On Monday, Alphabet posted their first earnings as the new company. Prior to this, all earnings were announced as Google. For the quarter ending on December 31st, 2015, the company posted $21.3 billion in revenue. That’s up from $18.1 billion in the same quarter, a year prior. That’s an 18% increase year-over-year. GAAP operating income was $5.3 billion, compared to $4.3 billion in the year prior, making a 25% increase. Net income for the quarter was $4.9 billion and that is also up from $4.6 billion the year before.
For the year, Google posted revenues of $74.5 billion, that is up 13% year-over-year. Operating income was $23.4 billion, up from $19 billion the year before. Other Bets are coming in at $448 million compared to $327 million in 2014. Other Bets include things like Google Ventures, X, Calico, Google Fiber, Nest and more. Due to Google breaking up a bit under the Alphabet umbrella, it makes it a bit difficult to compare this earnings report to previous earnings. However, going forward it should be much more clear how different parts of Alphabet are performing each quarter. Other Bets did see an operating loss of around $3.6 billion in the quarter, that’s up from $1.9 billion in Q4 2014.
Google’s websites made $14.9 billion in the quarter, that’s a 20% increase from $12.4 billion the year before. Google network members’ websites made $41. billion in the quarter, which is up 7%, Google advertising revenues were $19 billion in the quarter, also up by 17%. Google Segment Revenues were $21 billion, an increase from $18 billion the year before. For the full year, Google’s revenues were $74.5 billion, operating income was $23.4 billion.
Alphabet’s Chief Financial Officer, Ruth Porat mentioned that their “strong revenue growth in Q4 reflects the vibrancy of our business, driven by mobile search as well as YouTube and programmatic advertising.” She also mentioned that these are all areas in which the company has been investing in for many years. Also that they are excited for the opportunities available across Google and Other Bets. Alphabet’s earnings call takes place at 4:30pm EST, we should hear from Alphabet’s CFO as well as other notable executives on the call. It’s clear that advertising is still a pretty big part of Alphabet’s revenue, which is what we all expected. While moonshots and other businesses, are indeed losing money each quarter – still far less than what Motorola was losing each quarter under Google.