Advertising revenue at YouTube reflected the video giant’s recent momentum, rising 12% in the third quarter compared with the year-ago period.
The haul of $8.92 billion in the period ended September 30 came as many ad sellers, particularly traditional media companies reliant on legacy TV, have been reporting flat or low-single-digit growth. Most media companies will be reporting quarterly numbers over the next two weeks, with YouTube now setting a high bar.
The performance of YouTube helped its corporate parent, Alphabet, post total revenue growth of 15%, in the quarter to reach $88.3 billion. Earnings per share jumped to $2.12 from $1.55 in the year-earlier quarter. Wall Street analysts had expected earnings of $1.84 a share and revenue of $86.4 billion.
Over the past four quarters, YouTube has topped $50 billion in ad revenue, a new milestone for the two-decade-old digital outlet. The gains on the top line correspond with surging viewership, with Nielsen tracking recent high points in YouTube’s overall viewing via TV screens. The video platform also has seen an uptick from its pay-TV arm, YouTube TV, which is now one of the top U.S. operators at north of 8 million subscribers.
Shares in Alphabet, which have risen more than 20% in 2024 to date, perked up 4% on the results, passing the $178 mark.
Gains from the company’s core search engine, which has been enhanced with artificial intelligence, also made a significant contribution to the quarterly report.
Looking to keep pace with the AI gains of Big Tech rivals, Google has been spending heavily in the space, with capital expenditures in the third quarter leaping 62% from the year-ago frame to hit $13.1 billion.