Alphabet Announces First Quarter 2016 Results
- Author: Essie Rivera Jan 29, 2017,
Jan 29, 2017, 0:36
Luckily Alphabet is equipped to pay for them, having just reported their fourth quarter revenue results for Q4 of 2016, citing that their fourth quarter was exceptional and that they saw a 22% increase year over year.
This time however, even Alphabet's non-Google properties improved revenue-wise - it reported $262 million revenue from its Other Bets this quarter, which is an improvement over the $150 million from this time previous year. "Advertising revenue growth was driven by mobile search with ongoing strength in YouTube and programmatic [ads]", Alphabet CFO Ruth Porat said in the earnings call Thursday.
Alphabet Inc. (NASDAQ:GOOG)'s profits surged 8% to $5.3 billion for the last quarter, powered by more advertising on mobile phones and YouTube. "Other Bets", Alphabet's catchall term for the companies and projects it's exploring to diversify its revenue streams beyond search and advertising, lost roughly $1.1 billion in the fourth quarter. Following the earnings report, Google's share price fell by almost 3.5 percent in after market hours. Other Bets included the broadband business Google Fiber, home automation products Nest, self-driving technology company Waymo as well as X, the company's research facility that works on "moon shot" ventures.
The company reported $26.06 billion in quarterly revenue, which was more than financial analysts had expected.
Furthermore paid clicks, or clicks on Google ads, surged more than 35%, in contrast with a 33% rise in the third quarter. Investors are keen to figure out how both Google's cloud business and its hardware business, which includes the new Pixel smartphones, the Google Home smart speaker and the Daydream View virtual reality viewer all introduced in November, are doing.
Despite Porat's cost-cutting, capital spending rose substantially, from $1.8 billion a year ago to $2.9 billion in the fourth quarter.
Google CEO Sundar Pichai spoke about three growth areas for the company which include YouTube with their "Red" subscription service and YouTube Original series, they'll be doing more in these areas in 2017. Paid clicks on Google websites jumped 43 from a year ago and 23 percent from previous quarter.
While the losses for its moonshot projects remained essentially unchanged, Alphabet did manage to grow revenue from this division substantially.
The broth in Alphabet's soup is still pretty much Google. Pichai did say that he sees personal computing moving beyond a device or two.