YouTube ads generated approximately $6.69 billion in revenue during the first quarter of 2023, compared to $6.869 billion reported during the first quarter of 2022.
YouTube LLC is a product of Google LLCunder which alphabet inc (NASDAQ: GOOGL) reported nearly $40 billion in revenue over the past 12 months, according to its chief executive officer, Neil Mohan. The American online video-sharing and social media platform, however, reported a revenue decline for the third time in a row. According to Mohan, increasing competition in the social media industry has reduced the amount of advertising. In addition, the company noted that there was an overall decline in digital advertising compared to previous years.
Nevertheless, GOOGL shares closed Thursday at around $122.83, up 1.65 percent in day trading. The tech behemoth, valued at $1.5 trillion, saw its stock up nearly 40 percent YTD to trade around $123.24 during the after-hours session.
YouTube relies heavily on the advertising sector to generate revenue for its shareholders.
“Monetization for us is driven, first and foremost, by advertising,” Said Mohan.
Speaking at the MoffettNathanson Technology Conference on Thursday, Mohan said YouTube will continue to take on emerging opportunities in advertising, including YouTube Shorts.
Nevertheless, the company offers a premium subscription platform for users who do not wish to have advertisements in their videos. Dubbed YouTube Premium and formerly referred to as YouTube Red, it has millions of subscribers but the company hasn’t released its detailed financial results until recently. The company has other revenue streams including YouTube TV which is available in the United States for a subscription of around $65.
A closer look at the YouTube parent company
Early last month, Alphabet announced financial results for the first quarter of 2023. During the first quarter, the company announced approximately $2.6 billion in expenses related to reductions in its workforce. As the company has branched out into the Artificial Intelligence (AI) industry through its cloud sector. Overall, Alphabet reported revenue of approximately $69.78 billion during the first quarter.
As per the announcement, YouTube ads generated approximately $6.69 billion in revenue during the first quarter of 2023, compared to $6.869 billion reported during the first quarter of 2022.
The company announced huge advances in Deep Computer Science and Artificial Intelligence (AI) to revolutionize Internet searches.
Ruth Porat, CFO of Alphabet and Google, said:
“Search flexibility and momentum in the cloud resulted in first quarter consolidated revenue of $69.8 billion, up 3% year over year, or 6% in constant currency. We remain committed to building our ability to deliver long-term growth and investing in our most compelling growth areas by re-engineering our cost base.
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