Alphabet Inc. Hints Revenue Rise Despite $802M Losses in Bets Biz, Q1 Report Says [VIDEO]


The businesses listed under Alphabet are autonomous cars, home automation products Nest, Google Fiber and its breakthrough tech lab dubbed X. In recent events, Alphabet introduced its bipedal robot which can go through hurdles and go up and down the stairs.

Other Bets companies listed under Google have raked in $166 million in revenue. Although the results are high, they failed to hit the targets set by Wall Street.

Amid the target shortage to their March 3 deadline, Alphabet collected $20.26 billion in revenue which was equivalent to $7.50 per share. According to data compiled by Reuters, Wall Street projected extra cents coming in at $20.37 billion in revenue or $7.97 per share.

Reportedly, the money spent for the company's effort for traffic building to mobilize the mobile advertising services could have caused the miss in Alphabet's Wall Street Targets.

Meanwhile, the traffic acquisition costs (TAC) or the payments allotted for other websites reached $3.8 billion and accounted 21 percent of advertising revenues, Alphabet Chief Financial Officer Ruth Porat spoke to a press conference. An upward movement from the percentage of ad revenues used up on TAC also hinted an annual 13 percent increase.

Sameet Sinha, a B. Riley & Co. analyst, said that investors must have to get used seeing the TAC increasing. For Sinha, this is the "cost of doing business."

The analyst explained  that if you're getting mobile searches from Apple devices, you have to pay Apple for traffic so that revenue can happen.

For Porat, the practice of allotting more money to control traffic is expected to rise due to the trend of shifting to mobile.

Despite Alphabet's failure to meet the investors' expectations, Porat assured that the first quarter results are signs of a "tremendous start to the year" having 23 percent increase in stable currency and 17 percent growth in revenues per annum to consider.

"We're thoughtfully pursuing big bets and building exciting new technologies, in Google and our Other Bets, that position us well for long term growth," she said.

Here's a video of the report,

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