Google satisfies Q2 expectations as new CFO takes charge

"We are focused every day on developing big new opportunities across a wide range of businesses," wrote Google's new CFO.


Expectations had been running high all day, but Google satisfied Wall Street wishes with its second quarter financial results published after the bell on Thursday.

The tech giant reported a net income of $3.931 billion, or $4.93 per share (statement).

Non-GAAP earnings were $6.99 per share on a revenue of $17.7 billion, up 11 percent year-over-year.

Analysts were looking for earnings of just $6.70 per share with $17.7 billion in revenue overall.

Traffic acquisition costs totaled approximately $3.377 billion, meaning revenue excluding TAC would ring up to approximately $14.323 billion.

Although it doesn't look to have caused as much of a dent this quarter as it did three months ago, the stronger U.S. dollar did affect results somewhat.

According to Google, if "foreign exchange rates remained constant from the second quarter of 2014 through the second quarter of 2015," then Q2 revenue would have been $1,103 million higher with a constant currency growth rate of 18 percent annually.


Nevertheless, shareholders must have been pleased as Google stock started to soar by as much as seven percent initially in after-hours trading.

On her first quarterly earnings report as chief financial officer, Google's new CFO Ruth Porat attributed the "solid" results to growth "across the breadth of our products, most notably core search, where mobile stood out, as well as YouTube and programmatic advertising."

"We are focused every day on developing big new opportunities across a wide range of businesses," Porat wrote. "We will do so with great care regarding resource allocation."

Previously CFO at Morgan Stanley, Porat was appointed to the job in March after Google's former CFO Patrick Pichette announced his retirement earlier that month.

For the current quarter, Wall Street is looking for non-GAAP earnings of $6.99 per share with $18.54 billion in revenue.

Screenshot via Google Investor Relations