Alphabet, the parent company of Google formed in 2015 has racked up $3.6 billion in losses last year through investments in “big-bets” such as self driving cars and internet balloons. However, the company feels that these big-bet investments will surely pay back big in returns one day.
According to Forbes, Alphabet was spending heavily on these items but revealed the actual figures for the first time on Monday. The results were released separately for its Google business and for big-bet investments, which it also calls Moon shots.
The latest loss was much higher in 2015 than in 2014, when their totaled to $1.9 billion.
Alphabet says that it stands to reap rich rewards in the long term if any of those big-bets pays off. They also include its investments in smart thermostat company Nest, Google Fiber, and Medical Service, including efforts to build a smart contact lens that measure Glucose levels.
The good news is that Google made profits from its core business in advertising and search which generated $23.4 billion in operating income last year, on $74.5 billion in revenue.
Google reorganized itself last year under a holding company called Alphabet, which consists of Google — its core search and advertising businesses — and then other business units that place long term bets on emerging areas. It said the move would provide more visibility into how its core search and ad businesses are doing.
As a whole, Alphabet’s revenue for the three months till December 31st, 2015 was $21.3 billion, up 18% from the year before and higher than the $20.8 billion analysts had been expecting, as per a poll by Thomson Reuters.
Net Profit for the quarter rose to $4.9 billion. Therefore, the net earnings per share was $8.67, up by 28% and much better than the $8.10 rate predicted by analysts last year.