Alphabet 4Q15 Earnings Call Notes

Alphabet (GOOG) Q4 2015 Results

Ruth Porat – Chief Financial Officer & Senior Vice President

“Other Bets” says something about Google’s psychology

“With a move to our new Alphabet structure, we conducted a detailed review of business opportunities and investment levels across Google and Other Bets. ”

Sundar Pichai – Chief Executive Officer, Google, Inc.

Over 1 B monthly active users in 6 properties

“six of our consumer products, Search, Android, Maps, Chrome, YouTube, and Google Play, all have over a billion monthly active users each. ”

We believe we lead the industry in AI

“the next wave will be powered by big advances in machine learning and artificial intelligence, an area where we believe we lead the industry. Just last week, DeepMind published an incredible result, the first ever to master the game of Go with artificial intelligence. An amazing accomplishment, and I’m excited for the world championship in March.”

Machine learning already impacting products

“From image recognition in photos to eliminating email spam to better translation and voice recognition, our machine learning efforts are making a huge difference for people every day.”

Early innings for virtual reality

“It’s still incredibly early innings for virtual reality as a platform, and Cardboard is just the first step, but we are excited by the progress we have seen. Our partners have shipped over 5 million Google Cardboard viewers, and we recently teamed up with The New York Times on a virtual reality experience in which over 1 million Times subscribers received Cardboard. ”

YouTube reaches more 18-49 yo than any cable network in the US

“Not only does YouTube on mobile reach more 18 to 49-year-olds than any cable network in the U.S., but the time people spent watching YouTube in the living room more than doubled in 2015.”

Tough to predict what happens with AI in five years, but making significant strides

“On AI, we are obviously seeing incredible progress in this field. We make great strides, and we start taking it for granted and look to the years ahead. It’s always tough to predict what happens over a five-year timeframe, but I do see us making significant strides. Even a year ago, I wouldn’t have predicted that we would be in a strong position to mount a serious challenge to the world champion in Go this year. So looking at the pace of progress, I think we will have AI in a form in which it benefits a lot of users in the coming years, but I still think it’s early days, and there’s a long-term investment for us.”

We’ve driven 1.3m miles autonomous vehicles

“Look, on the self-driving cars, we have an extraordinary tech team. We’ve been working on it for many years, and the focus is developing technology with a real emphasis on safety and understanding what it takes to build and operate fully autonomous vehicles. We continue to make great progress. We’ve now driven 1.3 million miles with important data regarding the safety and utility, and that’s what we’re really focused on. We’ve got prototypes on streets in two cities. So we’re continuing to execute against that and continuing to build it out.”

We continue to invest in Google

“What we achieved here by pulling out the two pieces is providing, obviously, greater visibility into what we’re investing within the Other Bets, but want to underscore that we continue to invest in Google. We’re in early innings in many areas. And I already referenced back to the framework we use, which is to continue to push the frontier within Google as well to adjacent areas.”