The words at the top of the press release seem strange: "Alphabet Announces Third Quarter 2015 Results of Google."
Indeed, the company formerly known as Google—which reorganized in August under an umbrella organization called Alphabet—reported quarterly earnings for the first time Thursday. However, Alphabet will not have results for a full period under the new structure until the fourth quarter.
At its fourth-quarter earnings report, which will take place in January 2016, Alphabet will report both the results of Google’s core businesses and Alphabet results, which it will refer to as "other bets," said CFO Ruth Porat. Those other bets will include the performances of initiatives like the company’s energy efforts, its Nest division, its X skunkworks, and its investment services.
Porat also said that in future quarters, earnings reports will disclose revenue, profitability, and capital expenditures for both Google and Alphabet.
For this last quarter as a unified Google, the company reported revenues of $18.7 billion and revenue growth of 13% year-over-year. It said paid clicks during Q3 were up 23% year-over-year, but that cost-per-click had dropped 11% over the same period.
During the earnings call, new Google CEO Sundar Pichai, who reports to Alphabet CEO Larry Page, said Google now has six services that each has more than a billion users. Joining Google search, Android, Google Maps, Chrome, and YouTube, Google Play now tops 10 figures as well, Pichai said.
For its part, Android has grown from 1 billion users to more than 1.4 billion.
And highlighting Google’s dominance on mobile devices, Pichai said there are now more Google mobile searches than desktop searches worldwide.
Pichai also said that Google Photos, which the company launched during its I/O developers event this spring, now has more than 100 million users who have uploaded more than 50 billion photos.
Google has also sold more than 20 million Chromecast devices, he said.
Porat noted that Google’s board of directors had authorized a stock buy-back worth up to $5 billion.