In a statement, Alphabet CEO Page said, “Sundar has been doing a great job as Google’s CEO, driving strong growth, partnerships, and tremendous product innovation. I really enjoy working with him and I’m excited that he is joining the Alphabet board.”
The company reported a 21 percent jump in quarterly revenue on Monday, maintaining a growth rate that is rarely seen among companies its size and suggesting the big sales gains enjoyed recently by the other Internet firms are not done yet.
Alphabet, the owner of Google and YouTube, said it made $3.5 billion (roughly Rs. 22,532 crores) in net income on sales of $26 billion (roughly Rs. 1,67,384 crores). The profit would have been much larger but for a record $2.7 billion European Union antitrust fine.
Still, the company noted that costs were rising faster than sales and warned that expenses would remain high as more searches shift to mobile devices.
The squeeze on expected future profit appeared to weigh on Alphabet’s share price, which fell about 3 percent to $967 after the bell. Shares had closed up in regular trading and have gained 26 percent for the year.
Alphabet’s cost of revenue, a measure of how much money the company must spend to keep its platforms running before added costs such as research, rose 28 percent, well above the growth in revenue itself.
With its latest profits, Alphabet reported $15.7 billion in cash and cash equivalents, and another $79 billion in marketable securities.