Company: GOOGL
Filing Date: 2025-04-25
Form Type: 10-Q
Source: 0001652044-25-000043
Chunk: 122

Company: Alphabet Inc.
Filing Date: 2025-04-25
Form: 10-Q
Item: Part I, Item 8
Chunk 122
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AC rate on Google Search & other revenues increased from the three months ended March 31, 2024 to the three months ended March 31, 2025 primarily due to increases related to mobile searches, which carries higher TAC because more mobile searches are channeled through paid access points. The TAC rate on Google Network revenues decreased from the three months ended March 31, 2024 to the three months ended March 31, 2025 due to a combination of factors, none of which were individually significant.

The increase in other cost of revenues from the three months ended March 31, 2024 to the three months ended March 31, 2025 was primarily due to increases in content acquisition costs, largely for YouTube,  depreciation expense, and other technical infrastructure operations costs.

39

Research and Development

The following table presents R&D expenses (in millions, except percentages):Three Months Ended March 31, 20242025Research and development expenses$11,903 $13,556 Research and development expenses as a percentage of revenues15 %15 %

R&D expenses increased $1.7 billion from the three months ended March 31, 2024 to the three months ended March 31, 2025, primarily driven by increases in employee compensation expenses of $697 million and depreciation expense of $491 million.

Sales and Marketing

The following table presents sales and marketing expenses (in millions, except percentages):

Three Months Ended March 31, 20242025Sales and marketing expenses$6,426 $6,172 Sales and marketing expenses as a percentage of revenues8 %7 %

Sales and marketing expenses decreased $254 million from the three months ended March 31, 2024 to the three months ended March 31, 2025 primarily driven by a decrease in employee compensation expenses of $307 million.

General and Administrative

The following table presents general and administrative expenses (in millions, except percentages):Three Months Ended March 31, 20242025General and administrative expenses$3,026 $3,539 General and administrative expenses as a percentage of revenues4 %4 %

General and administrative expenses increased $513 million from the three months ended March 31, 2024 to the three months ended March 31, 2025, primarily driven by an increase in charges related to legal and other matters of $292 million and a combination of other factors, none of which were individually significant.

Segment Profitability