Alphabet, Google's parent company, has reported revenues of $20.3bn and profits of $4.2bn for Q1, 2016. Both of those figures are on the rise – respectively up 17 per cent and 20 per cent year-on-year – but missed analyst expectations, causing share prices to plunge eight per cent.
The vast majority of those revenues ($20.1bn) comes from Google's core business, and primarily advertising ($15.5bn).
The company's 'other bets' – which include Nest, Google Fiber, Project Loon, and its self-driving car division – brought in combined revenues of just $166m, and made a loss of $802m during the quarter. That's to be expected, as many of these businesses are yet to bring a product to market – most of the revenues come from Next, Fiber and health business Verily – but it's worth noting that the losses are mounting, growing from $633m in the same period last year.
“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,” said Alphabet CFO Ruth Porat.