Google ad revenue recovers; CFO Ruth Porat to take on new role
Google’s parent company Alphabet Inc has reversed its ad revenue slump for the past two consecutive quarters, with ad sales up 3% from a year ago, for the quarter ended 30 June.
Alphabet posted $58.14 billion (A$85.67 billion) in ad revenue during its latest quarterly earnings. Google search and others received $42.6 billion (A$62.74 billion) in ad revenue, while YouTube ads gathered $7.66 billion (A$11.28 billion).
[click to enlarge]: financial highlights
Google Cloud also had a significant revenue boost year-on-year to $8.03 billion (A$11.82 billion) this quarter.
Total revenue increased 7% to $74.6 billion (A$109.88 billion). The operating income was $21.83 billion (A$32.15 billion) in the second quarter, with a 29% operating margin.
Alphabet’s headcount now sits at 181,798, with a majority of employees affected by the redundancies earlier in the year no longer included.
[click to enlarge]: Revenues, Traffic Acquisition Costs (TAC), and Number of Employees
The group announced that Ruth Porat will assume the newly created role of president and chief investment officer of Alphabet and Google in September, after eight years as the chief financial officer.
Porat said of the quarterly result: “Our financial results reflect continued resilience in Search, with an acceleration of revenue growth in both Search and YouTube, as well as momentum in Cloud.
“We continue investing for growth, while prioritizing our efforts to durably reengineer our cost base company-wide and create capacity to deliver sustainable value for the long term.”
Sundar Pichai, CEO of Alphabet and Google, said: “There’s exciting momentum across our products and the company, which drove strong results this quarter.
“Our continued leadership in AI and our excellence in engineering and innovation are driving the next evolution of Search, and improving all our services.”
Alphabet’s share closed at $121.53 (A$179.01) on 25 July, while the price soared after hours. It currently has a market cap of $1.55 trillion (A$2.28 trillion) .
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Darcy Song is a reporter at Mumbrella, covering media owners, adtech and social platforms. She joined in March 2022 as an editorial assistant.
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