According to global vice president Hugo Barra, the company doesn't make even a "dime" from smartphone sales. It is reliant on revenue from software and other devices (e.g. smart home products) for profit.

Basically we're giving [handsets] to you without making any money. We could sell 10 billion smartphones and we wouldn't make a single dime in profits.- Barra

Barra also noted during his interview with Reuters that the company has invested in India and other Asian markets. It's getting ready to offer direct sales to US consumers