The Alphabet-owned video platform, YouTube experienced double-digit growth in Q2 2024, reporting $8.66 billion in advertising revenue, marking a 13% increase compared to the same period last year.
However, it missed the analyst expectations of $8.93 billion, as reported by FactSet’s StreetAccount. Furthermore, YouTube’s ad sales had surged by 21%, reaching $8.1 billion in the previous quarter. It’s important to note that these numbers exclude revenue from YouTube’s subscription services. Meanwhile, according to estimates from media-measurement firm iSpot.tv. U.S. network primetime TV ad spending decreased by 2.8% in the first half of 2024.
Additionally, by reporting revenue of $84.74 billion, a 13.6% increase year-over-year Alphabet exceeded analyst expectations in Q2. The company’s earnings per share (EPS) stood at $1.89. According to financial data provider LSEG, these figures surpassed Wall Street’s consensus estimates of $84.19 billion in revenue and an EPS of $1.84.
Alphabet CEO Sundar Pichai said, “Our strong performance this quarter highlights ongoing strength in Search and momentum in Cloud. We are innovating at every layer of the AI stack. Our longstanding infrastructure leadership and in-house research teams position us well as technology evolves and as we pursue the many opportunities ahead.”
According to Nielsen’s total TV and streaming report for the U.S., YouTube has maintained the leading share in streaming watch-time on American TVs every month since February 2023.
In Q2, Google’s Cloud division reported a 29% increase in revenue, reaching $10.35 billion, while operating income almost tripled to $1.17 billion. Meanwhile, Google was in negotiations to acquire Israeli cloud-based cybersecurity firm Wiz in a deal valued at $23 billion. However, Wiz chose to withdraw from the talks and is now considering an IPO, according to CNBC.