Google Surges On Q2 Earnings Beat, New Role For CFO Ruth Porat
'In her new role, Ruth will strengthen our collaboration with policy makers and shape our corporate investments to have maximum economic impact,' said CEO Sundar Pichai.
Updated at 4:40 pm EDT
Alphabet (GOOGL) - Get Free Report posted stronger-than-expected second quarter earnings Tuesday and said Ruth Porat, its highly-respected CFO, would transition to a new role within the tech and advertising giant.
Alphabet said group revenues rose 9.9% from last year to $74.6 billion, a tally that topped the Street consensus forecast of $72.8 billion, as ad sales rose 3.3% to $58.14 billion.
Search and other revenues rose 4.8% to $42.63 billion while YouTube ad sales rose 4.5% to $7.67 billion, and came in just ahead of Street forecasts. Google cloud revenues were up $8.03 billion, also ahead of analysts' estimates.
Google's bottom line came in at $1.44 per share over the three months ending in June, compared to last year's split-adjusted figure of $1.21 per share, a tally that top Street forecasts by around 10 cents per share.
“There’s exciting momentum across our products and the company, which drove strong results this quarter," said CEO Sundar Pichai. "Our continued leadership in AI and our excellence in engineering and innovation are driving the next evolution of Search, and improving all our services."
"With fifteen products that each serve half a billion people, and six that serve over two billion each, we have so many opportunities to deliver on our mission,” he added.
Google shares were marked 7% higher in after-hours trading immediately following the earnings release to indicate a Wednesday opening bell price of $130.50 each.
Porat, Google said, will transition to the newly-created role of president and chief investment officer of Alphabet and Google, starting on Sept. 1, and will continue to serve as group CFO "including leading the company's 2024 and long-range capital planning processes, while the company searches for and selects her successor."
She will report directly to CEO Pichai.
"In her new role, Ruth will be responsible for Alphabet's investments in its Other Bets portfolio, working closely with Sundar, and the company's investments in countries and communities around the world," Google said. "Alphabet's investments span numerous sectors and are engines of economic growth globally. She will also focus on engagement with policymakers and regulators regarding employment, economic opportunity, competitiveness, and infrastructure expansion."
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