Other Bets, the unit of Alphabet that includes Google Fiber and longer-term projects, saw revenues rise and losses widen in Q1 2017.
Q1 revenues came in at $244 million, up from $165 million in the year-ago quarter, paired with net loss of $855 million, versus a loss of $774 million a year earlier. The bulk of revenues for Other Bets came way Nest, Verily and Google Fiber, Ruth Porat, CFO of Alphabet and Google, said on Thursday's earnings call.
Last year, Google Fiber put a pause on market expansions as it concentrates in existing markets and pursues new wireless-based alternatives
Google’s push into virtual reality and OTT TV (via the new YouTube TV service) were among the topics that came up on the call.
Sundar Pichai, CEO of Google, said more than 50% of the time consumers spend in the company’s new Daydream mobile VR platform is for video consumption, and that YouTube VR for Daydream is the number one app on the platform in terms of time spent. Google launched the Daydream View headset last November.
Google launched the Daydream View headset last November, and Pichai preached patience on how long it will take for VR to generate mainstream adoption.
“Technically, we are making the breakthroughs are needed,” he said later, noting that Daydream is doing well with early adopters of VR technology.
Pichai also talked up the new advertising potential presented by YouTube TV, the mobile-focused virtual MVPD service that went live in handful of markets earlier this month.
“The delivery of ads on TV has also not evolved at the same speed as the delivery of ads and media content on the Internet,” he said. “We think we have a significant opportunity to improve that experience, especially for advertisers…across these surfaces.”