Google reported an additional 25 million paid subscriptions in the recent quarter, reaching a total of 350 million across its services, according to Alphabet’s Q1 earnings report. This growth is attributed to YouTube and Google One plans. While details on Gemini subscribers weren’t specified, Google noted a 40% increase in enterprise paid users, maintaining over 750 million users overall, as seen last quarter.
YouTube ad revenue fell short of expectations, garnering $9.88 billion this quarter, slightly below the $9.99 billion anticipated by Wall Street, despite year-over-year growth. The shift to YouTube Premium subscriptions is impacting ad revenue, with last year’s revenue exceeding $60 billion from both ads and subscriptions. This quarter’s ad revenue was $9.9 billion, up 11% year-over-year but below analyst projections.
Alphabet’s stock gained after surpassing revenue expectations with a total of $109.9 billion, highlighting strong cloud growth, which surpassed $20 billion.