Alphabet, the parent company of Google, has just released its financial results for Q1 2016 and the company was able to generate high amounts of revenue despite losing a sizeable amount of money on its riskier ventures.
In Q1 2016, the company earned $20.3 billion in revenue which is a 17 per cent increase year-over year. Alphabet earned a net income of $4.2 billion which is a 20 per cent increase from what it earned in Q1 2015.
However the companies 'other bets', which includes Verily, Google Fiber, Google X, Ventures, Nest, Calico and a number of others, led to a loss of $802 million during the first quarter of 2016.
The vast majority of Alphabet's revenue was generated by Google's advertising business. It earned $18 billion in advertising revenue which is a 16 per cent increase from the first quarter of last year.
Hardware sales and the money generated from Google Play amounted to nearly $2.1 billion this quarter, which was a 24 per cent increase from Q1 2015. It is quite possible that the successful launch of the Nexus 5X and Nexus 6P helped increase these numbers as the latest smartphones from Google were received much more positively by consumers than last year's Nexus 6.
Neither Google's financial report or its investor call contained any exciting news or developments, so the company's CEO Sundar Pichai announced the launch of 360 degree live video on YouTube to give consumers and journalists something to get excited about.
He also spoke about the success that game developers are having on Google Play and that more games have hit the 1 million installations mark in 2015 than ever before.