Google’s parent company Alphabet’s third-quarter revenue increased by 14% over the same period last year, thanks to the rebound in advertising revenues from Google and YouTube. YouTube brought in $5 billion in advertising revenue in the third quarter of 2020-this shows that advertisers have cut spending due to the coronavirus earlier this year and may be returning to normal.
YouTube now has more than 30 million music and paid users-35 million, including a free trial version-YouTube TV has more than 3 million users.That is especially Since YouTube TV announced in June that it raised its monthly price from $50 to $64.99, sales of the product have been strong. Google CEO Sundar Pichai said in a conference call with investors that this may mark the arrival of the times. Since March, the number of views of guided meditation videos on YouTube has increased by 40%, and the DIY mask tutorial The number of views has exceeded 1
Ruth Porat, the chief financial officer of Alphabet and Google, said in a conference call with investors: “We are satisfied with the extent to which advertisers have really restarted their budgets in the third quarter,” she added, There is evidence that consumers in almost all industries show strong demand. “The strong increase in YouTube viewing time allows advertisers to reach audiences that cannot be reached on TV.” Porat said the company has invested in content review to ensure that creators and users on YouTube have a good experience.
Google’s advertising department’s revenue was $37.1 billion, an increase from last year’s $34 billion. YouTube advertising revenue increased by 30% from $3.8 billion in the third quarter of 2019.
Pichai said on the phone: “This year, including this quarter, has shown the value of Google’s founding product-search to people.”
In stark contrast to the disappointing second quarter of 2020, Google’s revenue declined for the first time in this quarter. Google resumed growth this quarter, with revenue in the third quarter of US$46.2 billion, higher than the US$40 billion in the same period last year, and net income of US$11.24 billion, higher than last year’s US$7.06 billion.
Google’s “other” divisions (including hardware, cloud services and the Play Store) increased revenue from $4 billion to $5.4 billion. Its “other bets” part-including Waymo and Verily-had revenue of $178 million, but it was still a loss for the company, reaching $1.1 billion. This is worse than this time last year.
The revenue of the Google cloud division was US$3.44 billion, higher than the US$2.3 billion a year ago; the revenue of the search field was US$26.3 billion, higher than the US$24.7 billion last year. Pichai said that customers are increasingly turning to cloud computing to “improve efficiency and reduce IT costs,” adding that the future of work is bringing “significant growth in demand” for Google’s cloud computing products. He added that next quarter, Google will split its cloud computing department into a separate reporting department.
Pichai said that Google Meet, the company’s video conferencing platform, has 235 million meetings per day and more than 7.5 billion video calls per day.
Pichai also said that the company is ready to accept a lawsuit filed by the US Department of Justice last week, which alleges that the Internet giant has an illegal monopoly in the search and advertising market. He said: “We believe that our products are creating huge benefits, and we will be confident to make our own decisions.” “The focus of our company is still to continue our work to develop search products that people like and value.”
October 29, 6:09 p.m. EDT: Added details of Alphabet’s conference call with investors