Alphabet’s stock rises as revenue from Google increases 22% | Android Central
Google posts strong revenues, but Alphabet continues to lose money with its “Other Bets.”
In its earnings results for Q1 2017, Google’s parent company Alphabet announced that it netted $22.8 billion in revenue, an increase of 22% from the same period a year ago. Net profit at $5.42 billion was 29% more than Q1 2016.
Unsurprisingly, Google contributed to a vast majority of the earnings. Overall revenue from Google came in at $24.5 billion, a YoY increase of 22%. The revenue includes money from advertising — including search, display, and YouTube ads. Mobile ads continue to lead the way for ad revenue, and although Google’s cost per click fell by 19%, paid clicks were up 44% from Q1 2016.
Revenues from Google’s non-advertising businesses — which include Pixel sales, Google Play, and the company’s cloud platform — rose 49% to $3.1 billion.
Alphabet is continuing to lose money on its Other Bets, which posted a loss of $855 million. Revenue, however, increased 48% to $255 million from the same period a year ago. With the business unit focusing on long-term bets and moonshots, Alphabet isn’t necessarily worried about losing money in the interim. From CFO Ruth Porat:
Our excellent results represent a terrific start to 2017, with revenues up 22% versus the first quarter of 2016 and 24% on a constant currency basis. We clearly continue to benefit from our ongoing investments in product innovation and have great momentum in our new businesses across Alphabet.
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