Alphabet had a terrific quarter, it said today, reporting revenue of $21.5 billion, up 21% from Q2 2015, and besting analysts’ estimates.
Driving that revenue growth? Mobile.
“The strength of the quarter is about mobile,” Sundar Pichai, the CEO of Google, said on Alphabet’s earnings conference call, which has “changed the way people consume information. Our investment in mobile underlines everything we do…[from] search and YouTube to Android and advertising. Mobile is the engine that drives everything.”
Added Pichai, through Google’s “deep investments in machine learning and [artificial intelligence], we’re building the engine that drives our future.”
That line echoed Alphabet CFO Ruth Porat’s statement earlier in the call that the “vast majority” of the 2,460 new employees the company added in Q2 were engineers and project managers in its growth and priority areas, “clouds and apps and machine learning.”
Although Pichai did not explain how mobile drives revenue, it’s a safe bet that it’s mainly due to advertising, which makes up 88.8% of the company’s total revenue.DT