Financial statements glossary
A glossary of terms you’ll find on Alphabet financial statements.
- Includes our main internet products such as Search, Ads, Commerce, Maps, YouTube, Apps, Cloud, Android, Chrome, Google Play as well as hardware products we sell, such as the Pixel phone, Google Home, Chromecast, and the Daydream View VR headset. Our technical infrastructure and some newer efforts like Virtual Reality are also included in Google.
- Google generates revenues primarily from advertising, sales of digital content, apps and cloud offerings for enterprise, and sales of hardware.
- Includes businesses such as Access/Google Fiber, Calico, capitalG, GV, Nest, Verily, X and other initiatives.
- Revenues from the Other Bets are derived primarily through the sales of Nest hardware products, internet and TV services through Google Fiber, and licensing and R&D services through Verily.
Revenues and monetization
Advertising revenue: Google websites
- AdWords revenue that is generated on Google.com. This includes revenue from traffic generated by search distribution partners who use Google.com as their default search in browsers, toolbars, etc.
- Advertising revenue generated on YouTube, including, but not limited to YouTube TrueView and Google Preferred
- Advertising revenue generated from other Google owned and operated properties like Gmail, Finance, Maps, and Google Play
Advertising revenue: Google Network Members’ websites
- AdSense (such as AdSense for Search, AdSense for Content, etc.)
- All DoubleClick-related revenues including AdExchange and DoubleClick Bid Manager revenues
Google Other revenues
- Sales of apps and media content in Google Play. Revenues from app sales are recorded on our income statement net of payout to the developer.
- Sales of certain consumer devices, where we are the seller of record, such as Chromecast, the Pixel phone, Google Home and Daydream View VR headset.
- Service fees received for our Google Cloud offerings, which includes G Suite and our Maps API.
- YouTube Red subscription fees
- Licensing of ITA software
- All other Google licensing-related revenue, including the licensing of web search services where we help power organic searches on partners’ sites
- Fees paid by merchants and customers of our Google Express service
Monetization: Paid clicks on Google websites
- Clicks on ads by end users related to searches on Google.com
- Clicks related to ads on other owned and operated properties including Gmail, Finance, Maps, and Google Play
- Viewed YouTube engagement ads like TrueView (counted as an engagement when the user chooses NOT to skip the ad) and certain trial ad formats
- CPM-based ads are not included in our reported websites paid clicks
Monetization: Paid clicks on Google Network Members’ websites
- Clicks by end users related to ads served on Google Network Members’ properties participating in our AdSense for Search, AdSense for Content and AdMob businesses
- CPM-based ads, such as programmatic and reservation based ad buying, are not included in our reported Network paid clicks
Traffic acquisition costs (TAC) paid to distribution partners
- Amounts paid to make available our access points and services
- Distribution partners include software developers, browser providers, mobile carriers, and original equipment manufacturers
TAC to Google Network Members
- Revenue share payments we make to those parties that allow us to place ads on their websites
- AdSense (such as AdSense for Search, AdSense for Content, etc.). Note that our AdSense for Search revenue (and associated TAC) includes amounts earned through partners that place and monetize our search technologies on their own properties (not Google.com).
Other cost of revenues
- Content acquisition costs primarily related to payments to certain content providers from whom we license their video and other content for distribution on YouTube and Google Play (we share the fees these sales generate with content providers or pay a fixed fee to these content providers)
- Data center operation costs (including depreciation, labor, energy, and bandwidth costs)
- Inventory costs for hardware we sell
- Stock-based compensation for employees working on activities and products related to Cost of Revenues
- Credit card and other transaction fees related to processing customer transactions
- Amortization of certain intangible assets
Note: All information is as of November 2016, and we undertake no duty to update this information unless required by law.