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Alphabet Q1 2016: $4.21bn net income on $20.26bn revenue; Google responsible for 99%

It's been eight months since Alphabet Inc. was forged as a parent company for Google and its 'moonshots'. Today, the firm announced its quarterly earnings and as it turns out, Alphabet brought in revenue of $20.26 billion ($16.47 billion after traffic acquisition costs) and earnings of $7.50 a share.

GAAP (Generally Accepted Accounting Principles) net income works out to $4.21 billion, up from $3.52 billion in the same quarter last year. Non-GAAP net income comes in at $5.25 billion, up from $4.46 billion last year.

GAAP operating income was $5.34 billion, up from $4.45 billion in the same period last year, maintaining the same operating margin of 26%. Non-GAAP operating income was $6.84 billion, up from $5.65 last year, with the operating margin increasing from 33% to 34%.

Let's be clear about something. Along with Google, Alphabet is also the parent company for subsidiaries like Nest and Google Ventures, and other projects such as Project Loon and self-driving cars.

Earnings are broken up between Google (including things like search, advertising, YouTube, Android, and Chromebooks), and the lump sum of everything else. Google operations are what made up 99% of the firm's total revenue, or $20.09 billion.

Analyst expectations for Alphabet were $20.38 billion in revenue ($16.57 billion after traffic acquisition costs) and earnings of $7.96 per share.

'Other bets' brought in $166 million in revenue this quarter; however, it had an $802 million operating loss. During the same quarter last year, it brought in $80 million in revenue with a $633 million operating loss.

Source: Alphabet via VentureBeat

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