Company: GOOGL
Filing Date: 2025-07-24
Form Type: 10-Q
Source: 0001652044-25-000062
Chunk: 145

Company: Alphabet Inc.
Filing Date: 2025-07-24
Form: 10-Q
Item: Part I, Item 8
Chunk 145
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 the Google Search & other TAC rate. The TAC rate on Google Search & other revenues increased from the three and six months ended June 30, 2024 to the three and six months ended June 30, 2025 primarily due to increases related to mobile searches. The TAC rate on Google Network revenues was substantially consistent from the three months ended June 30, 2024 to the three months ended June 30, 2025 and decreased from the six months ended June 30, 2024 to the six months ended June 30, 2025 due to a combination of factors, none of which were individually significant.

The increase in other cost of revenues from the three and six months ended June 30, 2024 to the three and six months ended June 30, 2025 was primarily due to increases in content acquisition costs, largely for YouTube, depreciation expense, and certain app and platform distribution costs.

Research and Development

The following table presents R&D expenses (in millions, except percentages):Three Months EndedSix Months Ended June 30,June 30, 2024202520242025Research and development expenses$11,860 $13,808 $23,763 $27,364 Research and development expenses as a percentage of revenues14 %14 %14 %15 %

R&D expenses increased $1.9 billion and $3.6 billion from the three and six months ended June 30, 2024 to the three and six months ended June 30, 2025, primarily driven by increases in employee compensation expenses of $851 million and $1.5 billion as well as depreciation expense of $575 million and $1.1 billion, respectively.

Sales and Marketing

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

Three Months EndedSix Months Ended June 30,June 30, 2024202520242025Sales and marketing expenses$6,792 $7,101 $13,218 $13,273 Sales and marketing expenses as a percentage of revenues8 %7 %8 %7 %

Sales and marketing expenses increased $309 million from the three months ended June 30, 2024 to the three months ended June 30, 2025, primarily driven by an increase in advertising and promotional activities of $305 million.

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Sales and marketing expenses increased $55 million from the six months ended June 30, 202