News: Shares surged 9% after Google’s parent company reported better than expected results.
Revenue increased 18% to $21.32bn for the fourth quarter ended 31 December 2015, compared to $18.10bn in the year-ago period.
Net income was $4.92bn, or $7.06 diluted earnings per share, in Q4, compared to $4.67bn, or $6.79 diluted earnings per share, for the same period last year.
Operating income rose to $5.3bn, compared to $4.39bn in the previous year. Google’s advertising revenue increased 17% to $19.08bn, while the number of ads, or paid clicks, grew 31%
Alphabet is now worth about $568bn, compared with Apple, which has a value of around $535bn.
The revenue increase was attributed to strong growth in mobile search, YouTube and advertising.
The figures reveal that Alphabet has invested more money on moonshot projects such as driverless cars, when compared to the earlier year.
In 2014, the company had reportedly lost $1.94bn on moonshot projects, with losses surging to $3.57bn during 2015.
Alphabet’s future investment plans include cloud computing, virtual reality and artificial intelligence.
Meanwhile, Google’s email service, Gmail passed one billion users in Q4, joining six other services with over a billion users.
Commenting on the results, Alphabet CFO Ruth Porat said: "Our very strong revenue growth in Q4 reflects the vibrancy of our business, driven by mobile search as well as YouTube and programmatic advertising, all areas in which we’ve been investing for many years.
"We’re excited about the opportunities we have across Google and Other Bets to use technology to improve the lives of billions of people."
The reorganisation of Google into Alphabet was completed last October. Alphabet’s portfolio includes various industries such as technology, life sciences, investment capital, and research.
Alphabet will also include new ventures such as the smart-home unit Nest, Calico, Google Ventures, Google Capital, Google X and other subsidiaries.
The project has already logged more than a million miles on public roads around San Francisco and Austin, Texas.
It is believed that Alphabet may start a new service in those cities, with no timeframe mentioned for the launch.