How Alphabet’s Other Bets Have Transformed in One Year
Other Bets top-line growth accelerated
Other Bets, Alphabet’s (GOOGL) collection of experimental businesses, continued to grow in 3Q17. In addition to revenue growth, losses from these businesses are also narrowing. The Other Bets segment is where Alphabet bundles sales from such businesses such as Waymo (autonomous driving), Nest (connected home appliances), Fiber (high-speed cable Internet), and Verily (healthcare products).
In 3Q17, Alphabet reported Other Bets revenues of $302 million—a rise of 53.3% YoY (year-over-year), compared with 34% YoY growth in 2Q17 and 39.7% YoY growth in 3Q16.
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Other Bets eliminates $49 million in operating losses
Alphabet’s Other Bets revenues also narrowed on annual basis in 3Q17. Other Bets operating loss of $812 million in 3Q17 compared with an operating loss of $861 million in 3Q16.
According to Alphabet, Nest, Fiber, and Verily were once against the Other Bets growth drivers in 3Q17, same as in 2Q17. The company noted that Nest continues with its product expansion as Waymo continues with its geographic expansion. Alphabet said that Waymo will start winter testing its self-driving vehicles in Michigan.
Nest products, which include smart thermostats and security alarm system, are available in North America in markets such as the US (SPY) and Canada and in Europe (EFA) in markets such as the UK (EWU), Germany (EWG), and France.