Jul 31, 2020 11:24:00

Even in the new corona epidemic, YouTube advertising revenue increased slightly, while Google search revenue fell 10%

by

BRICK 101

Google's parent company Alphabet has released its second quarter 2020 financial report. Due to the pandemic of the new coronavirus and the economic stagnation of society as a whole, advertising revenue on YouTube and Google search has been stagnant and declining, and the revenue of Alphabet as a whole has been declining for the first time.

Alphabet Announces Second Quarter 2020 Results
(PDF file) https://abc.xyz/investor/static/pdf/2020Q2_alphabet_earnings_release.pdf

YouTube Q2 Ad Revenue Growth Slows, Google Search Sales Fall 10%-Variety
https://variety.com/2020/digital/news/youtube-google-q2-ad-revenue-coronavirus-1234721162/

Alphabet (GOOGL) earnings Q2 2020
https://www.cnbc.com/2020/07/30/alphabet-googl-earnings-q2-2020.html

Google's Q2 cloud revenue climbs over 43% | ZDNet
https://www.zdnet.com/article/googles-q2-cloud-revenue-climbs-over-43/

According to the announcement, Alphabet sales in the second quarter were 38.3 billion dollars (about 4 trillion yen), down 2% from the same period last year. Net income was $6,960 million. Analysts expected the second-quarter earnings to be $37.36 billion (3.9 trillion yen), with net income per share of about $8.34 (about 870 yen).

Since Google and YouTube are mainly made up of advertising revenue, companies have reviewed advertising placements due to the economic stagnation, YouTube traffic has increased in April 2020 while YouTuber revenue has decreased What had been done was already reported.

YouTube traffic has increased, but YouTuber's income has plummeted-GIGAZINE

Despite being affected by the pandemic, YouTube's advertising revenue grew slightly by 5.8% year-on-year to $3.81 billion, according to Alphabet's announcement. However, it was down 5.7% compared to the first quarter, which recorded advertising revenue of $4.04 billion (about 422.0 billion yen).

In addition, revenue from Google's search engine decreased by 9.8% year-on-year. If you graph the revenue of Google Ads, you can see that the graph of total revenue (left) has turned downward in 2020 and the growth rate of advertising revenue (right) has dropped significantly.

Google says it is looking at 'gradual improvement in advertising sales' in July, but Alphabet's CFO Ruth Polat said 'It is too early to say that we are out of difficulty'. I am.

On the other hand, the revenue of the cloud division including Google Cloud Platform (GCP) and G Suite was 3,070 million dollars (about 313.0 billion yen), an increase of 43% from the same period last year.

'GCP maintained the strong revenue growth it achieved in the first quarter, which outpaced the overall cloud movement. Overall, overall cloud revenue growth in the second quarter was higher than in the first quarter. The lack of growth is likely due to the price increase of G Suite, which was introduced in April last year,' explains Polat.