YouTube growth helps cement Google Q2 gains

The continued strength of YouTube along with mobile gains helped Google parent company Alphabet to report significant second quarter growth.

Speaking on the company’s Q2 earnings call, Google CEO Sundar Pichai said that YouTube showed “strong momentum” and said that video is the “killer format on mobile”.

Though the company did not break out specific figures for YouTube, Pichai reiterated its claim that YouTube reaches “more 18-34 and 18-49 [year-olds] than any other TV network, broadcast or cable.”

“Every indication we see is that the growth is very, very strong, being driven by mobile, and it’s growing globally as well. Overall, I think engagement is very, very healthy,” he said.

The Google boss revealed that more than 1,000 YouTube content creators are now crossing the 1,000 subscribers mark every day.

He also highlighted the gains YouTube is making in the live video space, with YouTube’s live-stream time up threefold since the beginning of the year.

The service also now supports 360 degrees live video and also the ability for creators to ‘go live’ direct from the YouTube mobile app.

“Earlier in the quarter, we teamed up with BT to live-stream the Champions League and Europa League finals on YouTube in the UK. This special event was UK’s biggest ever live-stream,” said Pichai.

“All these innovations are a big reason why partner revenue has averaged 50% growth over the last three years.”

Overall, for the quarter ended June 30, Alphabet reported a 21% year-on-year increase in revenue to US$21.5 billion, while net income climbed 24% to US$4.88 billion.

Alphabet chief financial officer Ruth Porat said that the primary driver for growth was the increased use of mobile search by consumers and that the company also benefited from solid growth in desktop and tabletsearch as well as continued strength in YouTube and programmatic advertising.

“Our terrific second quarter results, with 21% revenue growth year on year, and 25% on a constant currency basis reflect the successful investments we’ve made over many years in rapidly expanding areas such as mobile and video. We continue to invest responsibly in support of our many compelling opportunities,” said Porat.