Alphabet, Google’s parent company has revealed the financial report for first quarter of 2018. And the results are excellent. For the first quarter of 2018 Alphabet recorded revenues of $31.146 billion a 26 percent increase from the same quarter last year. The revenues rise from $24.750 billion in the first quarter of 2017. The net income amount sums up to $9.401 billion for the first quarter of 2018.
Alphabet has been making a lot of money from ads. The company made about $26.6 billion from the ads, while around $150 million were from “Other bets”. Alphabet’s other bets include Google Fiber, Waymo self-driving car team and others. The revenue is up from last year’s same quarter revenue of $132 million from “Other Bets”. Operating income for “Other Bets” comes in at a loss of $571 million for the quarter. Last year the loss was about $703 million for the first quarter. Furthermore, Google is looking to push the ads revenue further this quarter.
Alphabet has been making some changes this quarter. The company has moved the Nest brand to its hardware division where it joins other hardware devices such as the Pixel phone and others. Google’s hardware division revenues are not added to revenues under “Other Bets”. Moreover, Alphabet has now started recording some unrealized gains and losses from its various investments.
Google which is the biggest company contributing to Alphabet’s revenue recorded a total revenue of $26.642 billion from ads. This is further followed by Google’s Hardware division which includes Pixel Phones, Google Home, Nest and others. Google’s hardware division along with Google Play store, generated $4.354 billion in the first quarter. Last year Google revenues were around $21.411 billion in total which included $3.207 billion from Google’s hardware division along with Google Play store.
Google’s other divisions including the cloud and G suite continue to perform well. Google has been announcing new automation technologies along with signing up deals which according to Pichai are “significantly larger, more strategic deals.”