Wednesday, July 26, 2023

Alphabet Reports Better-Than-Expected Quarterly Results


Alphabet shares rose about 7% in extended trading on Tuesday after the company reported better-than-expected revenue and profit, driven by growth in its cloud-computing unit, according to CNBC.

  • Earnings: $1.44 per share vs. $1.34 per share, adjusted, expected
  • Revenue: $74.6 billion vs. $72.82 billion expected

The company also reported the following numbers:

  • YouTube ads: $7.67 billion vs. $7.43 billion expected
  • Google Cloud: $8.03 billion vs. $7.87 billion
  • Traffic acquisition costs:  $12.54 billion vs. $12.37 billion
  • Revenue rose 7% to $74.6 billion for the second quarter.

For the fourth straight quarter, Google’s parent company reported growth in the single digits as it reckons with a pullback in digital ad spending that reflects concerns about the economy. Analysts don’t expect growth to hit double digits again until the fourth quarter.

Google’s ad revenue rose 3.3% to $58.14 billion, up from $56.29 billion last year. YouTube ads came in above analyst expectations at $7.67 billion, up from $7.34 billion the year before. The video platform has faced heightened competition from TikTok in short-form videos.

Google’s “search and other” revenue rose to $42.63 billion, up slightly from last year.

Separately, Alphabet said Ruth Porat, the company’s finance chief, will be leaving that role after eight years to assume the newly created position of president and chief investment officer. Porat will remain CFO “while the company searches for and selects her successor,” the press release said. Her new role will include oversight of the Other Bets portfolio.

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