Other Bets generated only $170 million in revenue
Alphabet’s (GOOGL) Other Bets segment includes the company’s ambitious efforts to develop advanced technology via ventures such as its autonomous vehicle arm, Waymo, its health venture, Verily, and Fiber. The segment generated revenue of $170 million in the first quarter of 2019, a rise of only 13.3% YoY (year-over-year).
Alphabet hasn’t divulged much in terms of the details of its Other Bets, but it’s clear that it’s investing a lot in Waymo, its autonomous vehicle arm.
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The autonomous vehicle division disclosed last October that it had completed an impressive 10 million miles of testing. However, it’s still not clear when Waymo will be launching its robo-taxi business.
Alphabet lost $868 million in its Other Bets
Alphabet continues to invest heavily in its Other Bets businesses. The segment saw an operating loss of $868 million in the first quarter, much higher than its operating loss of $571 million in the same quarter last year.
In the whole of 2018, the segment posted an operating loss of $3.36 billion compared to its operating loss of $2.73 billion in 2017. The segment has been another drag on the company’s deteriorating margin.
Alphabet’s balance sheet remains strong, meaning that it can afford to invest in Other Bets as it harbors hopes of finding other divisions as successful as its ad business.