3 ms·
I have a better source now, estimating Google's gross profit margin for YouTube at 38%: https://mannhowie.com/youtube-valuation https://mannhowie.com/youtube-va
by nl 4y ago
I have a better source now, estimating Google's gross profit margin for YouTube at 38%: https://mannhowie.com/youtube-valuation https://mannhowie.com/youtube-valuation
Basically:
- 55% of Ad revenue goes to creators
- 7% of revenue on storage and data center costs (based on Google's 2019 annual report that reported how they depreciate their data center assets).
On top of that there are operating expenses, so operating profit margin is 3-18% (this is assuming their op-ex is much higher - almost twice - Netflix, but comparable to Facebook.)