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Google’s YouTube Generated About $40B in Revenue in Past Year, CEO Neal Mohan Says
YouTube LLC, a product of Google LLC, which is under Alphabet Inc (NASDAQ: GOOGL), reported a revenue of nearly $40 billion in the past 12 months according to its Chief Executive Officer Neal Mohan. The American online video-sharing and social media platform, however, recorded a decline in revenue for the third consecutive time. According to Mohan, the increased competition in the social media industry has reduced the volume of advertising. Furthermore, the company noted that there was an overall decline in digital advertising compared to previous years.
Nevertheless, GOOGL shares edged 1.65 percent higher on Thursday to close the day trading around $122.83. The $1.5 trillion valued tech behemoth has seen its stock rise about 40 percent YTD to trade around $123.24 during the after-hours session.
YouTube remains heavily reliant on the advertisement sector to collect revenue for its shareholders.
“Monetization for us, first and foremost, is driven by advertising,” said Mohan.
Speaking at the MoffettNathanson technology conference on Thursday, Mohan, noted that YouTube will continue to take emerging opportunities in advertising including YouTube Shorts.
Nevertheless, the company offers a premium subscription platform for users who do not want to have ads in their videos. Dubbed YouTube Premium and formerly referred to as YouTube Red, has millions of subscribers but the company has not recently released its detailed financial results. The company has other revenue collection avenues including YouTube TV which is available in the United States for a subscription of about $65.
Closer Look at YouTube Parent Company
Earlier last month, Alphabet announced the financial results for the first quarter of 2023. During the first quarter, the company announced an expenditure of about $2.6 billion related to reductions in its workforce. As the company narrowed down to the artificial intelligence (AI) industry through its cloud sector. In total, Alphabet reported a revenue of about $69.78 billion during the first quarter.
According to the announcement, YouTube ads generated a revenue of about $6.69 billion during the first quarter of 2023 compared to $6.869 billion reported during the first quarter of 2022.
The company announced huge progress in deep computer science and artificial intelligence (AI) in its bid to revolutionize internet searches.
Ruth Porat, CFO of Alphabet and Google, said:
“Resilience in Search and momentum in Cloud resulted in Q1 consolidated revenues of $69.8 billion, up 3% year over year, or up 6% in constant currency. We remain committed to delivering long-term growth and creating capacity to invest in our most compelling growth areas by re-engineering our cost base.”
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Google’s YouTube Generated About $40B in Revenue in Past Year, CEO Neal Mohan Says
