work environments, and we’re seeing significant growth in demand. Earlier this month, we announced Google Workspace, which brings together all of our communication and collaboration apps and ensures they work better together. This is helping organizations like the State of West Virginia and shipping company, Ocean Network Express, improve collaboration and productivity for their employees. Google Workspace continues to grow. For example, Google Meet saw a peak in Q3 of 235 million daily meeting participants and more than 7.5 billion daily video call minutes."