YouTube Q1 Ad Sales Beat Forecasts, Up Nearly 50% To $6 Billion From Year Earlier

YouTube advertising revenue jumped 48% to just over $6 billion in the first quarter of the year as the economy reopens, helping parent Google/Alphabet batter sales forecasts.

Total ad revenue at Alphabet jumped to $44.7 billion from $33.7 billion. Total sales including Google Cloud hit $55.3 billion for the three months ended in March. Alphabet shares popped more than 4% in after-hours trading.

Ad revenue through Google Services, which includes Search and YouTube, is the biggest chunk of sales. The division also houses YouTube TV, currently in a battle with Roku, which warned its customers yesterday the subscription service could go dark in the coming days due to what it calls Google’s “predatory” and “monopoly” behavior. Google doesn’t break out revenue lines from Services.

YouTube TV has said it’s negotiating “in good faith” with Roku to reach a new deal but that “Roku often engages in these types of tactics in their negotiations.”

Google, as does the rest of big tech, also finds itself under increasing antitrust scrutiny for its Android mobile technology that runs smartphones around the world. It’s being sued by regulators for allegedly abusing its dominance in search and advertising. Google, Facebook and Amazon dominate online advertising.

Google Cloud infrastructure and analytics platform is the tech giant’s other big piece of business but much smaller than services — it’s third in the Cloud wars after Microsoft Azure and Amazon Web Services. It posted revenue of $4 billion, up from $2.7 billion the year before.

“Over the last year, people have turned to Google Search and many online services to stay informed, connected and entertained. We’ve continued our focus on delivering trusted services to help people around the world. Our Cloud services are helping businesses, big and small, accelerate their digital transformations,” said Sundar Pichai, CEO of Google and Alphabet.

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This article was printed from https://deadline.com/2021/04/youtube-ad-sales-surge-50-to-6-billion-in-the-first-quarter-1234745186/