Google, Univision Partnership Example Of Accelerated, Sustainable Growth For Everything Digital

Google and Univision announced a partnership on Monday that enables the company to deepen relationships with Hispanic audiences and create market-defining content for the next generation of Spanish-speaking viewers.

The partnership is an eight-year, $1 billion-plus contract that includes Google Cloud, YouTube and Search.

It’s part of the reason why analysts expect the company to “smash sales records” when Alphabet reports earnings today, led by trends during COVID-19 that continue to accelerate. Advertising, cloud services and YouTube are expected to lead the increase.

Analysts surveyed by FactSet anticipate first-quarter sales of about $51.51 billion and profit of $10.72 billion, up from $41.16 billion in revenue and $6.84 billion in profit in the year-ago quarter, The Wall Street Journal reported today.

Research from FactSet is not the only indication that Alphabet, Google’s parent company, will exceed expectations, even as regulators attempt to break up the company and slow its power gains.

Univision also will collaborate with other Google product areas such as Android, Android TV OS, YouTube, Google Play, Google Ad Manager, and Google Search to enhance its capabilities and improve the overall viewer experience.Google will help Univision consolidate multiple digital distribution platforms, modernize its production systems, create a new customer data warehouse, and migrate key enterprise applications to Google Cloud.

Then apply artificial intelligence (AI) and machine learning (ML) across its content libraries to provide customers to support personalized recommendations.

Prior to this announcement, analyst at Baird Equity Research Colin Sebastian wrote in a research note: “Near term, checks throughout Q1 -- and in particular March, confirmed not only strengthening ad spending, but also the benefits from strong retail/e-commerce vertical and improving travel trends. Despite higher consensus estimates recently, we still see upside potential for both GOOGL and FB through 2021.”

Sebastian pointed to core advertising growth, improving travel and events trends, resurgence in video ads on YouTube, stronger Google Cloud (GCP), and the benefits of stimulus -- which could all drive further upside in shares.

Aaron Kessler, analyst at Raymond James, in a research note published this week wrote: “Google's DV360 retook the lead in DSP share from [The Trade Desk], but both remain well ahead of competitors.” 

Trip Chowdhry, managing director at Global Equities Research, expects earnings to reflect YouTube’s strength in becoming a foundation for influencer marketing.  “1 Million Subscribers, the number of Pre-roll ads in some geographies have increased to 4 from current levels of 2,” he wrote in a published research note. “Strong growth continues in Asia, up ~52% y-o-y, according to our proprietary engagement tracker.”



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