YouTube advertising sales for the first three months of 2022 grew 14%, to reach $6.9 billion — missing Wall Street expectations and representing a major cooling off from the torrid pace the video giant had seen during the COVID pandemic.
By comparison, YouTube’s ad revenue growth was 49% in the year-ago period and increased 46% for the full year 2021. Alphabet, the parent company of Google and YouTube, reported total revenue for Q1 of $68.01 billion, up 23%, and net income of $16.44 billion (or $24.62 per share), falling shy of Wall Street expectations.
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Financial analysts on average expected Alphabet to post Q1 revenue of $68.1 billion and EPS of $25.96, per Refinitiv. YouTube ad revenue was projected to hit $7.48 billion in the quarter, according to FactSet.
Shares of Alphabet were down 4% in after-hours trading on the miss (after closing down 3.6% in regular trading).
Sundar Pichai, CEO of Alphabet and Google, highlighted strong growth in Google Search and Google Cloud revenue, “which are both helping people and businesses as the digital transformation continues,” he said in announcing Q1 results. “We’ll keep investing in great products and services, and creating opportunities for partners and local communities around the world.”
More to come.