Company: GOOGL
Filing Date: 2025-04-25
Form Type: 10-Q
Source: 0001652044-25-000043
Chunk: 9

Company: Alphabet Inc.
Filing Date: 2025-04-25
Form: 10-Q
Item: Part I, Item 2
Chunk 9
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)Total constant currency revenues of $91.6 billion for the three months ended March 31, 2025 increased $11.1 billion compared to $80.5 billion in revenues, excluding hedging effect, for the three months ended March 31, 2024.

EMEA revenue growth was unfavorably affected by changes in foreign currency exchange rates, primarily due to the U.S. dollar strengthening relative to the euro.

APAC revenue growth was unfavorably affected by changes in foreign currency exchange rates, primarily due to the U.S. dollar strengthening relative to the Japanese yen, Australian dollar, and South Korean won.

Other Americas revenue growth was unfavorably affected by changes in foreign currency exchange rates, primarily due to the U.S. dollar strengthening relative to the Brazilian real.

Costs and Expenses

Cost of Revenues

The following table presents cost of revenues, including TAC (in millions, except percentages):Three Months Ended March 31, 20242025TAC$12,946 $13,748 Other cost of revenues20,766 22,613 Total cost of revenues$33,712 $36,361 Total cost of revenues as a percentage of revenues42 %40 %

Cost of revenues increased $2.6 billion from the three months ended March 31, 2024 to the three months ended March 31, 2025 due to an increase in other cost of revenues and TAC of $1.8 billion and $802 million, respectively. 

The increase in TAC from the three months ended March 31, 2024 to the three months ended March 31, 2025 was largely due to an increase in TAC paid to distribution partners, primarily driven by growth in revenues subject to TAC. The TAC rate decreased from 21.0% to 20.6% from the three months ended March 31, 2024 to the three months ended March 31, 2025 primarily due to a revenue mix shift from Google Network properties to Google Search & other properties. The TAC 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