Reporting its quarterly earnings report for the first time, ever since it transitioned from Google to Alphabet, the company has announced revenues of $21.33 Billion and $8.67 earnings per share for the fourth 2015 quarter.
This means, that the company has beaten Wall Street estimates of $20.77 Billion and $8.08 EPS by a good enough margin. Interestingly, 99% of Alphabet’s revenues came from Google and other “core” businesses, the details of which can be found here.
As detailed by the company earlier, Alphabet has reported its quarterly earnings in two categories —
- Google: “Search, Ads, Commerce, Maps, YouTube, Apps, Cloud, Android, Chrome, Google Play as well as hardware products we sell, such as Chromecast, Chromebooks and Nexus.”
- Other Bets: “Access/Google Fiber, Calico, Nest, Verily (formerly Google Life Sciences), GV (formerly Google Ventures), Google Capital, X (formerly Google [X]) and other initiatives.”
In terms of Google’s core advertising business, cost-per-click fell 13% year-over-year, while paid clicks increased 31% year-over-year. However, currency drops this year affected Google’s overall revenue increase, which stands at 18% year-over year, and could have risen to as much as 24%. In monetary terms, this resulted in close to $1 Billion worth of loss in revenues.
The earnings also made Alphabet, the most valuable company as of now, with a market capitalisation of about $570 billion in after-hours trading. Apple (APPL), by comparison, is now valued at $534.66 billion, while Microsoft (MSFT) is worth $432.72 billion; Oil major Exxon (XOM) stands at $317.59 billion; while social networking giant Facebook (FB) is at $327.41 billion.
These ranking could obviously change, considering that stock prices continue to change after company’s earnings report. Nevertheless, Alphabet still managed to take that crown from Apple — an incident which last happened in 2009 when it was still Google.
These earnings are also significant, considering that we’ve got a first of its kind insight into Google’s other hardware stunts it has been pulling off for years. And the results, well they are disappointing as expected. And why it was that ? Well, for starters, these other bets generated $448 million in revenue in 2015 but Alphabet’s operating loss for those bets was almost $3.6 billion.
Revenues in those ‘Other Bets’ segments is largely drive by Nest, Google Fiber and Verily (erstwhile Google Life Sciences).
For those of us though, who were looking to get a peak on Google’s self-driving car project and the internet-spreader, Project Loon — nothing is there in the earnings report individually, largely because of the sheer amount of bets Alphabet has, in its “other bets” segment.
