It seemingly does. It's part of their enterprise offering, which they can use to upsell other things like GDocs and company GDrive. GDocs is also notoriously bad with search. As bad as it is, it's still the best out there that most people are familiar with.
It likely doesn't make any money by itself. It's a loss leader to entice companies into its enterprise offerings.
Loss leaders are valuable too. Android is a loss leader that funnels half the world into their exorbitant Google Pay + Play Store ecosystem.