Alphabet’s Q1 Earnings Shows How Google Makes Profit From Startups
google

Alphabet's Q1 Earnings Shows How Google Makes Profit From Startups And Sales

Google garnered a big profit from its Uber and Airbnb investments

https://dk2dyle8k4h9a.cloudfront.net/Alphabet\'s Q1 Earnings Shows How Google Makes Profit From Startups And Sales

Alphabet, the Google’s parent company shared it's Q1 2018 earnings and reveals the boosting figures from sales and startup investments. According to the first quarter earnings call, the company has raised $9.51 billion of revenue comparing to last year's $5.4 billion. With this quarter venue increment, the company’s overall revenue reached to $31.15 billion from $24.75 billion which was recorded a year ago. However, the growth of 5 percent in operating margin still missed the expectation due to increased expenses of the company. 

The total revenue hike of the company has been pushed by different segments accordingly. From advertising business, Google has generated $27 billion in the Q1 compared to the $21.4 billion which was the figure of the year-ago quarter. On the other, the Google’s network section has contributed $4.6 billion up from the $4 billion in the previous year’s Q1. Alphabet has also added Nest, the smart-home device maker under the Google’s leadership. This means the sales profit of the device makers also been calculated under Google's collection. The profits from Nest is accounted as ‘Other Bets’. 

With the addition of Nest, the revenue from Other Bets has hiked up to $150 million from $131 billion in the year-ago quarter and also experienced fall in operating loss from $703 million to $571 million. 

Google was successful in driving a substantial amount of profit from its startup investment like Uber and Airbnb. Collectively the company has generated $2.4 billion from its both the startup investment. In spite of gains, Google has heavily spent the capital on different services and products last quarter. This includes spending $1.1 billion for acquiring 2,000 employees in Taiwan from HTC Corp and buying streaming rights for YouTube’s new TV service. In addition, at the Google centers, there were installations of new powerful computers, Google assistant helper, and another service within the Google Cloud Storage

Google investors are highly expecting from ‘other bets’ generated revenue this year. As the other bets also include Waymo, self-driving service which can bring a noticeable profit the company’s collection once its services hit the market. 
 

Akash Singh Chauhan
Written By
Akash Singh Chauhan

Akash Singh Chauhan is a senior writer at MobileAppDaily and he mainly covers all the latest happenings and tweaks in mobile app technology. Being an Engineering graduate he is always compelled to the technology and tries to discover new trends in the tech world. Along with any tech news he also never misses a single episode of ‘Dragon Ball’.

Top Companies

01.
InMobi
Singapore
02.
Dot Com Infoway
New York, USA
03.
M&C Saatchi Mobile
New York City, USA
04.
Techmagnate
New Delhi, India
05.
Fetch
London, UK
View full report

Latest Articles

google

Google Maps Is Removing The Calorie Meter Feature After People Dislikes It

Joshua Anderson 4 min read  

Google is pulling back its calorie meter feature from Google Maps after user criticized it. The feature was added by the company to count calories user burn while walking down a route. It turns out the health benefited feature was not appreciated by the users and Google will call it off tonight.

google

A Quick Dive into Google's Android O Developer Preview

Eric Jones 4 min read  

As we know Google never ceases to amaze us with its new & innovative additives to the technology. On Tuesday Google launches its highly awaited Android ‘O’ (Oreo-still a guess) for the developers. This latest version of the Android platform is exclusively roll over for the developing

google

Google Offered Android Changes To EU In 2017

Meenakshi Mamgai 4 min read  

A few days back, we have heard that European Union announced $5.1 billion antitrust fine on Google. As per the reports, EU may have characterized the fine as a punishment for an uncompromising Google. However, the reality might be different. Yes, Bloomberg sources have declared that Google agreed to

google

Google Maps Get New Interface, Clubbed With Features

Vikram Khajuria 4 min read  

Google I/O 2018 was an absolute event for the developer community and other tech enthusiasts. The event showcased many of the future undertakings by Google, and one of such program included Google Maps redesign with 'Explore' and 'For You' tabs.The “Explore” tab is fi