Yahoo News YouTube Ads Are Back on an Upswing as Revenue Hits $7.7B
YouTube brought in $7.7 billion in advertising revenue in its second quarter, reversing the prior trends of a downturn.
This is an increase from the $6.69 billion in the previous quarter, which had been the third consecutive quarter marking a decrease in ad revenue, and above the $7.3 billion brought in during the second quarter of last year. Overall, in the three months ended June 30, Alphabet, the parent company of YouTube, reported revenue of $74.60 billion in revenue and net income of $18.37 billion, or $1.44 per share, beating Wall Street expectations.
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This is the first full quarter under new YouTube CEO Neal Mohan, who succeeded longtime executive Susan Wojcicki in March. In his first letter to the community, Mohan said “supporting the success of creators” was among his top priorities, and he planned to improve monetization tools and grow creator communities. Focus areas included YouTube’s short-form video offering, Shorts, and streaming products such as YouTube TV and Primetime Channels.
On the earnings call, Sundar Pichai, CEO of Alphabet and Google, said YouTube Shorts are now watched by more than 2 billion logged-in users every month, up from 1.5 billion a year ago. YouTube itself is reaching more than 150 million people on connected TV screens in the U.S., he said, and is “seeing growth and momentum internationally.” The company introduced advertising on Shorts late last year.
The executive shared prior numbers on YouTube Music and Premium subscribers, saying the services had more than 80 million as of late last year. CFO Ruth Porat added that the revenue growth in that segment, as well as the company’s decision to raise prices on both services, is in response to “significant subscriber growth.”
Signups for NFL Sunday Ticket programming began in April, but Pichai did not share any early numbers other than to say: “We look forward to hosting our first football season on YouTube this fall.”
Alphabet also announced that Porat will assume the new role of president and chief investment officer of Alphabet and Google. She will remain CFO as the company searches for a replacement. She starts in the new position, in which she will be responsible for Alphabet’s investments in its “Other Bets” segment and investments around the world, on Sept. 1.
“Ruth has worked to drive financial discipline and returns for shareholders, while spearheading investment to create sustainable, long-term value. As today’s results show, we’re making good progress and we’re committed to continuing this important work,” said Sundar Pichai, CEO of Alphabet and Google. “In her new role, Ruth will strengthen our collaboration with policy makers and shape our corporate investments to have maximum economic impact for people and economies around the world.”
Alphabet is coming off of the layoff of 12,000 employees, or about 6 percent of its workforce, in a move announced in January 2023.
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