For Alphabet, the benefits of artificial intelligence (AI) helped boost subscriber numbers.
However, Google’s parent company’s ad sales were slightly below expectations, despite an 11% increase, which drew attention. As a result, investors sent the stock price down 3% in after-hours trading.
CEO Sundar Pichai said subscription revenue reached $9 billion in quarterly revenue in December and $15 billion annually, a five-fold increase since 2019. .
This accelerated growth is “driven by our GenAI and product leadership,” he said. He pointed to Gemini and Gemini Ultra, which he said are “coming soon” for continued application to search functionality.
Company’s The financial results announcement revealed that Google Search revenue increased 12.6% to $48 billion.
“In addition to search, we’re also seeing a lot of interest in our AI-powered solutions for advertisers,” he said, adding that YouTube is also a key driver of subscription revenue. . The company’s YouTube ad revenue increased 15.5% to $9.2 billion. The CEO said that the number of Google One subscribers is “soon to exceed 100 million.”
We are seeing a rapid increase in cloud usage.
Google Cloud-related revenue increased 25% to $9.2 billion. The “Other Betting” segment, which relates to the sale of healthcare-related services and Internet services, had sales of $657 million, up from $226 million in the same period last year, but posted an operating loss in the most recent December period. was $863 million.
Chief Business Officer Philipp Schindler said on the conference call that advertising and search were driven by growth in the retail industry. Overall, he says, with the implementation of DemandGen, tens of thousands of advertisers are seeing a 6% increase in conversions per dollar compared to image-only ads and Discovery campaigns, especially for small and medium-sized businesses. He said there is strong demand among companies.
“As we look to the future, we are starting to bring generative AI to more companies to help them build better campaigns and better ads,” he said.
YouTube Shorts remains a priority, averaging 70 million views per day, and connected TV remains the fastest growing area in viewership.
CFO Ruth Porat said the company continues to make “major investments, particularly focused on the Pixel family leveraging AI-powered innovation,” and said later in the call that “our vertical Strong demand for integrated AI portfolios is creating new opportunities.” We support Google Cloud across all product areas. ”
During the Q&A, Pichai said the NFL Sunday Ticket package “goes a long way toward solidifying YouTube’s position as the ‘must-have app’ on every TV.”
