The word Google may be synonymous with the search engine but there are lots of other businesses and research areas in which the tech giant has been operating. For a better representation of the same, Google had become Alphabet last year.
And now Alphabet has announced that it would announce the results of its fourth quarter on February 1 under two categories. The first one includes the core Google areas including the search, ads, YouTube, GMail, Android, Maps, Chrome, Google Play, hardware products such as ChromeBooks, ChromeCast, Nexus and its virtual reality offerings.
The second category, Other Bets, will include the other areas such as Google Fiber/Access, Calico, Nest, life science division Verily (formerly known as Google Life Sciences); financial divisions GV (once known as Google Ventures) and Google Capital; and the research division X, better known as Google X.
In a blog post, Chief Executive of Alphabet, Larry Page wrote,
Fundamentally we believe this (structure) allows us more management scale, as we can run things independently that aren’t very related.
He further added that the new format of results will allow them to take the “long-term view” of its holdings and invest “at the scale of the opportunities and resources we see.”
This will also be the first time that investors will get an accurate picture of the other Google businesses outside its core search based business. Previously, the consolidated report only showed the total financial performance of the company which included every business area without any demarcations.
However, Alphabet has said that there would be no changes to the consolidated financial reporting but there will be some changes in terms of the splitting of revenues among different areas.
Alphabet will disclose its financial results of the quarter, that ended December, next Monday. Many people including the investors are keen to know the performance of the company especially because the company is reportedly quite close to displacing the Apple as the most valuable U.S. tech company.
And since Apple has already registered a record-breaking performance, it will be interesting to see how Alphabet fares up against it.