Both Google Ads and Microsoft Advertising revenue were up big this past quarter, both up about 10%. Comparing it to last quarter, Google was only up 3% and Microsoft was up 8%. The previous quarters before that were much worse. So it seems like things are looking up on the ad revenue side.
GOOG Earnings
Google now seems to be really getting back to itself with its ad revenue showing a big increase in ad revenue year over year. Google had an 11% increase in revenue year over year and a 9.5% increase in ad revenue year over year, plus a 25% increase in profit
The previous quarter was going in the right direction both in terms of overall revenue and ad revenue with a 3% increase in ad revenue and 7% in overall revenue. With three quarters ago being down and then two quarter being flat, we are now finally showing growth.
Here is a chart plotting Google's overall revenue, then ad revenue and then profit over the past several quarters:
Here is the snippet from the earnings report:
Sundar Pichai, CEO, said: “I’m pleased with our financial results and our product momentum this quarter, with AIdriven innovations across Search, YouTube, Cloud, our Pixel devices and more. We’re continuing to focus on making AI more helpful for everyone; there’s exciting progress and lots more to come.”
Ruth Porat, President and Chief Investment Officer; CFO said: “The fundamental strength of our business was apparent again in Q3, with $77 billion in revenue, up 11% year over year, driven by meaningful growth in Search and YouTube, and momentum in Cloud. We continue to focus on judicious capital allocation to deliver sustainable financial value.”
MSFT Earnings
Microsoft overall ad revenue was up 13% year over year with net income up 27% year over year. Specific to Microsoft Advertising the revenue was up 10% year over year, and the previous quarter was up 8%. So while the ad revenue growth was declining, it is finally increasing again.
Microsoft wrote, "Search and news advertising revenue excluding traffic acquisition costs increased 10% (up 9% in constant currency)."
This chart shows the percentage growth quarter to quarter over time, where it was as high as 40% but now down to 10% but it is up from its 8% growth low:
"With copilots, we are making the age of AI real for people and businesses everywhere," said Satya Nadella, chairman and chief executive officer of Microsoft. "We are rapidly infusing AI across every layer of the tech stack and for every role and business process to drive productivity gains for our customers.”
“Consistent execution by our sales teams and partners drove a strong start to the fiscal year with Microsoft Cloud revenue of $31.8 billion, up 24% (up 23% in constant currency) year-over-year,” said Amy Hood, executive vice president and chief financial officer of Microsoft.
