Alphabet, Google's Parent, Strikes Earnings Gold With Mobile Search - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
Mobile // Mobile Applications
News
10/23/2015
09:05 AM
Connect Directly
Google+
LinkedIn
Twitter
RSS
E-Mail
50%
50%

Alphabet, Google's Parent, Strikes Earnings Gold With Mobile Search

Alphabet, Google's new parent company, exceeded analysts' expectations due in large part to the strength of its mobile search business, according to company executives.

10 Google Milestones: From Stanford Dorm To Alphabet
10 Google Milestones: From Stanford Dorm To Alphabet
(Click image for larger view and slideshow.)

Alphabet, Google's new parent company, on Thursday reported that its Google subsidiary earned $18.7 billion in revenue, exceeding analysts' expectations and lifting Alphabet's stock in after-hours trading.

Google's revenue in Q3 2015 grew 13% year-over-year. The company had been expected to report revenue of $18.54 billion, according to Thomson Reuters.

Ruth Porat, CFO of Alphabet and Google, said in a statement that Google's Q3 results underscore the strength of Google's business, particularly in mobile search. She noted that six Google products now have more than one billion users globally. These include: Search, Android, Chrome, Maps, YouTube, and Google Play.

Porat said that for its Q4 report, Alphabet will disclose Google earnings as well as "other bets," companies like Calico and Nest that were previously operated as divisions of Google. She also noted that the strong dollar had a $1.6 billion impact on Google's results, or $1.3 billion when the company's currency hedging program is taken into account.

(Image: Google)

(Image: Google)

Both Porat and Google CEO Sundar Pichai celebrated the company's strong mobile search performance.

"Search traffic on mobile phones has now surpassed desktop traffic worldwide," said Pichai.

But questions raised by financial analysts on the company's conference call suggest ongoing doubts about Google's ability to monetize that traffic. Investors hope that Google will be able to match its desktop search revenue by selling ads on mobile devices, but history may not repeat itself.

In a recent blog post, The Guardian's Charles Arthur articulated those concerns, noting that the average number of Google searches per smartphone per day is less than one. He characterizes mobile search as "a real problem for Google."

[ Read Google Files FAA Paperwork Detailing Its Drone Plans.]

To hear Porat or Pichai tell it, mobile search is one of the many opportunities for Google.

Pichai also expressed optimism about cloud computing. "On the cloud side, it's an exceptional opportunity," he said. "Every business in the world is going to run on cloud eventually."

Pichai said Google's enterprise business, Google for Work, now has over a million paying customers. And he emphasized Google's commitment to machine learning, which informs the company's translation capabilities among many other applications.

"Our investments in machine learning and AI are a priority for us," said Pichai.

The company also announced that its board had authorized the company to buy back up to $5,099,019,513.59 in shares starting this year. The very specific dollar amount corresponds to the square root of 26 -- the same number of letters in the alphabet.

Thomas Claburn has been writing about business and technology since 1996, for publications such as New Architect, PC Computing, InformationWeek, Salon, Wired, and Ziff Davis Smart Business. Before that, he worked in film and television, having earned a not particularly useful ... View Full Bio

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
News
How COVID is Changing Technology Futures
Jessica Davis, Senior Editor, Enterprise Apps,  7/23/2020
Slideshows
10 Ways AI Is Transforming Enterprise Software
Cynthia Harvey, Freelance Journalist, InformationWeek,  7/13/2020
Commentary
IT Career Paths You May Not Have Considered
Lisa Morgan, Freelance Writer,  6/30/2020
White Papers
Register for InformationWeek Newsletters
Video
Current Issue
Special Report: Why Performance Testing is Crucial Today
This special report will help enterprises determine what they should expect from performance testing solutions and how to put them to work most efficiently. Get it today!
Slideshows
Flash Poll