Financial statements glossary
A glossary of terms you’ll find on Alphabet financial statements.
- Includes our main products such as Ads, Android, Chrome, Commerce, Google Cloud, Google Maps, Google Play, Hardware (including Nest), Search, and YouTube. Our technical infrastructure and some newer efforts like virtual reality are also included in Google.
- Google generates revenues primarily from advertising; sales of apps, in-app purchases, digital content products, and hardware; and licensing and service fees, including fees received for Google Cloud offerings.
- Includes businesses such as Access/Fiber, Calico, CapitalG, Chronicle, GV, Verily, Waymo and X.
- Revenues from the Other Bets are derived primarily through the sales of internet and TV services through Access/Fiber, as well as licensing and R&D services through Verily.
Revenues and monetization
Advertising revenue: Google properties
- Advertising revenues that are generated on Google search properties which includes revenues from traffic generated by search distribution partners who use Google.com as their default search in browsers, toolbars, etc.
- Other Google owned and operated properties like Gmail, Google Maps, Google Play and YouTube
Advertising revenue: Google Network Members’ properties
- Advertising revenues generated from advertisements served on Google Network Members' properties participating in: AdMob, AdSense (such as AdSense for Content, AdSense for Search, etc.) and Google Ad Manager (includes what was formerly DoubleClick AdExchange)
Google Other revenues
- Revenues from apps, in-app purchases, and digital content (such as movies or e-books) in the Google Play store. Revenues from app sales and in-app purchases are recorded on our income statement net of payout to the developer. Sales of certain digital content on the Play store are recorded on a gross basis.
- Google Cloud offerings, which primarily includes Google Cloud Platform and G Suite
- Hardware, including Chromecast, Google Home products, Google Wifi, Nest products, Pixel phones and Pixelbook
- YouTube Music, YouTube Premium and YouTube TV subscription fees
- Fees paid by merchants and customers of our Google Express service
- Other miscellaneous products and services
Monetization: Paid clicks on Google properties
- Clicks on ads by end-users related to searches on Google.com
- Clicks related to ads on other owned and operated properties including Gmail, Google Maps, and Google Play
- Viewed YouTube engagement ads
- CPM-based ads are not included in our reported Google properties paid clicks
Monetization: Impressions on Google Network Members' properties
- Include impressions displayed to users served on Google Network Members' properties participating primarily in AdMob, AdSense for Content, AdSense for Search, and Google Ad Manager (includes what was formerly DoubleClick AdExchange)
Traffic acquisition costs (TAC) paid to distribution partners
- Amounts paid to make available our search access points and services
- Distribution partners include browser providers, mobile carriers, original equipment manufacturers, and software developers
TAC to Google Network Members
- Amounts paid to Google Network Members primarily for ads displayed on their properties
Other cost of revenues
- Amortization of certain intangible assets
- Content acquisition costs primarily related to payments to content providers from whom we license video and other content for distribution on YouTube and Google Play (we pay fees to these content providers based on revenues generated or a flat fee)
- Credit card and other transaction fees related to processing customer transactions
- Expenses associated with our data centers and other operations (including bandwidth, compensation expenses (including stock-based compensation), depreciation, energy, and other equipment costs)
- Inventory related costs for hardware we sell
Note: All information is as of October 25, 2018, and we undertake no duty to update this information unless required by law.