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

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. 
 

MAD Team
Written By
MAD Team

MobileAppDaily host a team of experienced technical writers, industry wizards, and app experts who have an exact knack of content that caters to the needs of the mobile app targeted audience. We strive to bring you the best of tech!

Top Companies

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

Latest Articles

Join our global community 135K Followers
technology

T-Mobile Launches New Cheaper Unlimited Data Plan Without Netflix Bundle

MAD Team 2 min read  

Finally, T-Mobile dropped a cheaper plan for the users that only offers the basic needs of the phone users. After being silent for a long time, the network carrier finally introduced its new plan. The company names its new plan, the ‘T-Mobile Essential’, and the name really represents wh

technology

Google Releases Android 9 Pie Exclusively For Android P Devices

MAD Team 4 min read  

Google finally grant the Pixel users access to the most awaited Android 9 via the beta program before its official launch. Following its every year pattern the tech giant released the latest Android upgrade for its flagship smartphones. In its blog post today Google announced that the Android 9 Pie

technology

Google To Nurture Gaming Industry Though Indie Games Accelerator Program In Asia

MAD Team 4 min read  

Google is launching the Indie game accelerator in Asia with an aim to boost the top gaming startups to find a considerable place in Google Play. The gaming industry is emerging like never before and it now contributes more than 40% of game installs on Google Play. Gamers are adapting to the smartpho

technology

Factors Driving Mobile Growth In E-Commerce

MAD Team 4 min read  

It’s undeniable that mobile use is up in the e-commerce realm. People are using their trusty handheld devices to browse, but also increasingly to actually buy products. The desktop is no longer the automatic default; people are reaching for their phones to do research and complete transactions