Google reported a “strong momentum” in advertising revenue from search and YouTube for the December quarter.
Advertising was up more than 10% in the quarter to $US72.461 billion.
Search was $US54.034 billion and YouTube $US10.473 billion.
However, overall revenue missed market expectations and the company reported it planned to spend more than expected on capital projects.
The company’s shares were down about 8% in after hours trade.
Overall revenue was up 12% to $96.5 billion in the December quarter, slightly weaker than the 13% growth reported in the same quarter last year.
Google said it planned $US75 billion spend on infrastructure to support AI research and integration.
Sundar Pichai, CEO, said the “strong” quarter was driven by leadership in AI and momentum across the business.
“We are building, testing, and launching products and models faster than ever, and making significant progress in compute and driving efficiencies.
“In Search, advances like AI Overviews and Circle to Search are increasing user engagement.
“Our AI-powered Google Cloud portfolio is seeing stronger customer demand, and YouTube continues to be the leader in streaming watch time and podcasts.
“Together, Cloud and YouTube exited 2024 at an annual revenue run rate of $110 billion.
“Our results show the power of our differentiated full-stack approach to AI innovation and the continued strength of our core businesses.
“We are confident about the opportunities ahead, and to accelerate our progress, we expect to invest approximately $75 billion in capital expenditures in 2025.”
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