In a blowout quarter, YouTube saw its advertising revenue soar to $9.2 billion in Q4 of 2023, up from just below $8 billion in the year prior and the quarter prior, and in line with what Wall Street was expecting.
In a statement, Alphabet CEO Sundar Pichai highlighted YouTube’s performance, noting that the video platform is “already benefiting from our AI investments and innovation. As we enter the Gemini era, the best is yet to come.”
YouTube’s quarter indicates that the video platform is firmly back in growth mode after a quiet year last year.
Overall, YouTube parent company Alphabet reported revenues of $86.3 billion in the quarter, up 13 percent year-over-year. It also reported net income of $20.7 billion. Total advertising revenue, including Google search, was $56.5 billion in the quarter. Total Google ad revenue was just below Street expectations, causing Alphabet’s share price to slide after hours.
YouTube, under CEO Neal Mohan, has made generative AI a top corporate priority, rolling out AI tools for creators and advertisers to use, while also introducing platform rules to crack down on inappropriate content like deepfakes.
YouTube is also in business with the NFL, serving as the new home for the NFL Sunday Ticket streaming service.