Alphabet’s parent company Google Third-quarter revenue increased 14 percent from a year earlier, driven by a recovery in ad revenue for both Google and YouTube. YouTube generated $ 5 billion in advertising revenue in the third quarter of 2020 – an indication that advertisers who cut back on their spending due to the coronavirus earlier in the year may revert to something like normal.
YouTube now has more than 30 million subscribers to music and paid payments – 35 million, including free trials – and YouTube TV has more than 3 million subscribers. This Particularly Strong, since YouTube TV announced the Price increased monthly from $ 50 to $ 64.99 in June. Google CEO Sundar Pichai said in a call with investors to discuss what may be a sign of the times, YouTube guided meditation videos views have increased 40 percent since March, and DIY face mask tutorials have been viewed more than a billion times earnings results.
“We are pleased with the degree to which advertisers have revitalized their budgets in the third quarter,” said Ruth Porat, chief financial officer of Alphabet and Google, in a call with investors. It added that it is evidence that consumers are showing strong demand across nearly all sectors. “The robust growth of watch time on YouTube allows advertisers to reach audiences that they cannot reach on TV.” Porat said the company has invested in moderating the content to ensure both YouTube creators and users get a positive experience.
Google’s advertising division generated $ 37.1 billion in revenue, up from $ 34 billion last year. YouTube ad revenue increased 30% from $ 3.8 billion in the third quarter of 2019.
“This year, including this quarter, has shown how important Google’s foundational product – search – is to people,” Pichai said on the call.
This quarter was in sharp contrast to the disappointing second quarter of 2020, as it was the second quarter of 2020 Revenues are down for the first time ever. This quarter, Google returned to growth, with revenues of $ 46.2 billion in the third quarter, up from $ 40 billion a year earlier, and net income of $ 11.24 billion, up from $ 7.06 billion last year.
Google’s “other” division, which includes devices, cloud services, and the Play Store, generated $ 5.4 billion in revenue, up from $ 4 billion. The Other Bets segment – which includes Waymo and Verily – generated $ 178 million in revenue, but remained in losses for the company, to the tune of $ 1.1 billion. This is worse than this time last year.
Google’s cloud division generated $ 3.44 billion in revenue, up from $ 2.3 billion a year ago, and the search sector generated $ 26.3 billion in revenue, up from $ 24.7 billion. Pichai said clients are increasingly moving to the cloud, “to increase efficiency and lower IT costs,” adding that the future of work is creating “significant demand growth” for Google’s cloud products. In the next quarter, he added, Google will split its cloud division as a separate reporting division.
Pichai said the company’s video conferencing platform, Google Meet, has hosted 235 million daily meetings and more than 7.5 billion daily video calls.
Pichai also said the company is ready for The lawsuit filed last week by the Ministry of Justice, Which alleges that the internet giant has an illegal monopoly on the search and advertising markets. He said, “We believe that our products bring great benefits and we will work with confidence to prove our case.” “Our company’s focus remains on continuing our work to build a research product that people love and appreciate.”
Update October 29 6:09 PM ET: Added details from Alphabet’s call with investors
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