UPDATED with comments from earnings calls: Google‘s Youtube so ad revenue jumped last quarter and passed $ 7 billion from $ 3.8 billion a year ago. The video giant’s parent Alphabet saw an overall increase in sales in the second quarter of 2021 to almost $ 62 billion. from $ 38 billion, beating Wall Street expectations across the board.
The numbers come amid a downpour of major tech earnings Tuesday including Apple and Microsoft and after stunning performances from Snap and Twitter last year that demonstrated the power of digital advertising. Google said retail was the largest contributor to ad sales along with travel, financial services and entertainment. CFO Ruth Porat cited a “rising tide of online activity in many parts of the world” in the second quarter, which is reflected in the huge revenue.
Apple runs high-end iPhone sales, subscription gains for 3rd quarter earnings
YouTube Premium and Subscription Services YouTube TV as well as in-app purchases, digital content and hardware products like Fitbit are grouped in a sector called “Other” within Google Services. Thus, revenue rose to $ 6.5 billion last quarter from $ 4.4 billion the year before; the company does not break out the components and it is really hard to get any color.
Alphabet CEO Sundar Pichai was asked during a Q&A by an earnings analyst whether the company – which looks at something like $ 200 billion in digital advertising revenue in 2021 based on the last quarter – is considering diversifying it. He said yes, sort of, noting, among other things, that YouTube has both a subscription and an ad-based component, and that he is committed to both long-term.
The company also invests in Google Cloud, AI and through Waymo self-driving cars. Google is also pushing for e-commerce. YouTube also just rolled out a TikTok rival called Shorts and incentives for creators to use it.
The giant company sees great benefits from connected or smart TVs and invests heavily in TV providers and cable box manufacturers on it. Google has a strong interest in “television becoming computer devices over time,” Pichai said.
Neither Pichai nor Porat were asked about the call or mentioned regulatory issues that have bubbled up for tech giants this year. Earlier this month, 36 states filed cartel cases against the giant over its Play Store for Android – the fourth competition case that government enforcers have filed against Google in the past year.
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