Alphabet Brings in Over $5 Billion in Net Income During Q3 2016
To round off the week, Alphabet has just published their 3rd quarter financial earnings for investors and the media. We can see that June, July, August and September were good for the internet tech giant. Overall revenue for the quarter increased to $22.4 billion when compared to the same quarter last year (which was at $18.6 billion). This quarter’s revenue is up from $21.5 billion when you compare it to the second quarter of this year.
Google has reported that they were able to net $5.7 billion in total profit for the quarter, which is up from $4.7 billion compared to the same quarter of last year. This was mostly attributed to the profits that were brought in from the Google division. Google themselves saw their overall revenue go from $18.5 during the third quarter of 2015 up to $22.2 billion this year — with net profit increasing from $5.8 billion during the quarter last year all the way up to $6.7 billion from June through September of this year.
Naturally, Alphabet lost some of its profits thanks to their other bets/moonshot projects that they currently invest in. Alphabet’s other bets consist of projects like Nest, Fiber, Verily, and more. They were able to increase overall revenue from $141 million during the third quarter of last year to $197 million this year. However, these other bets also cost Alphabet a total of $865 million and this is actually down from the operating loss of $980 million compared to the same quarter last year.
These types of results have been very typical ever since Alphabet was formed as the parent company of Google. We see the established products and services are bringing in enough profit to keep their moonshot projects funded. Sometimes these other bets don’t pan out exactly as they originally planned. Which is what we’re currently seeing with the fiber side of Google Access, but we can see that the company is still able to beat expectations.Source: Alphabet Investor Relations
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