Alphabet Posts Revenues of $21.5B for Q2 2016

Alphabet has just posted their earnings for the second quarter of the year (April 1st through June 30th), and they actually beat analysts expectations. Analysts were expecting Alphabet to bring in around $20.76 billion in revenue with $8.03 earnings per share. Instead, they brought in $21.5 billion in revenue with earnings per share of $8.42. That's a 21% increase over this time last year. GAAP operating income was $5.9 billion, an increase of 28% over last year, with Non-GAAP operating incoming sitting at $7.5 billion, that's up 35% year-over-year.

Google segment revenues were $21.3 billion, with Google operating income totaling $6.9 billion. When it comes to the company's "Other Bets" (this includes X, Nest, GV, etc), revenues were $185 million, which is up from $74 million the year before. However, the operating loss for Other Bets continue to widen at $709 million excluding SBC expense, with SBC expense that gets even worse with a $859 million operating loss.

It has been almost a year since Alphabet was formed. On August 10th, 2015, Larry Page announced that he and Sergey Brin were "leaving" Google to start Alphabet, which basically became an umbrella for all of the projects that were at Google. It promoted Sundar Pichai to CEO of Google, but also gave shareholders a more transparent look at how Google's other projects were really doing. Particularly companies like Nest and X (formerly Google X). And as we can see now, they aren't actually making Google any money, and about 99% of their revenue comes from ads and search.

Revenue did grow for Alphabet, but unfortunately so did the operating losses for their Other Bets. Which definitely puts a damper on an otherwise very strong quarterly report from the company. Any time a company posts revenues that were 21% higher than a year ago, it's a good thing. Not to mention the fact that they exceeded analysts expectations. Currently, Alphabet's stocks are up 4% in after-hours trading. It's expected to climb even more before trading opens tomorrow morning, due to their strong earnings announced this afternoon. As usual, Alphabet is holding their conference call at 4:30PM ET/1:30PM PT to talk about these earnings. Which you can listen to the call via the YouTube video below.

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Alexander Maxham

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Alex has written for Androidheadlines since 2012 as Editor of the site and traveled the World to many of the biggest Smartphone and Technology events. Alex has a background in Technology and IT and Deep Passion for Everything Android and Google. His specialties lay in Smartphones of all budgets, Accessories, Home Automation and more. Contact him at [email protected]