Google reported earnings Monday afternoon for the first time under the Alphabet name, the umbrella company Google unveiled in a restructuring a year ago.
For the fourth quarter other bets in areas like self-driving cars, internet balloons and more was $448m, resulting in an operating loss of $3.5bn.
Today, for the first time, Alphabet reported financial results that distinguish between its core “Google” business (which include search and advertising, along with things like Maps, Android, YouTube, and Chrome) and the experimental businesses – such as self-driving cars – that Alphabet is calling “other bets”.
Google ad revenue climbed globally, gaining on both mobile devices and desktop computers, as per Alphabet Chief Financial Officer Ruth Porat.
The company’s combined share classes were then valued at $554 billion, beating Apple Inc (AAPL), which was worth around $534 billion and whose shares were slightly falling during extended trading.
Google generated $14.94 billion in revenues from its own Websites, up 20% on the same quarter in 2014, while the contribution from its network members’ sites grew by 7% to $4.14 billion.
A newcomer is now the most valuable company in the world.
Hours after Alphabet announced its Fourth Quarter and Fiscal Year 2015 Results, its ranking went up with a $570 billion value compared to Apple’s $540 billion. Thanks to this boost and Apple’s mediocre earnings report, Google’s parent company Alphabet claimed the title of the world’s most valuable company.
Aside from Google, Alphabet comprises smart home division Nest, life extension project Calico, moonshot business Google X, high-speed internet infrastructure business Fiber, investment arm Google Capital, and future cities division Sidewalk. Nevertheless, Alphabet still managed to take that crown from Apple – an incident which last happened in 2009 when it was still Google.
“It looks like Google continues to execute on mobile [advertising]”, said Neil Doshi managing director of research at Mizuho Securities. Adjusted earnings of $8.67 per share handily beat average estimate of $8.10 per share projected by analysts.
In terms of Google’s core advertising business, cost-per-click fell 13% year-over-year, while paid clicks increased 31% year-over-year.