Google-owner Alphabet shares details of YouTube's ad business for the first time.
Google's parent company has published details of its YouTube and cloud business for the first time, as the firm's advertising business continues to slow.Overall Alphabet revenue increased by 17% year-on-year to $46bn - the slowest rate in more than two years.Alphabet said it earned $2.6bn in cloud revenue for the most recent quarter - compared to almost $10bn at Amazon. However it is fast-growing, rising more than 50% year-on-year.
Alphabet and others make money in cloud computing by charging companies to host their data remotely, rather than firms maintaining their own servers.Although growth missed analyst forecasts, Alphabet's business remains strong, said Nicholas Hyett, equity analyst at stockbroker Hargreaves Lansdown. "It's always important to put these sorts of misses into perspective," he said."The core businesses, like Search and YouTube, continue to generate prodigious quantities of cash."Alphabet reported quarterly profits of almost $10.7bn, up 19% year-on-year, while costs rose 18% to $36.8bn, as the firm invested in data centres and hired new staff.
Mr Pichai said the firm sees opportunity to make even more money off its YouTube adverts, including by targeting them more precisely.
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