Business

Alphabet's reports $38.3 in revenue, with $3.81 billion coming from YouTube ads

Q2 results were driven by gradual improvement in the company's ads business and a strong growth in Google Cloud and other revenues

Google's office
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  • From this total revenue, $3.81 billion came from YouTube ad revenue, $3 billion from Google Cloud, and $5.12 billion from what the company calls “Google other revenues”, which includes hardware, Play Store, and non-advertising YouTube revenues;
  • Among the improvements made during the pandemic, YouTube focused on features that could help small businesses and the community as a whole.

Google‘s parent company, Alphabet, reported in Q2 revenue of $38.3 billion, ahead of the expected $37.36 billion. In comparison to the same quarter of last year, when it earned $38.9 billion, there was a slight decrease.

From this total revenue:

  • $3.81 billion came from YouTube ad revenue – up 6% year-on-year, driven by ongoing substantial growth in direct response, offset by a continued decline in brand advertising which then moderated toward the end of the quarter;
  • $3 billion from Google Cloud (the platform itself, with its infrastructure and Data and Analytics solutions, and the GSuite package of services), up 43% year-over-year;
  • and $5.12 billion from what the company calls “Google other revenues” (up 26% year-over-year), which includes hardware, Play Store, and non-advertising YouTube revenues (which also means YouTube subscriptions) revenues.

“Within Play, app revenues in the second quarter benefited from the impact of very strong growth in the number of active buyers, with more
people at home looking for entertainment. Within YouTube subscription revenues, we continued to benefit from subscriber growth across its various offerings,” said Sundar Pichai, CEO of Google and Alphabet, during the conference call with analysts.

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“We’re working to help people, businesses, and communities in these uncertain times. As people increasingly turn to online services, our platforms — from Cloud to Google Play to YouTube — are helping our partners provide important services and support their businesses,” said the executive.

Pichai also stressed that among the improvements made during the pandemic, YouTube focused on features that could help small businesses and the community as a whole.

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“We added features to make video ads more easily shoppable and browsable on YouTube, as more businesses are shifting to online, to offset physical store closures. For SMBs, we’re proud that so many are taking advantage of new features including Smart campaigns to reach new online audiences, and promoted pins on Google Maps to let customers know that their businesses are open. And to empower businesses to understand, in an easy and visual way, what products people are searching for during the special circumstances that COVID-19 has created, the Rising Retail Categories tool surfaces fast-growing, product-related categories,” said the executive.