The losses were more than offset by its core search and advertising businesses
Alphabet, the parent company of Google, racked up US$3.6 billion in losses last year on investments in "big bets" such as self-driving cars and Internet balloons.
The company was known to be spending heavily on these items but revealed actual figures for the first time Monday when it broke out results separately for its core Google business and for big-bet investments, which it also calls moonshots.
The losses for those items were much higher in 2015 than in 2014, when they totaled $1.9 billion. And they brought in just $448 million in revenue last year.
Still, Alphabet says it stands to reap rich rewards in the long term if any of those bets pay off. They also include its investments in smart thermostat company Nest, Google Fiber, and medical science, including efforts to build a smart contact lens that measures glucose levels.
The losses from Alphabet's big bets were more than offset by the profits made by Google and its core advertising and search businesses. Google generated $23.4 billion in operating income last year, on $74.5 billion in revenue.
Google reorganized itself last year under a holding company called Alphabet, which consists of Google and then other business units that place long term bets on emerging areas. It said the move would provide more visibility into how its core search and ad businesses are doing.
Alphabet as a whole reported strong results for last quarter. Revenue for the three months to Dec. 31 was $21.3 billion, up 18 percent from the year before and higher than the $20.8 billion analysts had been expecting, according to a poll by Thomson Reuters.
Net profit for the quarter rose to $4.9 billion. On an adjusted basis, net earnings per share was $8.67, up 28 percent and much better than the $8.10 analysts had forecast.
In this episode of Conversations over a Cuppa with CMO, ABC's director of audiences, Leisa Bacon, shares how she's navigated the COVID-19 crisis, the milestones and adaptability it's ushered in, and what sustained lessons there are for marketers as we start to recover.
In my first article in this MYOD [Make Your Organisation Data-Driven] series, I articulated a one-line approach to successfully injecting data into your organisation’s DNA: Using a Dataset -> Skillset -> Mindset framework. This will take your people and processes on a journey to data actualisation.
For businesses and advertiser categories currently experiencing a slowdown in consumer activity, now is the optimal time to get started on projects that have been of high importance, but low urgency.
The effects of the coronavirus slammed the brakes on retail sales in pubs, clubs and restaurants. Fever-Tree’s Australia GM Andy Gaunt explains what they have learnt from some tricky months of trading
Zero proof spiritsUsa since 2011 www.arkaybeverages.com🤪🤟
Sylvie
How this alcohol-free spirits brand rode the health and wellness wave
okay this a good newsmaybe i gonna try it
kenzopoker1
CMO's top 8 martech stories for the week - 9 July 2020
Very insightful. Executive leaders can let middle managers decide on the best course of action for the business and once these plans are ...
Abi TCA
CMOs: Let middle managers lead radical innovation
One failing brand tying up with another failing brand!
Realist
Binge and The Iconic launch Inactivewear clothing line
I am 56 years old and was diagnosed with Parkinson's disease after four years of decreasing mobility to the point of having family dress ...
Nancy Tunick
The personal digital approach that's helping Vision RT ride out the crisis