Google boss Pichai unbothered as 'Other Bets' nears billion-dollar cash sink in Q3 results

There's rich, and then there's 'shrug off 24% profit drop' rich

Google execs are upbeat for the future of the Chocolate Factory even as its quarterly haul took a hit in the profits department.

For the third quarter (PDF) of Alphabet's fiscal 2019:

  • Revenues were $40.5bn, up 20 per cent from $33.7bn in the same quarter of 2018 and ahead of analyst estimates at $40.3bn.
  • Net income was $7.1bn, down 24 per cent from $ a year ago.
  • Non-GAAP earnings per share of $10.12 fell well short of the $12.28 analysts had predicted.
  • Ads from Google Properties brought in $28.6bn of revenue, up from $24.1bn.
  • Revenues on third-party site advertising in Google's network accounted for $6.4bn, up from $4.6bn last year.
  • Other revenues, a non-ads category that includes Google Cloud, ballooned its haul to $6.4bn from $4.6bn.
  • The 'other bets' part of Alphabet, things like Google Fiber and Waymo, grew revenues from $146m to $155m, but also saw losses expand from $727m to $941m.

The smaller-than-expected profits were blamed in part on a $1.5bn loss Google took to its investment portfolio, though execs did not say exactly what the investments were that didn't pay off. Alphabet does have a significant stake in Uber however.

And back to SiteLock


All we need is just a little patients: Google's Alphabet hires new chief health officer


In addition, Google noted that it has pumped money into hiring new workers, specifically product managers and engineers for the R&D operations. CEO Sundar Pichai said that he expects those investments in staff to pay off for Google down the road. Google also boosted its real-estate holdings over the quarter, acquiring new buildings in Sunnyvale, CA and Seattle, WA.

Even with the quarterly dip in profits and the growing money pit that is other bets, Pichai says he and CFO Ruth Porat are not worried, as the Chocolate Factory has always put long-term growth over short term success. And, to be fair, $77.7m in profit every day for the last 90 days isn't bad going.

"Our view is that quarterly growth underscores the strength and vibrancy in our business," Pichai told analysts, pointing to the 20 per cent revenue jump. "We are continuing to invest in long-term opportunities."

Investors did not seem too bothered, either. Despite missing earnings targets, shares were down just 1.7 per cent at $1,268 in after-hours trading. ®

Similar topics

Other stories you might like

  • It's the flu season – FluBot, that is: Surge of info-stealing Android malware detected

    And a bunch of bank-account-raiding trojans also identified

    FluBot, a family of Android malware, is circulating again via SMS messaging, according to authorities in Finland.

    The Nordic country's National Cyber Security Center (NCSC-FI) lately warned that scam messages written in Finnish are being sent in the hope that recipients will click the included link to a website that requests permission to install an application that's malicious.

    "The messages are written in Finnish," the NCSC-FI explained. "They are written without Scandinavian letters (å, ä and ö) and include, for example, the characters +, /, &, % and @ in illogical places in the text to make it more difficult for telecommunications operators to filter the messages. The theme of the text may be that the recipient has received a voicemail message or a message from their mobile operator."

    Continue reading
  • AsmREPL: Wing your way through x86-64 assembly language

    Assemblers unite

    Ruby developer and internet japester Aaron Patterson has published a REPL for 64-bit x86 assembly language, enabling interactive coding in the lowest-level language of all.

    REPL stands for "read-evaluate-print loop", and REPLs were first seen in Lisp development environments such as Lisp Machines. They allow incremental development: programmers can write code on the fly, entering expressions or blocks of code, having them evaluated – executed – immediately, and the results printed out. This was viable because of the way Lisp blurred the lines between interpreted and compiled languages; these days, they're a standard feature of most scripting languages.

    Patterson has previously offered ground-breaking developer productivity enhancements such as an analogue terminal bell and performance-enhancing firmware for the Stack Overflow keyboard. This only has Ctrl, C, and V keys for extra-easy copy-pasting, but Patterson's firmware removes the tedious need to hold control.

    Continue reading
  • Microsoft adds Buy Now, Pay Later financing option to Edge – and everyone hates it

    There's always Use Another Browser

    As the festive season approaches, Microsoft has decided to add "Buy Now, Pay Later" financing options to its Edge browser in the US.

    The feature turned up in recent weeks, first in beta and canary before it was made available "by default" to all users of Microsoft Edge version 96.

    The Buy Now Pay Later (BNPL) option pops up at the browser level (rather than on checkout at an ecommerce site) and permits users to split any purchase between $35 and $1,000 made via Edge into four instalments spread over six weeks.

    Continue reading

Biting the hand that feeds IT © 1998–2021