YouTube grew its quarterly earnings steadily throughout 2021. But the streak seems to have come to a halt in Q1 2022. MoneyTransfers’ analysis of its income shows that it posted gross revenues of $6.9B; 20% less earnings compared to its Q4 2021 returns of $8.63B.
MoneyTransfers CEO Jonathan Merry had this to say about the data, “YouTube’s lean earnings are a result of the depressed growth in ad revenues. Again the platform’s overall growth has slackened and the suspension of its services in Russia where it serves over 100M users has impacted its earnings.”
How has YouTube’s loss impacted Alphabet’s revenues?
Following YouTube’s declining earnings, Alphabet recorded a drop in its quarter on quarter (QoQ) income. The firm fell short of its projected earnings of $68.1B, realizing $68B instead. Although it grew its revenue by 23%, that figure fell 14% short of its Q1 2021 figures.
The decline in YouTube’s earnings impacted Alphabet’s net profits too. Google’s parent company registered net profits of $16.44B. In contrast, it had earned $17.93B in Q1 of 2021. Thus it shed $1.5B or 8% in QoQ terms.
The Shorts effect
While YouTube struggled, its offshoot Shorts is thriving. Shorts is a 60-second TikTok alternative that’s ad-free. The platform had grown its viewership fourfold from a year ago. Currently, it has a viewership of over 30B a day.
Alphabet is looking to monetize Shorts and has 30B reasons to do so. Its daily views are 6 times that of YouTube. It, therefore, has the potential to eclipse YouTube’s revenues.
Read the full story here: YouTube’s Q1 2022 revenues plunge 20% from Q4 2021 figures