Alphabet is trying to find a new source of revenue beyond Google ads
Alphabet’s “Other Revenue” category, which includes cloud services, the Pixel phone, and the Play store, now accounts for 13% of total revenue, from 10% last year.
Combined, products in that category had an increase of revenue of close to 50%, to $3.1 billion, against the year before.
That’s more growth than the already impressive rate of Alphabet as a whole, of 22% compared to the same quarter last year, to $24.7 billion.
Alphabet’s quarterly revenue
This means that Alphabet is managing to reduce its dependency on Google advertising, which still is its largest source of revenue.
Though it has potential, the “Other Bets” category is far from reaching the amount of money generated by Google advertising.
The ad business produces 86% of Alphabet’s total revenue, some $21.4 billion of $24.7 billion.