Key Takeaways:
- YouTube’s ad revenue grew to $8.93 billion in Q1 2025, up 10.3% from last year.
- YouTube Music and Premium now have over 125 million subscribers worldwide.
- YouTube expanded its Premium Lite option to the U.S., priced at $7.99/month.
- YouTube dominates TV viewing in the U.S., with over 1 billion monthly podcast users.
- Alphabet’s total revenue reached $90.2 billion, with a 12% increase.
- Alphabet is investing heavily in AI across its products, including YouTube.
YouTube just shared some big news! During their earnings call, they revealed that ad revenue jumped to $8.93 billion in the first quarter of 2025. That’s a 10.3% increase from last year. While it’s slightly below what analysts expected ($8.97 billion), YouTube is still doing really well. Plus, they make money from more than just ads—subscriptions are a big part of their success.
YouTube Celebrates 20 Years
CEO Sundar Pichai reminded everyone that this year marks YouTube’s 20th anniversary. The first video, a 19-second clip, was uploaded way back in 2005. Today, YouTube is a global powerhouse. Pichai said, “From that single upload, YouTube has grown into a worldwide phenomenon.”
Subscriptions Are Booming
YouTube’s subscription services are thriving. Music and Premium now have over 125 million subscribers, including those on free trials. This growth aligns with Alphabet’s bigger plan to expand subscriptions. Across all their services, Alphabet now has over 270 million paid subscribers.
To make subscriptions more appealing, YouTube introduced Premium Lite in the U.S. This cheaper option costs $7.99/month, compared to $13.99 for standard Premium and $10.99 for Music. Premium Lite lets users watch videos without ads, though it doesn’t include all the features of the full Premium service.
TV Viewing and Podcasts on the Rise
YouTube is also becoming a major player in TV. Pichai mentioned, “TV is the main device people use to watch YouTube in the U.S.” According to Nielsen, YouTube has been the top streaming platform for watch time in the U.S. for two years straight.
In addition to video, YouTube’s audio content is growing. They now have over 1 billion monthly podcast users. This shows how YouTube is expanding beyond just videos to become a go-to platform for all kinds of content.
YouTube Might Soon Be the Biggest Media Company
Research from MoffettNathanson suggests that YouTube could surpass Disney as the largest media company by revenue this year. That’s pretty impressive for a platform that started with a simple video upload.
Alphabet’s Strong Financial Performance
Alphabet, Google’s parent company, also had a strong quarter. Their total revenue rose 12% to $90.2 billion. This growth shows how well their businesses, including YouTube, are performing.
- Revenue Growth: Alphabet’s overall revenue increased 12% to $90.2 billion.
- Google Services: This includes YouTube ad revenue, which grew 10% to $77.3 billion.
- Operating Income: Up 20% to $30.6 billion, with a higher operating margin of 34%.
- Net Income: Rose 46% to $34.5 billion.
- Earnings Per Share: Increased 49% to $2.81.
Pichai said, “We’re happy with our strong Q1 results. They show growth and momentum across our business.” He also highlighted Alphabet’s focus on AI, saying their unique approach is driving this success.
Alphabet Invests in AI
Alphabet is betting big on artificial intelligence (AI). All 15 of their products with over 500 million users now use Gemini models, their AI technology. This includes YouTube, where AI helps recommend videos and improve the user experience.
More Cash for Shareholders
Alphabet is sharing its success with shareholders. They increased their quarterly dividend by 5%, paying $0.21 per share. Plus, they authorized buying back up to $70 billion of their own stock. This shows they’re confident in their future.
The Future of YouTube
As YouTube turns 20, it’s clear the platform is still growing. From ads to subscriptions, TV viewing to podcasts, YouTube is becoming a one-stop shop for all kinds of content. With strong financial results and big investments in AI, the future looks bright for both YouTube and Alphabet.
This wraps up another exciting quarter for YouTube and Alphabet. Stay tuned to see what they do next!
