Alphabet gains on revenue beat; CFO Porat adds on new roles
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Alphabet stock was higher in early postmarket action -- (NASDAQ:GOOG) +6.5%, (NASDAQ:GOOGL) +6.8% -- following a second-quarter earnings report where it beat expectations on top and bottom lines thanks in part to strong Google search advertising.
Revenues overall rose 7% to $74.6B, easily beating forecasts for a 4.4% gain. Of that, Google Search and other revenue rose 4.8% to $42.6B. YouTube ads rose 4.4% to $7.67B, and Google Network ads dipped to $7.85B from $8.26B.
Google Other revenue, though, jumped 24% to $8.14B. And the trajectory for Google Cloud remained strong, with revenues rising 28% to $8.03B.
Operating income rose more than 12% to $21.8B -- chiefly in Google Services. But notably, Google Cloud operating income turned positive, and operating losses at the company's skunk-works "Other Bets" segment were slashed to $813M.
The company also announced plans for a change in its chief financial officer role. Ruth Porat will continue to serve as CFO while taking on the newly created role of chief investment officer and president of Alphabet and Google, effective Sept. 1. She'll lead 2024 and long-range capital planning while the company seeks a CFO successor.
The company took severance and related charges of $2B for the six months ended June 30 tied to workforce reduction. And given actions to optimize office space, total charges recorded there were $633M.
Conference call to come at 5 p.m. ET.

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