Nest is one of the chief revenue drivers for Alphabet’s “Other bets” segment, despite going through a PR rough patch.
Nest, led by Tony Fadell, makes smart thermostats and smoke/carbon dioxide detectors, as well as Dropcam cameras and its Works With Nest platform.
For two quarters, Alphabet has reported earnings by segment—Google, which earns the great majority of the umbrella company’s revenue with things like ads, search, YouTube, Android, and the like, and “Other bets,” which includes Nest, Verily, Google Fiber, Google X, and other long-term businesses.
During Alphabet’s first-quarter, it brought in $20.257 billion in revenue. Google made up 99.18% of that. Other bets accounted for just $166 million of the revenue. But during the company’s earnings call with investors, chief financial officer Ruth Porat said that Nest, along with Verily and Google Fiber, had brought in most of that other bets revenue, though neither she nor Alphabet got more specific about the numbers. Porat also noted that Other bets revenues would show “lumpiness” quarter to quarter, and urged investors to look at that side of the company over the long term rather than the short term.