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Google's ad business continues to prop up its experimental ventures
Google's parent company Alphabet just released its financial results for the first quarter of 2016, and unsurprisingly the company continues to rake in huge amounts of cash. Revenue in Q1 of 2016 was $20.3 billion, up 17 percent year-over-year. Net income of $4.2 billion was also up a healthy 20 percent over Q1 of 2015, though unsurprisingly Alphabet's "other bets" companies continue to lose quite a bit of cash -- $802 million in the quarter, if we're being exact.
Alphabet earnings shows just how much Google's 'other bets' are losing
The newly-minted Alphabet (made up of Google proper and the variety of ventures that make up the "Other Bets" the company is involved in) has just released its first full quarter of financial data under its new structure. At a high level, Alphabet continued the growth that Google has seen over the last year or so -- the company is reporting $21.3 billion of revenue with profits of 4.9 billion. That marks an 18 percent yearly increase in revenue and a 5 percent increase in net income, both decent gains for the company. As has been the case for a number of quarters lately, the gains came on the strength of a growing mobile search business as well as YouTube and the company's "programatic advertising" business.
Google continues to grow thanks to strong mobile and YouTube ads
Google is now Alphabet, but the company has one more quarter of results to report under its old business structure. As usual, Google's advertising business made up the lion's share of the company's revenue, totaling 89.9 percent of the money Google pulled in. And this was another quarter in which the company's strong mobile advertising and YouTube advertising units led the way -- Google's recently-appointed CEO Sundar Pichai continually referred to the strength and potential of mobile throughout his remarks on today's investor call, saying "internally all of our objectives are focused on mobile." He also said that mobile search now outstrips desktop -- more than 50 percent of Google searches come from mobile phones.
