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Financials

– Net profit stood at $4.88 billion a rise of 24% from $3.93 billion in the same quarter last year.

–  Alphabet reported revenues of $21.5 billion, an increase of 21% from $17.72 billion in the same period last year.

– Google as a segment reported revenues of $21.3 billion, an increase of 21% from $17.65 billion from the same quarter last year.

– Google’s websites reported revenues of $15.4 billion, an increase of 24% from $12.4 billion in the same period last year.

– Advertising revenue stood at $19.14 billion, increasing 19% from $16.02 billion in the same period last year.

Alphabet Inc (formerly Google Inc) posted a net profit of $4.88 billion for the quarter ended June 30, 2016 (Q2 2016), a rise of 24% from $3.93 billion in the same quarter last year. The company also reported revenues of $21.5 billion, an increase of 21% from $17.7 billion in the same period last year. Alphabet’s revenues from its Other Bets division which includes its fiber business, life sciences and X business (the company’s moonshot research and development division) stood at $185 million and from Other Revenues (cloud business, Play store revenues etc.) stood at $2.17 billion, up 33% year on year from $1.6 billion last year.

Some takeaways from Alphabet’s earnings and call with analysts:

Internet for everyone: Google now has 2 million users logging in monthly on its WiFi initiative with Indian Railways and RailTel. According to Google CEO Sundar Pichai, “We are working with Indian Railways and RailTel to bring high-speed wireless access to the Internet to millions of people who travel throughout India’s top railway stations” adding, “current users are using as much as 15 times the data they would otherwise use in a full day on their cellular networks.”

Android is growing: Android had 65 billion app installs in the last year. Pichai said that, “Our latest version of Android, called Nougat, focuses on performance, productivity, and security. And it also has a VR mode built in to help developers create immersive smartphone VR experiences. Our partners are also seeing incredible successes with flagship devices like the Samsung Galaxy S7.” Note that Google is currently building a ‘Daydream’ ecosystem for VR on mobiles, which will enable manufacturers to launch Daydream-ready phones, controllers and headsets.

AI & machine learning the future: “Thanks to advancements in machine learning, we have the unique opportunity to take a big step forward for the next 10 years.” said Pichai, “We want to help people get things done in a conversational way across devices and context. This is possible thanks to advances in machine learning, voice and image recognition, and natural language processing, which we have invested in for years. You will be able to experience the Google Assistant in products like our new messaging app, Allo, and our voice-activated device, Google Home.”

New & current products: “Our new keyboard for iOS, called Gboard, is off to a great start. People love the ability to easily search right from the keyboard, swipe to type, and quickly send emojis. And after just one year, Google Photos is now being used by over 200 million people.” said Pichai, “We announced new Expanded Text Ads and bid adjustments by device type, which are rolling out this week, as well as new local search ads in Google Maps.” The company is also launching Expanded Text Ads and an a new local search ads in Google Maps soon.

On Accelerated Mobile Pages Pichai said, “We now have over 150 million AMP pages in our index and with over 4 million new ones published every week from nearly 200 countries. Last week, we announced AMP for Ads, which helps advertisers build fast, simple, and beautiful ads and landing pages.”

Download: Earnings Release | Transcript

Image source: Flickr user Chris Wetherell under CC BY 2.0