Google’s popular video-sharing platform, YouTube, is making waves in the social media landscape, surpassing 2 billion logged-in monthly users for its YouTube Shorts feature. The significant milestone has given YouTube an edge over its competitors, including TikTok and Instagram Reels. This remarkable increase comes after the platform announced 1.5 billion monthly logged-in users for YouTube Shorts just last year.
YouTube’s Q2 2023 Results Surpass Expectations
During the second quarter of 2023, Google reported impressive financial results for YouTube, with a revenue of $7.67 billion generated through ads. This figure not only beat analyst estimates but also represented a commendable 4% year-on-year growth. To enhance its premium ad offering, YouTube Select, the company is set to introduce 30-second unskippable ads.
Diversified Offerings and Partnerships
Apart from its thriving advertising revenue, YouTube is focusing on expanding its offerings. In a bid to cater to sports enthusiasts, the platform began offering pre-sales of the NFL Sunday Ticket subscription, set to stream in the Fall. Additionally, YouTube has struck a notable deal with Warner Bros. Discovery to provide a Max-NFL Sunday Ticket bundle on YouTube TV, further diversifying its content lineup.
Growing Global Reach and Subscriptions
Google is successfully reaching out to viewers worldwide, with 150 million people engaging with YouTube on Connected TV screens in the United States alone. This indicates a promising trend of global growth for the platform. Although no specific update on the number of paid users was provided during the Q2 2023 earnings call, last year, YouTube had reported a strong user base of 80 million for YouTube Premium and Music combined.
Positive Outlook for Google’s Finances
Google’s impressive quarterly results extended beyond YouTube, with the company reporting remarkable growth in both ad and cloud revenues. The second quarter of 2023 saw the company amassing a staggering $74.6 billion, marking a significant increase from the $69.7 billion earned during the same period in 2022. This positive performance was well-received by investors, as Alphabet shares soared nearly 7% in after-hours trading.
Ruth Porat’s Promotion and Expanded Responsibilities
As part of organizational changes, Ruth Porat, formerly the Chief Financial Officer of Alphabet, has been elevated to the position of President and Chief Investment Officer. With this promotion, Porat will now oversee other divisions within Alphabet, including the self-driving company Waymo, health-focused Verily, and Google Fiber.