Nest, a Google-owned company that makes smart thermostats, security cameras, and other devices, posted a $621 million operating loss against $726 million in revenue last year. These figures were revealed because Alphabet, Google’s parent company, restructured its businesses by rolling Nest into Google’s hardware division. Many expected this move to help Google compete against Amazon, which leads in smart home market share, Quartz’ Ashley Rodriguez reports.
Nearly 40% of Nest’s 2017 revenue, or $278 million, came in the fourth quarter, the big holiday shopping season. Losses were relatively flat during period compared to the quarter before, which suggests expenses were leveling off. Nest may see more savings now that it’s been folded back in Google’s broader hardware business.
Nest is under the umbrella of Alphabet’s “other bets,” which are basically companies other than Google that Alphabet thinks could one day be as important. According to the 2017 numbers, Nest’s losses accounted for 18.5% of the “other bets” total and 60% of the revenue.
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