Alphabet 3Q15 Earnings Call Notes

10 years from now everything will be different again in ways no one can predict

“computing transforms people’s lives, we’ve gone from the PC revolution to the Internet revolution to the mobile revolution. And 10 years from now, everything will be different again in ways no one can predict. ”

Now indexing information that lives within apps

“We have now indexed more than hundred billion deep links within third-party apps. So if you’re looking for information that lives within an app will surface it as a result, and even give you an install link if you don’t already have it. ”

Our mission statement is incredibly broad

“I think we are fortunate to have an incredibly broad mission statement. Organizing the world’s information turns out to be something that has a lot of room ahead, we are still in the early days.”

In technology incrementalism leads to irrelevance

” one of the many very important statements from the founders that explains this framework is when they said in the letters some years ago and repeated since, incrementalism in technology leads to irrelevance and thus innovation is critical.”

There’s an appreciation that there needs to be prioritization of resources

“I think after a period of big expense buildup, there was an appreciation that we needed to manage the cadence of spend. And that’s what we’re doing and collectively we’re locked arm-in-arm to make sure that there’s resource prioritization.”

Alphabet allows for greater insight into Google

“Alphabet it gives us the opportunity to then provide some greater insight into the extraordinary operating performance within Google and breakouts you can see the investments that we’re doing and we’re working very tightly as a senior team here as we make that next step into this new environment in Alphabet.”

Mobile will eventually blend with desktop

“mobile is a computing paradigm is eventually going to blend with what we think of his desktop today as well. So overall it’s a shift in a computing paradigm, it’s not just form factors. And so overtime we see all of this is together. ”

Ad blockers are not new. It’s important to understand that ads fund all services that people use

“On the ad blocker stuff, it’s not a new phenomenon. I think it’s important to understand that ads today fund almost all the services which people use, including products like Google Search, Google Maps many, many third-party products. For publishers, it represents the majority of the revenue and I think users are okay with the contract and we need to make sure it works well. It’s also clear that that are areas where the ad experience is getting in the way, it affects performance, and so we as industry need to collectively do all that better. And so we are going to work hard to do that.”

We’re just scratching the surface on deep linking

“we’re beginning to scratch the surface in terms of how we get it information within apps. What’s been exciting to us is all of the indication show that when we provide these deep links. Users respond to them the same way they’ve done with links to websites and the model is working well.”

How do we broaden the nature of issues that we’re able to address?

“within other bets we have a pretty broad array of challenges, opportunities that are being tackled, as you know well from life sciences to driverless cars to what we’re doing in access and energy. And those we’re funding, we’ve got a very rigorous disciplined approach to looking at the metrics against which they’re performing and growing. But you used a term, when do they move into Google. And I wouldn’t assume that, that’s the plan. What we’re really looking at is how do we continue to broaden the nature of issues that we’re able to address.”

We want alphabet to be a magnet for entrepreneurs

“What we want with Alphabet is to be an extraordinary magnet, the best magnet for entrepreneurs, and to be an accelerant for their development. And to give them that the kind of environment where we can continue to thrive, and therefore build great businesses that generate tremendous returns as well for our stakeholders on top of solving big problems.”

The progress in machine learning has been dramatic in the last two years

“Machine learning is core transformative way by which we are rethinking everything we are doing. We’ve been investing in this area for a while. We believe we are state-of-the-art here. And the progress particularly in the last two years has been pretty dramatic. And so we are – we are thoughtfully applying it across all our products, be it search, be it ads, be it YouTube and Play et cetera. And we are in early days, but you will see us in a systematic manner, think about how we can apply machine learning to all these areas.”