Here are the four things Google CFO Ruth Porat wants investors to keep in mind
Advertisement
Advertisement
The stock went wild, zooming up about 11%.
Besides the stock rocketship, this was a particularly significant earnings report because it's the last one before the company starts breaking out Google's business as separate from the other subsidiaries created under new parent company Alphabet.
Complimentary Tech Event
Transform talent with learning that works
Capability development is critical for businesses who want to push the envelope of innovation.Discover how business leaders are strategizing around building talent capabilities and empowering employee transformation.Know More
In her prepared remarks, CFO Ruth Porat highlighted four key themes to set the tone for the company moving forward.
Porat, who joined Google from Morgan Stanley last quarter, has been a hit with Wall Street so far.
Advertisement
Here are the four key themes she talked about:
- Google is growing thanks to mobile search, while small businesses like Nest and moonshot projects like self-driving cars will make money some day. "First, in terms of revenues, our strong revenue growth in Q3 reflects the ongoing momentum in Google, with acceleration in mobile search complemented by the strength of YouTube and Programmatic. The Other Bets are earlier stage businesses, which we believe have significant longer term revenue potential. In the near term the focus there is on optimizing our investments."
- You'll soon be able to see how strong Google is. "Second, with respect to profitability we remain focused on managing expenses within our control, while investing to support the growth areas we have in Google and Other Bets. Segment reporting, by definition, provides greater insight into the profit dynamics within Alphabet."
- We're going to continue to spend more money on our exciting projects like super-fast internet initiative Google Fiber. "Third, as to capex [capital expenditures] the vast majority to-date of course has been to support Google, where we will continue to invest given to our exciting opportunities globally. As the same time, capex in Other Bets is expected to increase through next year as we continue to execute in the growth agenda there, in particular in Access and Energy, which contains our Fiber business, among other efforts."
- We have a lot of cash, so if we see a really important opportunity we'll take it. "Fourth, our growing cash balance remains a powerful tool, giving us the flexibility to invest in the breadth of opportunity we have in Google and Other Bets as well as selectively pursue compelling new bets." Google has almost $73 billion in cash and marketable securities.
NOW WATCH: How to supercharge your iPhone in 5 minutes
Advertisement
- Colon cancer rates are rising in young people. If you have two symptoms you should get a colonoscopy, a GI oncologist says.
- I spent $2,000 for 7 nights in a 179-square-foot room on one of the world's largest cruise ships. Take a look inside my cabin.
- An Ambani disruption in OTT: At just ₹1 per day, you can now enjoy ad-free content on JioCinema
- SC rejects pleas seeking cross-verification of votes cast using EVMs with VVPAT
- Ultraviolette F77 Mach 2 electric sports bike launched in India starting at ₹2.99 lakh
- Deloitte projects India's FY25 GDP growth at 6.6%
- Italian PM Meloni invites PM Modi to G7 Summit Outreach Session in June
- Markets rally for 6th day running on firm Asian peers; Tech Mahindra jumps over 12%