YouTube Ad Revenue Slows Down Causing $1 Billion Loss to Alphabet in Q1

Google’s parent company, Alphabet has announced the Q1 revenue growth of 2022. According to the reports, the company has started off 2022 with Q1 revenue that’s up 23 percent from the same period last year, reaching $68 billion. However, with expenses up compared to 2021, its net profit actually dropped to $16.4 billion compared to last year’s $17.9 billion. YouTube ad revenue growth slows down in the first quarter which is the main cause of this loss.

YouTube Ad Revenue Slows Down Causing $1 Billion Loss to Alphabet in Q1

Anyhow, YouTube advertising revenue was also up, reaching $6.86 billion, but showed slower growth as compared the previous years during the pandemic as of analysts expectations. Last year, it had grown up by about 30 percent. This year it also grew up to 20 percent. Moreover, the prices of its shares dropped by about 7 percent in after-hours trading.

Additionally, the research and development costs for the quarter rose by over $1 billion compared to Q1 2021, going from $7.485 billion to $9.1 billion. Google’s search business brought in $39 billion which was $31 billion in the Q1 2021. The overall advertising business, including Search, YouTube, and its various ad networks, managed to pull in $54 billion in the first quarter alone.

Google and Alphabet CEO Sundar Pichai said, “Q1 saw strong growth in Search and Cloud, in particular, which are both helping people and businesses as the digital transformation continues. We’ll keep investing in great products and services, and creating opportunities for partners and local communities around the world.”

During the quarter, Google halted much of its Russian operations due to the invasion of Ukraine. Revenue growth in the European region, which also includes the Middle East and Africa, slowed to 19% in the first quarter from 33% a year earlier.

Check Also: Alphabet’s Profit Increased 89% For the Year 2021 and Ufone YouTube Packages – Hourly, Daily, Weekly and Monthly

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Onsa Mustafa

Onsa is a Software Engineer and a tech blogger who focuses on providing the latest information regarding the innovations happening in the IT world. She likes reading, photography, travelling and exploring nature.

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