That was the key message in today's Alphabet results. Whilst big tech are focussing on AI infrastructure and capabilities as a key growth driver, Wall Street commentators and analysts emphasised cloud business' are still a continued growth driver, particularly in the cyber security space.
"2023 was a year of profound innovation and product momentum"
All segments experienced YoY increases. Highlights include:
- YouTube advertising revenue soared to $9.2 billion up from just below $8 billion in both YoY and prior quarter - in line with Wall Street expectations.
- Alphabet's subscription business is now a $15 billion dollar business with YouTube the key driver of all subscription revenue. YoY the subscription business experienced 23% growth and sees an upside in long term advertising growth. Subscription segments include: Google subscriptions, YouTube Premium, YouTube Music, YouTube TV, NFL Sunday Ticket.
- YouTube is now active in 100 countries, showing real momentum in audience engagement and great feedback from customers. "NFL Sunday has found its perfect home on YouTube". It gave creators new opportunities to create content and feed user engagement across traditional user content and professional sports content."
- As revealed in last week's Netflix results, YouTube is the only true competitor across all of Netflix regions. As Generation Z starts to become financially free from parents, making their own money, and making their own consumer choices, their viewing choices will be a key feature as we firmly step into the era of the content subscription business.
- Overall Alphabet reported revenues of $86.3 billion in Q4 up 13% YoY. Net income of $20.7 billion. Total advertising revenue, including Google search, was $56.5 billion in Q4.
- AI will produce better performing Ads as Gemini will provide a new conversational experience in Google Ads.
- Alphabet incurred mass layoffs last year at a cost of $700 million in Q1 2024 but with 90,000 Google consultants the parent group is focussing on key priorities, winding down non-priorities, and focussing on an infrastructure that supports the growth of AI across all segments.
......The era of the subscription business is truly upon us
Thanks for reading....Susie
Financial Controller | Accounting, Audit, VAT, Taxes, Management accounting, FP&A, Budget, forecast| I help businesses improve performance 50% by streamlining processes, reducing costs, Optimizing Profitability.
1 年Alphabet's Q4 2023 results reflect a year of significant growth and innovation, particularly driven by YouTube's success in advertising revenue and subscriptions. With the subscription business now a $15 billion segment, Alphabet demonstrates its strength in the content subscription market. The expansion of YouTube into 100 countries underscores its growing influence and engagement with audiences worldwide. As Alphabet focuses on AI infrastructure and introduces innovative products like Gemini, it signals a promising future in the era of the subscription business.
Executive. Producer. Creative
1 年Thanks for sharing