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1、UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington,D.C.20549_FORM 10-Q _(Mark One)QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934For the quarterly period ended March 31,2025ORTRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT

2、 OF 1934For the transition period from _ to _Commission file number:001-37580 _Alphabet Inc.(Exact name of registrant as specified in its charter)_Delaware61-1767919(State or other jurisdiction of incorporation or organization)(I.R.S.Employer Identification Number)1600 Amphitheatre ParkwayMountain V

3、iew,CA 94043(Address of principal executive offices,including zip code)(650)253-0000(Registrants telephone number,including area code)Securities registered pursuant to Section 12(b)of the Act:Title of each classTrading Symbol(s)Name of each exchange on which registeredClass A Common Stock,$0.001 par

4、 valueGOOGLNasdaq Stock Market LLC(Nasdaq Global Select Market)Class C Capital Stock,$0.001 par valueGOOGNasdaq Stock Market LLC(Nasdaq Global Select Market)_Indicate by check mark whether the registrant:(1)has filed all reports required to be filed by Section 13 or 15(d)of the Securities Exchange A

5、ct of 1934 during the preceding 12 months(or for such shorter period that the registrant was required to file such reports),and(2)has been subject to such filing requirements for the past 90 days.Yes No Indicate by check mark whether the registrant has submitted electronically every Interactive Data

6、 File required to be submitted pursuant to Rule 405 of Regulation S-T(232.405 of this chapter)during the preceding 12 months(or for such shorter period that the registrant was required to submit such files).Yes No Indicate by check mark whether the registrant is a large accelerated filer,an accelera

7、ted filer,a non-accelerated filer,a smaller reporting company,or an emerging growth company.See the definitions of“large accelerated filer,”“accelerated filer,”“smaller reporting company,”and emerging growth company in Rule 12b-2 of the Exchange Act.Large accelerated filer Accelerated filerNon-accel

8、erated filer Smaller reporting companyEmerging growth companyIf an emerging growth company,indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a)of the Exch

9、ange Act.Indicate by check mark whether the registrant is a shell company(as defined in Rule 12b-2 of the Exchange Act).Yes No As of April 17,2025,there were 5,820 million shares of Alphabets Class A stock outstanding,856 million shares of Alphabets Class B stock outstanding,and 5,459 million shares

10、 of Alphabets Class C stock outstanding.Alphabet Inc.Form 10-QFor the Quarterly Period Ended March 31,2025 TABLE OF CONTENTS Page No.Note About Forward-Looking Statements3PART I.FINANCIAL INFORMATIONItem 1Financial Statements5Consolidated Balance Sheets-December 31,2024 and March 31,20255Consolidate

11、d Statements of Income-Three Months Ended March 31,2024 and 20256Consolidated Statements of Comprehensive Income-Three Months Ended March 31,2024 and 20257Consolidated Statements of Stockholders Equity-Three Months Ended March 31,2024 and 20258Consolidated Statements of Cash Flows-Three Months Ended

12、 March 31,2024 and 20259Notes to Consolidated Financial Statements10Item 2Managements Discussion and Analysis of Financial Condition and Results of Operations32Item 3Quantitative and Qualitative Disclosures About Market Risk46Item 4Controls and Procedures46PART II.OTHER INFORMATIONItem 1Legal Procee

13、dings47Item 1A Risk Factors47Item 2Unregistered Sales of Equity Securities and Use of Proceeds47Item 5Other Information47Item 6Exhibits48Signatures49Table of ContentsAlphabet Inc.2Note About Forward-Looking StatementsThis Quarterly Report on Form 10-Q contains forward-looking statements within the m

14、eaning of the Private Securities Litigation Reform Act of 1995.These include,among other things,statements regarding:the growth of our business and revenues and our expectations about the factors that influence our success and trends in our business;fluctuations in our revenues and margins and vario

15、us factors contributing to such fluctuations;our expectation that the continuing shift to an online world as the digital economy evolves will continue to benefit our business;our expectation that the revenues that we derive beyond advertising will continue to increase and may affect our margins;our

16、expectation that our traffic acquisition costs(TAC)and the associated TAC rate will fluctuate,which could affect our overall margins;our expectation that our monetization trends will fluctuate,which could affect our revenues and margins;fluctuations in paid clicks and cost-per-click as well as impre

17、ssions and cost-per-impression,and various factors contributing to such fluctuations;our expectation that we will continue to periodically review,refine,and update our methodologies for monitoring,gathering,and counting the number of paid clicks and impressions,and for identifying the revenues gener

18、ated by the corresponding click and impression activity;our expectation that our results will be affected by our performance in international markets as users in developing economies increasingly come online;our expectation that our foreign exchange risk management program will not fully offset our

19、net exposure to fluctuations in foreign currency exchange rates;the expected variability of gains and losses related to hedging activities under our foreign exchange risk management program;the amount and timing of revenue recognition from customer contracts with commitments for performance obligati

20、ons,including our estimate of the remaining amount of commitments and when we expect to recognize revenue;our expectation that our capital expenditures will increase,including our expected spend and the expected increase in our technical infrastructure investment to support the growth of our busines

21、s and our long-term initiatives,in particular in support of artificial intelligence(AI)products and services;our plans to continue to invest in new businesses,products,services and technologies,and systems,as well as to continue to invest in acquisitions and strategic investments;our pace of hiring

22、and our plans to provide competitive compensation programs;our expectation that our cost of revenues,research and development(R&D)expenses,sales and marketing expenses,and general and administrative expenses may increase in amount and/or may increase as a percentage of revenues and may be affected b

23、y a number of factors;estimates of our future employee compensation expenses;our expectation that our other income(expense),net(OI&E),will fluctuate in the future,as it is largely driven by market dynamics;our expectation that our effective tax rate and cash tax payments could increase in future yea

24、rs;seasonal fluctuations in internet usage,advertising expenditures,and underlying business trends such as traditional retail seasonality,which are likely to cause fluctuations in our quarterly results;the sufficiency of our sources of funding;our potential exposure in connection with new and pendin

25、g investigations,proceedings,and other contingencies,including the possibility that certain legal proceedings to which we are a party could harm our business,financial condition,and operating results;Table of ContentsAlphabet Inc.3our expectation that we will continue to face heightened regulatory s

26、crutiny,and changes in regulatory conditions,laws,and public policies,which could affect our business practices and financial results;the expected timing,amount,and effect of Alphabet Inc.s share repurchases and dividends;our long-term sustainability goals;our expectations regarding the timing and s

27、uccessful closing and integration of the Wiz,Inc.(Wiz)acquisition,including the realization of anticipated benefits;andongoing developments surrounding international trade and the related impact on the macroeconomic environment and our business;as well as other statements regarding our future operat

28、ions,financial condition and prospects,and business strategies.Forward-looking statements may appear throughout this report and other documents we file with the Securities and Exchange Commission(SEC),including without limitation,the following sections:Part I,Item 2,Managements Discussion and Analys

29、is of Financial Condition and Results of Operations in this Quarterly Report on Form 10-Q and Part I,Item 1A,“Risk Factors”in our Annual Report on Form 10-K for the fiscal year ended December 31,2024.Forward-looking statements generally can be identified by words such as anticipates,believes,could,e

30、stimates,expects,intends,may,plans,predicts,projects,will be,will continue,will likely result,and similar expressions.These forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties,which could cause our actual results to differ material

31、ly from those reflected in the forward-looking statements.Factors that could cause or contribute to such differences include,but are not limited to,those discussed in this Quarterly Report on Form 10-Q;the risks discussed in Part I,Item 1A,Risk Factors and the trends discussed in Part II,Item 7,Mana

32、gements Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the fiscal year ended December 31,2024;and those discussed in other documents we file with the SEC.We undertake no obligation to revise or publicly release the results of any revisi

33、on to these forward-looking statements,except as required by law.Given these risks and uncertainties,readers are cautioned not to place undue reliance on such forward-looking statements.As used herein,Alphabet,the company,we,us,our,and similar terms include Alphabet Inc.and its subsidiaries,unless t

34、he context indicates otherwise.Alphabet,Google,and other trademarks of ours appearing in this report are our property.We do not intend our use or display of other companies trade names or trademarks to imply an endorsement or sponsorship of us by such companies,or any relationship with any of these

35、companies.Table of ContentsAlphabet Inc.4PART I.FINANCIAL INFORMATIONITEM 1.FINANCIAL STATEMENTSAlphabet Inc.CONSOLIDATED BALANCE SHEETS(in millions,except par value per share amounts)As of December 31,2024As ofMarch 31,2025(unaudited)AssetsCurrent assets:Cash and cash equivalents$23,466$23,264 Mark

36、etable securities 72,191 72,064 Total cash,cash equivalents,and marketable securities 95,657 95,328 Accounts receivable,net 52,340 51,000 Other current assets 15,714 15,724 Total current assets 163,711 162,052 Non-marketable securities 37,982 51,029 Deferred income taxes 17,180 18,386 Property and e

37、quipment,net 171,036 185,062 Operating lease assets 13,588 13,722 Goodwill 31,885 32,173 Other non-current assets 14,874 12,950 Total assets$450,256$475,374 Liabilities and Stockholders EquityCurrent liabilities:Accounts payable$7,987$8,497 Accrued compensation and benefits 15,069 9,984 Accrued expe

38、nses and other current liabilities 51,228 58,300 Accrued revenue share 9,802 9,965 Deferred revenue 5,036 4,908 Total current liabilities 89,122 91,654 Long-term debt 10,883 10,886 Income taxes payable,non-current 8,782 9,773 Operating lease liabilities 11,691 11,678 Other long-term liabilities 4,69

39、4 6,116 Total liabilities 125,172 130,107 Commitments and Contingencies(Note 10)Stockholders equity:Preferred stock,$0.001 par value per share,100 shares authorized;no shares issued and outstanding 0 0 Class A,Class B,and Class C stock and additional paid-in capital,$0.001 par value per share:300,00

40、0 shares authorized(Class A 180,000,Class B 60,000,Class C 60,000);12,211(Class A 5,835,Class B 861,Class C 5,515)and 12,155(Class A 5,825,Class B 856,Class C 5,474)shares issued and outstanding 84,800 86,725 Accumulated other comprehensive income(loss)(4,800)(4,086)Retained earnings 245,084 262,628

41、 Total stockholders equity 325,084 345,267 Total liabilities and stockholders equity$450,256$475,374 See accompanying notes.Table of ContentsAlphabet Inc.5Alphabet Inc.CONSOLIDATED STATEMENTS OF INCOME(in millions,except per share amounts;unaudited)Three Months EndedMarch 31,20242025Revenues$80,539$

42、90,234 Costs and expenses:Cost of revenues 33,712 36,361 Research and development 11,903 13,556 Sales and marketing 6,426 6,172 General and administrative 3,026 3,539 Total costs and expenses 55,067 59,628 Income from operations 25,472 30,606 Other income(expense),net 2,843 11,183 Income before inco

43、me taxes 28,315 41,789 Provision for income taxes 4,653 7,249 Net income$23,662$34,540 Basic net income per share(Note 12)$1.91$2.84 Diluted net income per share(Note 12)$1.89$2.81 See accompanying notes.Table of ContentsAlphabet Inc.6Alphabet Inc.CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME(in m

44、illions;unaudited)Three Months Ended March 31,20242025Net income$23,662$34,540 Other comprehensive income(loss):Change in foreign currency translation adjustment,net of income tax benefit(expense)of$(18)and$45(503)663 Available-for-sale investments:Change in net unrealized gains(losses)(360)645 Less

45、:reclassification adjustment for net(gains)losses included in net income 311 (84)Net change,net of income tax benefit(expense)of$14 and$(159)(49)561 Cash flow hedges:Change in net unrealized gains(losses)186 (313)Less:reclassification adjustment for net(gains)losses included in net income(71)(197)Ne

46、t change,net of income tax benefit(expense)of$(23)and$131 115 (510)Other comprehensive income(loss)(437)714 Comprehensive income$23,225$35,254 See accompanying notes.Table of ContentsAlphabet Inc.7Alphabet Inc.CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY(in millions;unaudited)Three Months Ended Ma

47、rch 31,2024 Class A,Class B,Class C Stock and Additional Paid-In CapitalAccumulatedOtherComprehensiveIncome(Loss)RetainedEarningsTotalStockholdersEquity SharesAmountBalance as of December 31,2023 12,460$76,534$(4,402)$211,247$283,379 Stock issued 32 0 0 0 0 Stock-based compensation 0 5,293 0 0 5,293

48、 Tax withholding related to vesting of restricted stock units and other 0 (2,996)0 0 (2,996)Repurchases of stock(111)(918)0 (15,139)(16,057)Net income 0 0 0 23,662 23,662 Other comprehensive income(loss)0 0 (437)0 (437)Balance as of March 31,2024 12,381$77,913$(4,839)$219,770$292,844 Three Months En

49、ded March 31,2025 Class A,Class B,Class C Stock and Additional Paid-In CapitalAccumulatedOtherComprehensiveIncome(Loss)RetainedEarningsTotalStockholdersEquity SharesAmountBalance as of December 31,2024 12,211$84,800$(4,800)$245,084$325,084 Stock issued 27 0 0 0 0 Stock-based compensation 0 5,553 0 0

50、 5,553 Tax withholding related to vesting of restricted stock units and other 0 (3,240)0 0 (3,240)Repurchases of stock(83)(815)0 (14,486)(15,301)Dividends and dividend equivalents declared($0.20 per share)0 27 0 (2,510)(2,483)Sale of interest in consolidated entities 0 400 0 0 400 Net income 0 0 0 3

51、4,540 34,540 Other comprehensive income(loss)0 0 714 0 714 Balance as of March 31,2025 12,155$86,725$(4,086)$262,628$345,267 See accompanying notes.Table of ContentsAlphabet Inc.8Alphabet Inc.CONSOLIDATED STATEMENTS OF CASH FLOWS(in millions;unaudited)Three Months EndedMarch 31,20242025Operating act

52、ivitiesNet income$23,662$34,540 Adjustments:Depreciation of property and equipment 3,413 4,487 Stock-based compensation expense 5,264 5,516 Deferred income taxes 419 (1,152)Loss(gain)on debt and equity securities,net(1,781)(9,960)Other 334 481 Changes in assets and liabilities,net of effects of acqu

53、isitions:Accounts receivable,net 3,167 1,638 Income taxes,net 3,011 7,197 Other assets(1,000)(1,288)Accounts payable(2,124)(880)Accrued expenses and other liabilities(5,054)(5,045)Accrued revenue share(322)116 Deferred revenue(141)500 Net cash provided by operating activities 28,848 36,150 Investing

54、 activitiesPurchases of property and equipment(12,012)(17,197)Purchases of marketable securities(20,684)(18,453)Maturities and sales of marketable securities 24,985 20,345 Purchases of non-marketable securities(1,206)(958)Maturities and sales of non-marketable securities 313 259 Acquisitions,net of

55、cash acquired,and purchases of intangible assets(61)(340)Other investing activities 101 150 Net cash used in investing activities(8,564)(16,194)Financing activitiesNet payments related to stock-based award activities(2,929)(3,110)Repurchases of stock(15,696)(15,068)Dividend payments 0 (2,434)Proceed

56、s from issuance of debt,net of costs 1,982 4,532 Repayments of debt(3,079)(4,521)Proceeds from sale of interest in consolidated entities,net 8 400 Net cash used in financing activities(19,714)(20,201)Effect of exchange rate changes on cash and cash equivalents(125)43 Net increase(decrease)in cash an

57、d cash equivalents 445 (202)Cash and cash equivalents at beginning of period 24,048 23,466 Cash and cash equivalents at end of period$24,493$23,264 See accompanying notes.Table of ContentsAlphabet Inc.9Alphabet Inc.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Unaudited)Note 1.Summary of Significant Ac

58、counting Policies Nature of OperationsGoogle was incorporated in California in September 1998 and re-incorporated in the State of Delaware in August 2003.In 2015,we implemented a holding company reorganization,and as a result,Alphabet Inc.(Alphabet)became the successor issuer to Google.We generate r

59、evenues by delivering relevant,cost-effective online advertising;cloud-based solutions that provide enterprise customers of all sizes with infrastructure,platform services,and applications;sales of other products and services,such as fees received for subscription-based products,apps and in-app purc

60、hases,and devices.Basis of ConsolidationThe consolidated financial statements of Alphabet include the accounts of Alphabet and entities consolidated under the variable interest and voting models.Intercompany balances and transactions have been eliminated.Unaudited Interim Financial InformationThese

61、unaudited interim consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States(GAAP),and in our opinion,include all adjustments of a normal recurring nature necessary for fair financial statement presentation.Interim results ar

62、e not necessarily indicative of the results to be expected for the full year ending December 31,2025.We have made estimates and assumptions that affect the amounts reported and disclosed in the financial statements and the accompanying notes.Actual results could differ materially from these estimate

63、s.These consolidated financial statements and other information presented in this Form 10-Q should be read in conjunction with the consolidated financial statements and the related notes included in our Annual Report on Form 10-K for the fiscal year ended December 31,2024 filed with the SEC.Recently

64、 Issued Accounting Pronouncements Not Yet AdoptedIn December 2023,the Financial Accounting Standards Board(FASB)issued Accounting Standards Update(ASU)2023-09 Income Taxes(Topics 740):Improvements to Income Tax Disclosures to expand the disclosure requirements for income taxes.Upon adoption we will

65、be required to disclose additional specified categories in the rate reconciliation in both percentage and dollar amounts.We will also be required to disclose the amount of income taxes paid disaggregated by jurisdiction,among other disclosure requirements.The standard is effective for our 2025 annua

66、l period and can be applied either prospectively or retrospectively.We are currently assessing the effect that the updated standard will have on our financial statement disclosures.In November 2024,the FASB issued ASU 2024-03 Income Statement:Reporting Comprehensive Income-Expense Disaggregation Dis

67、closures(Subtopic 220-40)to improve the disclosures about an entitys expenses.Upon adoption,we will be required to disclose in the notes to the financial statements a disaggregation of certain expense categories included within the expense captions on the face of the income statement.The standard is

68、 effective for our 2027 annual period,and our interim periods beginning in 2028,with early adoption permitted.The standard can be applied either prospectively or retrospectively.We are currently assessing adoption timing and the effect that the updated standard will have on our financial statement d

69、isclosures.Prior Period ReclassificationsCertain amounts in prior periods have been reclassified to conform with current period presentation.Table of ContentsAlphabet Inc.10Note 2.Revenues Disaggregated RevenuesThe following table presents revenues disaggregated by type(in millions):Three Months End

70、edMarch 31,20242025Google Search&other$46,156$50,702 YouTube ads 8,090 8,927 Google Network 7,413 7,256 Google advertising 61,659 66,885 Google subscriptions,platforms,and devices 8,739 10,379 Google Services total 70,398 77,264 Google Cloud 9,574 12,260 Other Bets 495 450 Hedging gains(losses)72 26

71、0 Total revenues$80,539$90,234 The following table presents revenues disaggregated by geography,based on the addresses of our customers(in millions):Three Months EndedMarch 31,20242025United States$38,737 48%$43,964 49%EMEA(1)23,788 30 25,923 29 APAC(1)13,289 16 14,854 16 Other Americas(1)4,653 6 5,

72、233 6 Hedging gains(losses)72 0 260 0 Total revenues$80,539 100%$90,234 100%(1)Regions represent Europe,the Middle East,and Africa(EMEA);Asia-Pacific(APAC);and Canada and Latin America(Other Americas).Revenue BacklogAs of March 31,2025,we had$92.4 billion of remaining performance obligations(“revenu

73、e backlog”),primarily related to Google Cloud.Revenue backlog represents commitments in customer contracts for future services that have not yet been recognized as revenue.We expect to recognize approximately 55%of the revenue backlog as revenues over the next 24 months with the remainder to be reco

74、gnized thereafter.The estimated revenue backlog and timing of revenue recognition for these commitments is largely driven by our ability to deliver in accordance with relevant contract terms and when our customers utilize services.Revenue backlog includes related deferred revenue currently recorded

75、as well as amounts that will be invoiced in future periods,and excludes contracts with an original expected term of one year or less and cancellable contracts.Deferred RevenuesWe record deferred revenues when cash payments are received or due in advance of our performance,including amounts which are

76、 refundable.Deferred revenues primarily relate to Google Cloud and Google subscriptions,platforms,and devices.Total deferred revenue as of December 31,2024 was$6.0 billion,of which$2.6 billion was recognized as revenues for the three months ended March 31,2025.Total deferred revenue as of March 31,2

77、025 was$6.6 billion.Note 3.Financial InstrumentsFair Value MeasurementsInvestments Measured at Fair Value on a Recurring BasisCash,cash equivalents,and marketable equity securities are measured at fair value and classified within Table of ContentsAlphabet Inc.11Level 1 and Level 2 in the fair value

78、hierarchy,because we use quoted prices for identical assets in active markets or inputs that are based upon quoted prices for similar instruments in active markets.Debt securities are measured at fair value and classified within Level 2 in the fair value hierarchy,because we use quoted market prices

79、 to the extent available or alternative pricing sources and models utilizing market observable inputs to determine fair value.For certain marketable debt securities,we have elected the fair value option for which changes in fair value are recorded in OI&E.The fair value option was elected for these

80、securities to align with the unrealized gains and losses from related derivative contracts.The following tables summarize our cash,cash equivalents,and marketable securities measured at fair value on a recurring basis(in millions):As of December 31,2024Fair Value HierarchyAdjusted CostGross Unrealiz

81、ed GainsGross Unrealized LossesFair ValueCash and Cash EquivalentsMarketable SecuritiesFair value changes recorded in other comprehensive incomeTime depositsLevel 2$2,217$0$0$2,217$2,081$136 Government bondsLevel 227,551 83 (214)27,420 50 27,370 Corporate debt securitiesLevel 218,300 79 (222)18,157

82、0 18,157 Mortgage-backed and asset-backed securitiesLevel 214,437 63 (385)14,115 0 14,115 Total investments with fair value change reflected in other comprehensive income(1)62,505 225 (821)61,909 2,131 59,778 Fair value adjustments recorded in net incomeMoney market fundsLevel 1 8,154 8,154 0 Curren

83、t marketable equity securities(2)Level 1 4,708 0 4,708 Mutual fundsLevel 2 105 0 105 Government bondsLevel 2 2,035 696 1,339 Corporate debt securitiesLevel 2 3,037 78 2,959 Mortgage-backed and asset-backed securitiesLevel 2 3,302 0 3,302 Total investments with fair value change recorded in net incom

84、e 21,341 8,928 12,413 Cash 0 12,407 0 Total$62,505$225$(821)$83,250$23,466$72,191(1)Represents gross unrealized gains and losses for debt securities recorded to accumulated other comprehensive income(AOCI).(2)The long-term portion of marketable equity securities(subject to long-term lock-up restrict

85、ions)of$266 million as of December 31,2024 is included within other non-current assets.Table of ContentsAlphabet Inc.12As of March 31,2025Fair Value HierarchyAdjusted CostGross Unrealized GainsGross Unrealized LossesFair ValueCash and Cash EquivalentsMarketable SecuritiesFair value changes recorded

86、in other comprehensive incomeTime depositsLevel 2$2,618$0$0$2,618$2,618$0 Government bondsLevel 2 28,459 329 (64)28,724 1,403 27,321 Corporate debt securitiesLevel 2 18,133 138 (131)18,140 0 18,140 Mortgage-backed and asset-backed securitiesLevel 2 14,072 103 (241)13,934 0 13,934 Total investments w

87、ith fair value change reflected in other comprehensive income(1)63,282 570 (436)63,416 4,021 59,395 Fair value adjustments recorded in net incomeMoney market fundsLevel 1 8,662 8,662 0 Current marketable equity securities(2)Level 1 4,744 0 4,744 Mutual fundsLevel 254 0 54Government bondsLevel 21,975

88、 576 1,399Corporate debt securitiesLevel 22,993 60 2,933Mortgage-backed and asset-backed securitiesLevel 23,539 0 3,539Total investments with fair value change recorded in net income 21,967 9,298 12,669 Cash 0 9,945 0 Total$63,282$570$(436)$85,383$23,264$72,064(1)Represents gross unrealized gains an

89、d losses for debt securities recorded to AOCI.(2)The long-term portion of marketable equity securities(subject to long-term lock-up restrictions)of$376 million as of March 31,2025 is included within other non-current assets.Investments Measured at Fair Value on a Nonrecurring Basis Our non-marketabl

90、e equity securities are investments in privately held companies without readily determinable market values.The carrying value of our non-marketable equity securities is adjusted to fair value upon observable transactions for identical or similar investments of the same issuer or impairment.Non-marke

91、table equity securities that have been remeasured during the period based on observable transactions are classified within Level 2 or Level 3 in the fair value hierarchy.Non-marketable equity securities that have been remeasured due to impairment are classified within Level 3.Our valuation methods i

92、nclude option pricing models,market comparable approach,and common stock equivalent method,which may include a combination of the observable transaction price at the transaction date and other unobservable inputs including volatility,expected time to exit,risk free rate,and the rights,and obligation

93、s of the securities we hold.These inputs vary significantly based on investment type.As of March 31,2025,the carrying value of our non-marketable equity securities was$48.6 billion,of which$25.0 billion were remeasured at fair value during the three months ended March 31,2025 and were primarily clas

94、sified within Level 2 of the fair value hierarchy at the time of measurement.Table of ContentsAlphabet Inc.13Debt SecuritiesThe following table summarizes the estimated fair value of investments in available-for-sale marketable debt securities by effective contractual maturity dates(in millions):As

95、ofMarch 31,2025Due in 1 year or less$5,151 Due in 1 year through 5 years 37,361 Due in 5 years through 10 years 11,803 Due after 10 years 12,951 Total$67,266 The following tables present fair values and gross unrealized losses recorded to AOCI,aggregated by investment category and the length of time

96、 that individual securities have been in a continuous loss position(in millions):As of December 31,2024 Less than 12 Months12 Months or GreaterTotal Fair ValueUnrealizedLossFair ValueUnrealizedLossFair ValueUnrealizedLossGovernment bonds$11,119$(126)$2,576$(88)$13,695$(214)Corporate debt securities

97、4,228 (17)6,838 (168)11,066 (185)Mortgage-backed and asset-backed securities 5,222 (106)3,813 (279)9,035 (385)Total$20,569$(249)$13,227$(535)$33,796$(784)As of March 31,2025 Less than 12 Months12 Months or GreaterTotal Fair ValueUnrealizedLossFair ValueUnrealizedLossFair ValueUnrealizedLossGovernmen

98、t bonds$3,361$(28)$1,486$(36)$4,847$(64)Corporate debt securities 2,158 (1)5,301 (106)7,459 (107)Mortgage-backed and asset-backed securities 3,155 (46)3,123 (195)6,278 (241)Total$8,674$(75)$9,910$(337)$18,584$(412)We determine realized gains or losses on the sale or extinguishment of debt securities

99、 on a specific identification method.The following table summarizes gains and losses for debt securities,reflected as a component of OI&E(in millions):Three Months EndedMarch 31,20242025Unrealized gain(loss)on fair value option debt securities$(46)$97 Gross realized gain on debt securities 68 266 Gr

100、oss realized loss on debt securities(480)(175)(Increase)decrease in allowance for credit losses(4)14 Total gain(loss)on debt securities recognized in other income(expense),net$(462)$202 Table of ContentsAlphabet Inc.14Equity InvestmentsThe carrying value of equity securities is measured as the total

101、 initial cost plus the cumulative net gain(loss).Gains and losses,including impairments,are included as a component of OI&E in the Consolidated Statements of Income.See Note 7 for further details on OI&E.Certain of our non-marketable equity securities include our investments in variable interest ent

102、ities(VIE)where we are not the primary beneficiary.See Note 5 for further details on VIE.The carrying values for marketable and non-marketable equity securities are summarized below(in millions):As of December 31,2024As of March 31,2025Marketable Equity SecuritiesNon-Marketable Equity SecuritiesTota

103、lMarketable Equity SecuritiesNon-Marketable Equity SecuritiesTotalTotal initial cost$4,767$21,240$26,007$4,640$24,926$29,566 Cumulative net gain(loss)(1)312 14,291 14,603 534 23,703 24,237 Carrying value$5,079$35,531$40,610$5,174$48,629$53,803(1)Non-marketable equity securities cumulative net gain(l

104、oss)is comprised of$22.7 billion and$32.3 billion of gains and$8.4 billion and$8.6 billion of losses(including impairments)as of December 31,2024 and March 31,2025,respectively.Gains and Losses on Marketable and Non-marketable Equity SecuritiesGains and losses(including impairments),net,for marketab

105、le and non-marketable equity securities included in OI&E are summarized below(in millions):Three Months EndedMarch 31,20242025Realized net gain(loss)on equity securities sold during the period$95$215 Unrealized net gain(loss)on marketable equity securities 164 227 Unrealized net gain(loss)on non-mar

106、ketable equity securities(1)1,984 9,316 Total gain(loss)on equity securities in other income(expense),net$2,243$9,758(1)Unrealized gain(loss)on non-marketable equity securities accounted for under the measurement alternative is comprised of$2.8 billion and$9.7 billion of upward adjustments and$814 m

107、illion and$399 million of downward adjustments(including impairments)for the three months ended March 31,2024 and 2025,respectively.In the table above,realized net gain(loss)on equity securities sold during the period reflects the difference between the sale proceeds and the carrying value of the eq

108、uity securities at the beginning of the period or the purchase date,if later.Cumulative net gains(losses)on equity securities sold during the period,which is summarized in the following table(in millions),represents the total net gains(losses)recognized after the initial purchase date of the equity

109、security sold during the period.While these net gains(losses)may have been reflected in periods prior to the period of sale,we believe they are important supplemental information as they reflect the economic net gains(losses)on the securities sold during the period.Cumulative net gains(losses)are ca

110、lculated as the difference between the sale price and the initial purchase price for the equity security sold during the period.Three Months Ended March 31,2025 20242025Total sale price$1,090$753 Total initial cost 661 592 Cumulative net gains(losses)$429$161 Equity Securities Accounted for Under th

111、e Equity MethodAs of December 31,2024 and March 31,2025,equity securities accounted for under the equity method had a carrying value of approximately$2.0 billion in each period.Our share of gains and losses,including impairments,are included as a component of OI&E,in the Consolidated Statements of I

112、ncome.See Note 7 for further details on OI&E.Certain of our equity method securities include our investments in VIEs where we are not the primary beneficiary.See Note 5 for further details on VIEs.Table of ContentsAlphabet Inc.15Convertible NotesAs of December 31,2024 and March 31,2025,we had invest

113、ments in convertible notes of$2.9 billion and$423 million,respectively.During the three months ended March 31,2025,we converted$3.0 billion of our convertible notes into equity securities,which included gains from conversion of$416 million.These gains were recognized in OI&E within the Consolidated

114、Statement of Income.See Note 7 for further details on OI&E.Derivative Financial InstrumentsWe use derivative instruments to manage risks relating to our ongoing business operations.The primary risk managed is foreign exchange risk.We use foreign currency contracts to reduce the risk that our cash fl

115、ows,earnings,and investment in foreign subsidiaries will be adversely affected by foreign currency exchange rate fluctuations.We also enter into derivative instruments to partially offset our exposure to other risks and enhance investment returns.We recognize derivative instruments in the Consolidat

116、ed Balance Sheets at fair value and classify the derivatives primarily within Level 2 in the fair value hierarchy.We present our collar contracts(an option strategy comprised of a combination of purchased and written options)at net fair values and present all other derivatives at gross fair values.T

117、he accounting treatment for derivatives is based on the intended use and hedge designation.Cash Flow HedgesWe designate foreign currency forward and option contracts(including collars)as cash flow hedges to hedge certain forecasted revenue transactions denominated in currencies other than the United

118、 States(U.S.)dollar.These contracts have maturities of 24 months or less.Cash flow hedge amounts included in the assessment of hedge effectiveness are deferred in AOCI and subsequently reclassified to revenue when the hedged item is recognized in earnings.We exclude forward points and time value fro

119、m our assessment of hedge effectiveness and amortize them on a straight-line basis over the life of the hedging instrument in revenues.The difference between fair value changes of the excluded component and the amount amortized to revenues is recorded in AOCI.As of March 31,2025,the net accumulated

120、gain on our foreign currency cash flow hedges before tax effect was$151 million,which is expected to be reclassified from AOCI into revenues within the next 12 months.Fair Value HedgesWe designate foreign currency forward contracts as fair value hedges to hedge foreign currency risks for our marketa

121、ble securities denominated in currencies other than the U.S.dollar.Fair value hedge amounts included in the assessment of hedge effectiveness are recognized in OI&E,along with the offsetting gains and losses of the related hedged items.We exclude forward points from the assessment of hedge effective

122、ness and recognize changes in the excluded component in OI&E.Net Investment HedgesWe designate foreign currency forward contracts as net investment hedges to hedge the foreign currency risks related to our investment in foreign subsidiaries.Net investment hedge amounts included in the assessment of

123、hedge effectiveness are recognized in AOCI along with the foreign currency translation adjustment.We exclude forward points from the assessment of hedge effectiveness and recognize changes in the excluded component in OI&E.Other DerivativesWe enter into foreign currency forward and option contracts

124、that are not designated as hedging instruments to hedge intercompany transactions and other monetary assets or liabilities denominated in currencies other than the functional currency of a subsidiary.Gains and losses on these derivatives that are not designated as accounting hedges are primarily rec

125、orded in OI&E along with the foreign currency gains and losses on monetary assets and liabilities.We also use derivatives not designated as hedging instruments to manage risks relating to interest rates,commodity prices,and credit exposures,and to enhance investment returns.From time to time,we ente

126、r into derivatives to hedge the market price risk on certain of our marketable equity securities.Gains and losses arising from other derivatives are primarily reflected within the“other”component of OI&E.See Note 7 for further details.Table of ContentsAlphabet Inc.16The gross notional amounts of out

127、standing derivative instruments were as follows(in millions):As of December 31,2024As ofMarch 31,2025Derivatives designated as hedging instruments:Foreign exchange contractsCash flow hedges$20,315$20,624 Fair value hedges$1,562$0 Net investment hedges$6,986$6,695 Derivatives not designated as hedgin

128、g instruments:Foreign exchange contracts$44,227$40,612 Other contracts$15,082$12,549 The fair values of outstanding derivative instruments were as follows(in millions):As of December 31,2024As of March 31,2025 Assets(1)Liabilities(2)Assets(1)Liabilities(2)Derivatives designated as hedging instrument

129、s:Foreign exchange contracts$1,054$0$236$370 Derivatives not designated as hedging instruments:Foreign exchange contracts200593320110Other contracts474191429Total derivatives not designated as hedging instruments 674 612 462 119 Total$1,728$612$698$489(1)Derivative assets are recorded as other curre

130、nt and non-current assets in the Consolidated Balance Sheets.(2)Derivative liabilities are recorded as accrued expenses and other liabilities,current and non-current in the Consolidated Balance Sheets.The gains(losses)on derivatives in cash flow hedging and net investment hedging relationships recog

131、nized in other comprehensive income(OCI)are summarized below(in millions):Three Months Ended March 31,20242025Derivatives in cash flow hedging relationship:Foreign exchange contractsAmount included in the assessment of effectiveness$155$(339)Amount excluded from the assessment of effectiveness 58 (6

132、1)Derivatives in net investment hedging relationship:Foreign exchange contractsAmount included in the assessment of effectiveness 82 (206)Total$295$(606)17 The table below presents the gains(losses)of derivatives included in the Consolidated Statements of Income:(in millions):Three Months Ended Marc

133、h 31,20242025RevenuesOther income(expense),netRevenuesOther income(expense),netTotal amounts included in the Consolidated Statements of Income$80,539$2,843$90,234$11,183 Effect of cash flow hedges:Foreign exchange contractsAmount reclassified from AOCI to income$74$0$242$0 Amount excluded from the a

134、ssessment of effectiveness(amortized)(2)0 18 0 Effect of fair value hedges:Foreign exchange contractsHedged items 0 (16)0 (9)Derivatives designated as hedging instruments 0 15 0 9 Amount excluded from the assessment of effectiveness 0 3 0 1 Effect of net investment hedges:Foreign exchange contractsA

135、mount excluded from the assessment of effectiveness 0 36 0 31 Effect of non designated hedges:Foreign exchange contracts 0 21 0 65 Other contracts 0 76 0 (71)Total gains(losses)$72$135$260$26 Offsetting of DerivativesWe enter into master netting arrangements and collateral security arrangements to r

136、educe credit risk.Cash collateral received related to derivative instruments under our collateral security arrangements are included in other current assets with a corresponding liability.Cash and non-cash collateral pledged related to derivative instruments under our collateral security arrangement

137、s are included in other current assets.The gross amounts of derivative instruments subject to master netting arrangements with various counterparties,and cash and non-cash collateral received and pledged under such agreements were as follows(in millions):As of December 31,2024Gross Amounts Not Offse

138、t in the Consolidated Balance Sheets,but Have Legal Rights to OffsetGross Amounts RecognizedGross Amounts Offset in the Consolidated Balance SheetsNet Amounts Presented in the Consolidated Balance SheetsFinancial Instruments(1)Cash and Non-Cash Collateral Received or PledgedNet AmountsDerivatives as

139、sets$1,776$(48)$1,728$(516)$(721)$491 Derivatives liabilities$660$(48)$612$(516)$(9)$87 18As of March 31,2025Gross Amounts Not Offset in the Consolidated Balance Sheets,but Have Legal Rights to OffsetGross Amounts RecognizedGross Amounts Offset in the Consolidated Balance SheetsNet Amounts Presented

140、 in the Consolidated Balance SheetsFinancial Instruments(1)Cash and Non-Cash Collateral Received or PledgedNet AmountsDerivatives assets$798$(100)$698$(301)$(242)$155 Derivatives liabilities$589$(100)$489$(301)$(3)$185(1)The balances as of December 31,2024 and March 31,2025 were related to derivativ

141、es allowed to be net settled in accordance with our master netting agreements.Note 4.LeasesWe have entered into operating and finance lease agreements primarily for data centers,land,and offices throughout the world with varying lease terms.Components of lease costs were as follows(in millions):Thre

142、e Months EndedMarch 31,20242025Operating lease cost$804$790 Finance lease cost:Amortization of lease assets 83 96 Interest on lease liabilities 7 15 Finance lease cost 90 111 Variable lease cost 343 360 Total lease cost$1,237$1,261 Supplemental balance sheet information related to leases was as foll

143、ows(in millions):As of December 31,2024As ofMarch 31,2025Weighted average remaining lease termOperating leases7.8 years7.9 yearsFinance leases10.4 years10.2 yearsWeighted average discount rateOperating leases 3.4%3.5%Finance leases 2.8%3.3%19As of December 31,2024As ofMarch 31,2025Operating leases:O

144、perating lease assets$13,588$13,722 Accrued expenses and other liabilities$2,887$2,873 Operating lease liabilities 11,691 11,678 Total operating lease liabilities$14,578$14,551 Finance Leases:Property and equipment,at cost$4,622$5,219 Accumulated depreciation(2,037)(2,125)Property and equipment,net$

145、2,585$3,094 Accrued expenses and other liabilities$235$100 Other long-term liabilities 1,442 1,961 Total finance lease liabilities$1,677$2,061 Supplemental cash flow information related to leases was as follows(in millions):Three Months EndedMarch 31,20242025Cash payments for lease liabilities:Opera

146、ting cash flows used for operating leases$842$878 Operating cash flows used for finance leases$7$15 Financing cash flows used for finance leases(1)$90$192 Assets obtained in exchange for lease liabilities:Operating leases$404$697 Finance leases$19$523(1)Financing cash flows used for financing leases

147、 are included within financing activities of the Consolidated Statements of Cash Flows as repayments of debt.Future lease payments as of March 31,2025 were as follows(in millions):Operating LeasesFinance LeasesRemainder of 2025$2,377$224 2026 2,947 268 2027 2,425 270 2028 1,938 258 2029 1,536 232 Th

148、ereafter 5,741 1,254 Total future lease payments 16,964 2,506 Less imputed interest(2,413)(445)Total lease liability balance$14,551$2,061 As of March 31,2025,we have entered into leases primarily related to data centers that have not yet commenced with future lease payments of$17.3 billion,that are

149、not yet recorded on our Consolidated Balance Sheets.These leases will commence between 2025 and 2031 with non-cancelable lease terms between one and 25 years.20Note 5.Variable Interest EntitiesConsolidated VIEsWe consolidate VIEs in which we hold a variable interest and are the primary beneficiary.T

150、he results of operations and financial position of these VIEs are included in our consolidated financial statements.For certain consolidated VIEs,their assets are not available to us,and their creditors do not have recourse to us.As of December 31,2024 and March 31,2025,assets that can only be used

151、to settle obligations of these VIEs were$8.7 billion and$7.8 billion,respectively,and are primarily included in cash and cash equivalents on our Consolidated Balance Sheets.As of December 31,2024 and March 31,2025,liabilities for which creditors only have recourse to the VIEs were$2.3 billion and$2.

152、0 billion,respectively.We may continue to fund ongoing operations of certain VIEs that are included within Other Bets.As of December 31,2024 and March 31,2025,total noncontrolling interests(NCI)in our consolidated subsidiaries were$4.2 billion and$4.4 billion,respectively,of which$1.1 billion was re

153、deemable noncontrolling interests(RNCI)in each period.NCI and RNCI are included within additional paid-in capital.Net loss attributable to noncontrolling interests was not material for any period presented and is included within the other component of OI&E.See Note 7 for further details on OI&E.Unco

154、nsolidated VIEsWe have investments in VIEs in which we are not the primary beneficiary.These VIEs include private companies that are primarily early stage companies and certain renewable energy entities in which activities involve power generation using renewable sources.We have determined that the

155、governance structures of these entities do not allow us to direct the activities that would significantly affect their economic performance.Therefore,we are not the primary beneficiary,and the results of operations and financial position of these VIEs are not included in our consolidated financial s

156、tatements.We account for these investments primarily as non-marketable equity securities or equity method investments,which are included within non-marketable securities on our Consolidated Balance Sheets.The maximum exposure of these unconsolidated VIEs is generally based on the current carrying va

157、lue of the investments and any future funding commitments.As of December 31,2024 and March 31,2025,our future funding commitments related to unconsolidated VIE investments were$1.5 billion in each period.Note 6.DebtShort-Term DebtWe have a short-term debt financing program of up to$10.0 billion thro

158、ugh the issuance of commercial paper.Net proceeds from this program are used for general corporate purposes.We had$2.3 billion and$2.5 billion of commercial paper outstanding as of December 31,2024 and March 31,2025,respectively,with a weighted-average effective interest rate of 4.4%in each period.T

159、he estimated fair value of the commercial paper approximated its carrying value as of March 31,2025.Our short-term debt balance also includes the current portion of certain long-term debt.21Long-Term Debt Total outstanding long-term debt is summarized below(in millions,except percentages):MaturityCo

160、upon RateEffective Interest RateAs of December 31,2024As ofMarch 31,2025Debt2016 Notes issuance20262.00%2.23%$2,000$2,000 2020 Notes issuance2025-20600.45%-2.25%0.57%-2.33%10,000 10,000 Total face value of long-term debt 12,000 12,000 Unamortized discount and debt issuance costs(118)(114)Less:Curren

161、t portion of long-term notes(1)(999)(1,000)Total long-term debt$10,883$10,886(1)Total current portion of long-term debt is included within accrued expenses and other current liabilities.See Note 7 for further details.The notes in the table above are fixed-rate senior unsecured obligations and rank e

162、qually with each other.We may redeem the notes at any time in whole or in part at specified redemption prices.The effective interest rates are based on proceeds received with interest payable semi-annually.The total estimated fair value of the outstanding notes was approximately$9.0 billion and$9.1

163、billion as of December 31,2024 and March 31,2025,respectively.The fair value was determined based on observable market prices of identical instruments in less active markets and is categorized accordingly as Level 2 in the fair value hierarchy.Credit FacilityAs of March 31,2025,we had$10.0 billion o

164、f revolving credit facilities,of which$4.0 billion expires in April 2025 and$6.0 billion expires in April 2028.In April 2025,we entered into a new$4.0 billion revolving credit facility expiring in April 2026.Additionally,in April 2025 we terminated the$6.0 billion revolving credit facility expiring

165、in April 2028 and entered into a new$6.0 billion revolving credit facility expiring in April 2030.The interest rates for all credit facilities are determined based on a formula using certain market rates.No amounts were outstanding under the credit facilities as of December 31,2024 and March 31,2025

166、.Note 7.Supplemental Financial Statement Information Accounts ReceivableThe allowance for credit losses on accounts receivable was$879 million and$915 million as of December 31,2024 and March 31,2025,respectively.Property and Equipment,NetProperty and equipment,net,consisted of the following(in mill

167、ions):As of December 31,2024As ofMarch 31,2025Technical infrastructure(1)$139,596$150,992 Office space 43,714 44,871 Corporate and other assets 16,519 17,336 Property and equipment,in service 199,829 213,199 Less:accumulated depreciation(79,390)(83,778)Add:assets not yet in service 50,597 55,641 Pro

168、perty and equipment,net$171,036$185,062(1)As of December 31,2024 and March 31,2025,approximately 60%of technical infrastructure assets were comprised of servers and network equipment.The remaining balance was comprised of data center land and buildings and related assets.22Accrued Expenses and Other

169、 Current LiabilitiesAccrued expenses and other current liabilities consisted of the following(in millions):As of December 31,2024As ofMarch 31,2025Accrued purchases of property and equipment(1)$7,104$7,552 European Commission fines(2)6,322 6,534 Accrued customer liabilities 4,304 4,163 Payables to b

170、rokers for unsettled investment trades 3,866 4,889 Income taxes payable,net 2,905 9,160 Other accrued expenses and current liabilities 26,727 26,002 Accrued expenses and other current liabilities$51,228$58,300(1)Additional property and equipment purchases of$3.2 billion and$3.8 billion as of Decembe

171、r 31,2024 and March 31,2025,respectively,were included in accounts payable.(2)The amounts related to the European Commission(EC)fines,including any under appeal,are included in accrued expenses and other current liabilities on our Consolidated Balance Sheets.Amounts include the effects of foreign ex

172、change and interest.See Note 10 for further details.Accumulated Other Comprehensive Income(Loss)Components of AOCI,net of income tax,were as follows(in millions):Foreign Currency Translation AdjustmentsUnrealized Gains(Losses)on Available-for-Sale InvestmentsUnrealized Gains(Losses)on Cash Flow Hedg

173、esTotalBalance as of December 31,2023$(3,407)$(965)$(30)$(4,402)Other comprehensive income(loss)before reclassifications(503)(360)128 (735)Amounts excluded from the assessment of hedge effectiveness recorded in AOCI 0 0 58 58 Amounts reclassified from AOCI 0 311 (71)240 Other comprehensive income(lo

174、ss)(503)(49)115 (437)Balance as of March 31,2024$(3,910)$(1,014)$85$(4,839)Foreign Currency Translation AdjustmentsUnrealized Gains(Losses)on Available-for-Sale InvestmentsUnrealized Gains(Losses)on Cash Flow HedgesTotalBalance as of December 31,2024$(5,080)$(299)$579$(4,800)Other comprehensive inco

175、me(loss)before reclassifications 663 645 (252)1,056 Amounts excluded from the assessment of hedge effectiveness recorded in AOCI 0 0 (61)(61)Amounts reclassified from AOCI 0 (84)(197)(281)Other comprehensive income(loss)663 561 (510)714 Balance as of March 31,2025$(4,417)$262$69$(4,086)23The effects

176、 on net income of amounts reclassified from AOCI were as follows(in millions):Three Months Ended March 31,AOCI ComponentsLocation20242025Unrealized gains(losses)on available-for-sale investmentsOther income(expense),net$(399)$104 Benefit(provision)for income taxes 88 (20)Net of income tax(311)84 Unr

177、ealized gains(losses)on cash flow hedgesForeign exchange contractsRevenue 74 242 Interest rate contractsOther income(expense),net 1 0 Benefit(provision)for income taxes(4)(45)Net of income tax 71 197 Total amount reclassified,net of income tax$(240)$281 Other Income(Expense),NetComponents of OI&E we

178、re as follows(in millions):Three Months EndedMarch 31,20242025Interest income$1,061$1,001 Interest expense(1)(94)(34)Foreign currency exchange gain(loss),net(238)(106)Gain(loss)on debt securities,net(462)202 Gain(loss)on equity securities,net 2,243 9,758 Performance fees 104 (40)Income(loss)and impa

179、irment from equity method investments,net(26)(22)Other 255 424 Other income(expense),net$2,843$11,183(1)Interest expense is net of interest capitalized of$43 million and$79 million for the three months ended March 31,2024 and 2025,respectively.Note 8.AcquisitionsPending AcquisitionIn March 2025,we e

180、ntered into a definitive agreement to acquire Wiz,a leading cloud security platform,for$32.0 billion,subject to closing adjustments,in an all-cash transaction.The acquisition of Wiz is expected to close in 2026,subject to customary closing conditions,including the receipt of regulatory approvals.Upo

181、n the close of the acquisition,Wiz will be part of the Google Cloud segment.Note 9.GoodwillChanges in the carrying amount of goodwill for the three months ended March 31,2025 were as follows(in millions):Google ServicesGoogle CloudOther BetsTotalBalance as of December 31,2024$23,521$7,490$874$31,885

182、 Additions 289 0 0 289 Foreign currency translation and other adjustments(2)0 1 (1)Balance as of March 31,2025$23,808$7,490$875$32,173 24Note 10.Commitments and ContingenciesCommitmentsWe have content licensing agreements with future fixed or minimum guaranteed commitments of$8.6 billion as of March

183、 31,2025,of which the majority is paid quarterly through the first quarter of 2030.IndemnificationsIn the normal course of business,including to facilitate transactions in our services and products and corporate activities,we indemnify certain parties,including advertisers,Google Network partners,di

184、stribution partners,customers of Google Cloud offerings,lessors,and service providers with respect to certain matters.We have agreed to defend and/or indemnify certain parties against losses arising from a breach of representations or covenants,or out of intellectual property infringement or other c

185、laims made against certain parties.Several of these agreements limit the time within which an indemnification claim can be made and the amount of the claim.In addition,we have entered into indemnification agreements with our officers and directors,and our bylaws contain similar indemnification oblig

186、ations to our agents.It is not possible to make a reasonable estimate of the maximum potential amount under these indemnification agreements due to the unique facts and circumstances involved in each particular agreement.Additionally,the payments we have made under such agreements have not had a mat

187、erial adverse effect on our results of operations,cash flows,or financial position.However,to the extent that valid indemnification claims arise in the future,future payments by us could be significant and could have a material adverse effect on our results of operations or cash flows in a particula

188、r period.As of March 31,2025,we did not have any material indemnification claims that were probable or reasonably possible.Legal MattersWe record a liability when we believe that it is probable that a loss has been incurred,and the amount can be reasonably estimated.If we determine that a loss is re

189、asonably possible and the loss or range of loss can be estimated,we disclose the reasonably possible loss.We evaluate developments in our legal matters that could affect the amount of liability that has been previously accrued,and the matters and related reasonably possible losses disclosed,and make

190、 adjustments as appropriate.Certain outstanding matters seek speculative,substantial or indeterminate monetary amounts,substantial changes to our business practices and products,or structural remedies.Significant judgment is required to determine both the likelihood of there being a loss and the est

191、imated amount of a loss related to such matters,and we may be unable to estimate the reasonably possible loss or range of losses.The outcomes of outstanding legal matters are inherently unpredictable and subject to significant uncertainties,and could,either individually or in aggregate,have a materi

192、al adverse effect.We expense legal fees in the period in which they are incurred.Antitrust MattersWe are subject to formal and informal inquiries and investigations as well as litigation on various competition matters by regulatory authorities and private parties in the U.S.,Europe,and other jurisdi

193、ctions globally,including the following:Shopping:In June 2017,the EC announced its decision that certain actions taken by Google relating to its display and ranking of shopping search results and ads infringed European antitrust laws and imposed a 2.4 billion fine.In 2024,we made a cash payment of$3

194、.0 billion for the fine.Android:In July 2018,the EC announced its decision that certain provisions in Googles Android-related distribution agreements infringed European antitrust laws,imposed a 4.3 billion fine,and directed the termination of the conduct at issue.We appealed the EC decision and impl

195、emented changes to certain of our Android distribution practices.In September 2022,the General Court affirmed the EC decision but reduced the fine from 4.3 billion to 4.1 billion.We subsequently appealed the General Courts affirmation of the EC decision with the European Court of Justice,which remai

196、ns pending.In 2018,we recognized a charge of$5.1 billion for the fine,which we reduced by$217 million in 2022.AdSense for Search:In March 2019,the EC announced its decision that certain provisions in Googles agreements with AdSense for Search partners infringed European antitrust laws,imposed a fine

197、 of 1.5 billion,and directed actions related to AdSense for Search partners agreements,which we implemented 25prior to the decision.In 2019,we recognized a charge of$1.7 billion for the fine and appealed the EC decision.In September 2024,the General Court overturned the EC decision and annulled the

198、1.5 billion fine.The EC has appealed the General Courts decision with the European Court of Justice.Search:In October 2020,the DOJ and a number of state Attorneys General filed a lawsuit in the U.S.District Court for the District of Columbia alleging that Google violated U.S.antitrust laws relating

199、to Search and Search advertising.In August 2024,the U.S.District Court for the District of Columbia ruled that Google violated such U.S.antitrust laws.A separate proceeding is being held to determine remedies,the range of which vary widely.The DOJ has proposed a high level remedy framework,which inc

200、ludes alterations to our products and services and our business models and operations,including structural remedies,and/or our distribution arrangements,among other changes,some of which could have a material adverse effect on our business.We have filed our own remedies proposal ahead of a hearing o

201、n remedies in April 2025.We expect a decision likely in the second half of 2025,after which we intend to appeal.Further,in June 2022,the Australian Competition and Consumer Commission and in October 2023,the Japanese Fair Trade Commission(JFTC)each opened an investigation into Search distribution pr

202、actices.In April 2025,the JFTC issued a cease-and-desist order requiring us to make changes to our Android agreements to ensure they are consistent with Japanese antitrust law.The JFTC did not impose monetary penalties.We are constructively engaging with JFTC regarding compliance with the order.Give

203、n the nature of these matters,we cannot estimate a possible loss.Advertising Technology:In December 2020,a number of state Attorneys General filed a lawsuit in the U.S.District Court for the Eastern District of Texas alleging that Google violated U.S.antitrust laws as well as state deceptive trade l

204、aws relating to its advertising technology,and a trial is scheduled for August 2025.Additionally,in January 2023,the DOJ,along with a number of state Attorneys General,filed a lawsuit in the U.S.District Court for the Eastern District of Virginia alleging that Google violated U.S.antitrust laws rela

205、ting to its advertising technology,and a number of additional state Attorneys General subsequently joined the lawsuit.In April 2025,the U.S.District Court for the Eastern District of Virginia issued a mixed decision in the DOJ case against Google,ruling that the DOJ failed to show that Googles adver

206、tiser tools or acquisitions of DoubleClick and AdMeld were anticompetitive,but that Googles publisher tools violated antitrust laws by excluding rivals.We plan to appeal the adverse portion of this decision.Further,in June 2023,the EC issued a Statement of Objections informing Google of its prelimin

207、ary view that Google violated European antitrust laws relating to its advertising technology,to which we responded.In September 2024,the UK also issued a Statement of Objections on similar grounds,to which we responded.Given the nature of these matters,we cannot estimate a possible loss.Google Play:

208、In July 2021,a number of state Attorneys General filed a lawsuit in the U.S.District Court for the Northern District of California alleging that Googles operation of Android and Google Play violated U.S.antitrust laws and state antitrust and consumer protection laws.In September 2023,we reached a se

209、ttlement in principle with 50 state Attorneys General and three territories and recognized a charge.Final approval of the settlement remains pending before the court.In May 2024,we funded the settlement amount to an escrow agent.In December 2023,a California jury delivered a verdict in Epic Games v.

210、Google finding that Google violated U.S.antitrust laws related to Google Plays business.Epic did not seek monetary damages.The presiding judge issued a remedies decision in October 2024,ordering a variety of alterations to our business models and operations and contractual agreements for Android and

211、 Google Play.We are appealing the verdict and the trial court judge temporarily paused the implementation of the remedies while the Court of Appeals considers our request to pause implementation of the remedies pending the duration of the appeal.Given the nature of this matter,we cannot estimate a p

212、ossible loss.European Digital Markets Act:In March 2024,the EC opened two investigations regarding Googles compliance with certain provisions of EUs Digital Markets Act relating to Google Play and Search.In March 2025,the EC issued preliminary findings of non-compliance in both investigations,to whi

213、ch we plan to respond in the coming weeks.Given the preliminary stages of this matter,we cannot estimate a possible loss.In addition to these antitrust proceedings,private individual and collective actions that overlap with claims pursued by regulatory authorities are pending in the U.S.and in sever

214、al other jurisdictions,including across Europe.Given the nature of these matters,we cannot estimate a possible loss.26We believe we have strong arguments against these open claims and will defend ourselves vigorously.We continue to cooperate with federal and state regulators in the U.S.,the EC,and o

215、ther regulators around the world.Privacy MattersWe are subject to a number of privacy-related laws and regulations,and we currently are party to a number of privacy investigations and lawsuits ongoing in multiple jurisdictions.For example,there are ongoing investigations and litigation in the U.S.an

216、d the EU,including those relating to our collection and use of location information,alleged violations of state biometric statutes,the choices we offer users,and advertising practices,which could result in significant fines,judgments,and product changes.Patent and Intellectual Property ClaimsWe have

217、 had patent,copyright,trade secret,and trademark infringement lawsuits filed against us claiming that certain of our products,services,and technologies infringe others intellectual property rights.Adverse results in these lawsuits may include awards of substantial monetary damages,costly royalty or

218、licensing agreements,or orders preventing us from offering certain features,functionalities,products,or services.As a result,we may have to change our business practices and develop non-infringing products or technologies,which could result in a loss of revenues for us and otherwise harm our busines

219、s.In addition,the U.S.International Trade Commission(ITC)has increasingly become an important forum to litigate intellectual property disputes because an ultimate loss in an ITC action can result in a prohibition on importing infringing products into the U.S.Because the U.S.is an important market,a

220、prohibition on importation could have an adverse effect on us,including preventing us from importing many important products into the U.S.or necessitating workarounds that may limit certain features of our products.Further,our customers and partners may discontinue the use of our products,services,a

221、nd technologies,as a result of injunctions or otherwise,which could result in loss of revenues and adversely affect our business.OtherWe are subject to claims,lawsuits,regulatory and government inquiries and investigations,other proceedings,and consent orders involving competition,intellectual prope

222、rty,data privacy and security,tax and related compliance,labor and employment,commercial disputes,content generated by our users,goods and services offered by advertisers or publishers using our platforms,personal injury,consumer protection,and other matters.For example,we periodically have data inc

223、idents that we report to relevant regulators as required by law.Such claims,consent orders,lawsuits,regulatory and government investigations,and other proceedings could result in substantial fines and penalties,injunctive relief,ongoing monitoring and auditing obligations,changes to our products and

224、 services,alterations to our business models and operations,and collateral related civil litigation or other adverse consequences,all of which could harm our business,reputation,financial condition,and operating results.We have ongoing legal matters relating to Russia.For example,some matters concer

225、n civil judgments that include compounding penalties imposed upon us in connection with disputes regarding the termination of accounts,including those of sanctioned parties.We do not expect these ongoing legal matters will have a material adverse effect.Non-Income TaxesWe are under audit by various

226、domestic and foreign tax authorities with regards to non-income tax matters.The subject matter of non-income tax audits primarily arises from disputes on the tax treatment and tax rate applied to the sale of our products and services in these jurisdictions and the tax treatment of certain employee b

227、enefits.We accrue non-income taxes that may result from examinations by,or any negotiated agreements with,these tax authorities when a loss is probable and reasonably estimable.If we determine that a loss is reasonably possible and the loss or range of loss can be estimated,we disclose the reasonabl

228、y possible loss.Due to the inherent complexity and uncertainty of these matters and judicial process in certain jurisdictions,the final outcome may be materially different from our expectations.See Note 14 for information regarding income tax contingencies.27Note 11.Stockholders Equity Share Repurch

229、asesIn the three months ended March 31,2025,we continued to repurchase both Class A and Class C shares in a manner deemed in the best interest of the company and its stockholders,taking into account the economic cost and prevailing market conditions,including the relative trading prices and volumes

230、of the Class A and Class C shares.During the three months ended March 31,2025,we repurchased$15.3 billion of Alphabets Class A and Class C shares.In April 2024,the Board of Directors of Alphabet authorized the company to repurchase up to$70.0 billion of its Class A and Class C shares.As of March 31,

231、2025,$29.5 billion remained available for Class A and Class C share repurchases.In April 2025,the Board of Directors of Alphabet authorized the company to repurchase up to an additional$70.0 billion of Class A and Class C shares.The following table presents Class A and Class C shares repurchased and

232、 subsequently retired(in millions):Three Months Ended March 31,2025SharesAmountClass A share repurchases 15$2,766 Class C share repurchases 68 12,535 Total share repurchases(1)83$15,301(1)Shares repurchased include unsettled repurchases.Repurchases are executed from time to time,subject to general b

233、usiness and market conditions and other investment opportunities,through open market purchases or privately negotiated transactions,including through Rule 10b5-1 plans.The repurchase program does not have an expiration date.DividendsIn the three months ended March 31,2025,total cash dividends were$1

234、.2 billion,$171 million,and$1.1 billion for Class A,Class B,and Class C shares,respectively.In April 2025,the Board of Directors of Alphabet declared a quarterly cash dividend of$0.21 representing a 5%increase from the previous quarterly dividend of$0.20.The dividend is payable on June 16,2025 to st

235、ockholders of record for each of the companys Class A,Class B,and Class C shares as of June 9,2025.The company intends to pay quarterly cash dividends in the future,subject to review and approval by the companys Board of Directors in its sole discretion.28Note 12.Net Income Per ShareThe following ta

236、ble sets forth the computation of basic and diluted net income per share of Class A,Class B,and Class C stock(in millions,except per share amounts):Three Months Ended March 31,20242025 Class AClass BClass CConsolidatedClass AClass BClass CConsolidatedBasic net income per share:NumeratorAllocation of

237、 distributed earnings(cash dividends paid)$0$0$0$0$1,167$171$1,096$2,434 Allocation of undistributed earnings 11,213 1,656 10,793 23,662 15,367 2,264 14,475 32,106 Net income$11,213$1,656$10,793$23,662$16,534$2,435$15,571$34,540 DenominatorNumber of shares used in per share computation 5,883 869 5,6

238、63 12,415 5,831 859 5,493 12,183 Basic net income per share$1.91$1.91$1.91$1.91$2.84$2.83$2.83$2.84 Diluted net income per share:NumeratorAllocation of total earnings for basic computation$11,213$1,656$10,793$23,662$16,534$2,435$15,571$34,540 Reallocation of total earnings as a result of conversion

239、of Class B to Class A shares 1,656 0 0 _(1)2,435 0 0 _(1)Reallocation of undistributed earnings(115)(15)115 _(1)(156)(20)156 _(1)Net income$12,754$1,641$10,908$23,662$18,813$2,415$15,727 34,540 DenominatorNumber of shares used in basic computation 5,883 869 5,663 12,415 5,831 859 5,493 12,183 Weight

240、ed-average effect of dilutive securitiesAdd:Conversion of Class B to Class A shares outstanding 869 0 0 _(1)859 0 0 _(1)Restricted stock units and other contingently issuable shares 0 0 112 112 0 0 108 108 Number of shares used in per share computation 6,752 869 5,775 12,527 6,690 859 5,601 12,291 D

241、iluted net income per share$1.89$1.89$1.89$1.89$2.81$2.81$2.81$2.81(1)Not applicable for consolidated net income per share.For the periods presented above,the holders of each class are entitled to equal per share dividends or distributions in liquidation in accordance with the Amended and Restated C

242、ertificate of Incorporation of Alphabet Inc.Holders of Alphabet unvested stock units are awarded dividend equivalents,which are subject to the same vesting conditions as the underlying award,and settled in Class C shares.Immaterial differences in net income per share across our Class A,Class B,and C

243、lass C shares may arise due to the allocation of distributed earnings,which is based on the holders as of the record date,compared with the allocation of undistributed earnings and number of shares,which is based on the weighted average shares outstanding over the periods.29Note 13.Compensation Plan

244、sStock-Based CompensationFor the three months ended March 31,2024 and 2025,total stock-based compensation(SBC)expense was$5.3 billion and$5.5 billion,including amounts associated with awards we expect to settle in Alphabet stock of$5.1 billion and$5.3 billion,respectively.Stock-Based Award Activitie

245、sThe following table summarizes the activities for unvested Alphabet restricted stock units(RSUs),which include dividend equivalents awarded to holders of unvested stock,for the three months ended March 31,2025(in millions,except per share amounts):Number ofShares Weighted-AverageGrant-DateFair Valu

246、eUnvested as of December 31,2024 299$122.77 Granted 135$176.15 Vested(44)$124.19 Forfeited/canceled(6)$127.79 Unvested as of March 31,2025 384$141.29 As of March 31,2025,there was$52.5 billion of unrecognized compensation cost related to unvested RSUs.This amount is expected to be recognized over a

247、weighted-average period of 2.9 years.Note 14.Income Taxes The following table presents provision for income taxes(in millions,except for effective tax rate):Three Months EndedMarch 31,20242025Income before provision for income taxes$28,315$41,789 Provision for income taxes$4,653$7,249 Effective tax

248、rate 16.4%17.3%We are subject to income taxes in the U.S.and foreign jurisdictions.Significant judgment is required in evaluating our uncertain tax positions and determining our provision for income taxes.The total amount of gross unrecognized tax benefits was$12.6 billion and$13.5 billion,of which$

249、10.0 billion and$10.8 billion,if recognized,would affect our effective tax rate,as of December 31,2024 and March 31,2025,respectively.Note 15.Information about Segments and Geographic Areas We report our segment results as Google Services,Google Cloud,and Other Bets:Google Services includes products

250、 and services such as ads,Android,Chrome,devices,Google Maps,Google Play,Search,and YouTube.Google Services generates revenues primarily from advertising;fees received for consumer subscription-based products such as YouTube TV,YouTube Music and Premium,and NFL Sunday Ticket,as well as Google One;th

251、e sale of apps and in-app purchases;and devices.Google Cloud includes infrastructure and platform services,applications,and other services for enterprise customers.Google Cloud generates revenues primarily from consumption-based fees and subscriptions received for Google Cloud Platform services,Goog

252、le Workspace communication and collaboration tools,and other enterprise services.Other Bets is a combination of multiple operating segments that are not individually material.Revenues from Other Bets are generated primarily from the sale of healthcare-related services and internet services.Revenues,

253、certain costs,such as costs associated with content and traffic acquisition,certain engineering activities,and devices,as well as certain operating expenses are directly attributable to our segments.Due to the integrated nature of Alphabet,other costs and expenses,such as technical infrastructure an

254、d office facilities,are managed centrally at a consolidated level.These costs,including the associated depreciation,are allocated to operating segments as a service cost generally based on usage,headcount,or revenue.30Certain costs are not allocated to our segments because they represent Alphabet-le

255、vel activities.These costs primarily include certain AI-focused shared R&D activities,including development costs of our general AI models;corporate initiatives such as our philanthropic activities;corporate shared costs such as certain finance,human resource,and legal costs,including certain fines

256、and settlements.Charges associated with employee severance and office space reductions are also not allocated to our segments.Additionally,hedging gains(losses)related to revenue are not allocated to our segments.Our Chief Operating Decision Maker(CODM)is our Chief Executive Officer,Sundar Pichai.Ou

257、r CODM uses segment operating income(loss)to allocate resources to our segments in our annual planning process and to assess the performance of our segments,primarily by monitoring actual results versus the annual plan.Our operating segments are not evaluated using asset information.The following ta

258、ble presents revenue,profitability,and expense information about our segments(in millions):Three Months EndedMarch 31,20242025Revenues:Google Services$70,398$77,264 Google Cloud 9,574 12,260 Other Bets 495 450 Hedging gains(losses)72 260 Total revenues$80,539$90,234 Operating income(loss):Google Ser

259、vices$27,897$32,682 Google Cloud 900 2,177 Other Bets(1,020)(1,226)Alphabet-level activities(2,305)(3,027)Total income from operations$25,472$30,606 Supplemental information about segment expenses:Google Services:Employee compensation expenses$11,511$11,337 Other costs and expenses 30,990 33,245 Tot

260、al Google Services costs and expenses$42,501$44,582 Google Cloud:Employee compensation expenses$5,157$5,412 Other costs and expenses 3,517 4,671 Total Google Cloud costs and expenses$8,674$10,083 Google Services and Google Cloud employee compensation expenses include the costs associated with direct

261、 and allocated employees.Google Services and Google Cloud other costs and expenses primarily include direct costs,such as advertising and promotional activities and third party services fees as well as allocated costs,such as technical infrastructure and office facilities usage costs.Additionally,Go

262、ogle Services other costs and expenses include content and traffic acquisition costs and device costs.See Note 2 for information relating to revenues by geography.The following table presents long-lived assets by geographic area,which includes property and equipment,net and operating lease assets(in

263、 millions):As of December 31,2024As ofMarch 31,2025Long-lived assets:United States$138,993$149,304 International 45,631 49,480 Total long-lived assets$184,624$198,784 31ITEM 2.MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSPlease read the following discussion and

264、 analysis of our financial condition and results of operations together with Note About Forward-Looking Statements and our consolidated financial statements and related notes included under Item 1 of this Quarterly Report on Form 10-Q as well as our Annual Report on Form 10-K for the fiscal year end

265、ed December 31,2024,including Part I,Item 1A Risk Factors.Understanding Alphabets Financial ResultsAlphabet is a collection of businesses the largest of which is Google.We report Google in two segments,Google Services and Google Cloud;we also report all non-Google businesses collectively as Other Be

266、ts.For further details on our segments,see Note 15 of the Notes to Consolidated Financial Statements included in Item 1 of this Quarterly Report on Form 10-Q.Revenues and Monetization Metrics We generate revenues by delivering relevant,cost-effective online advertising;cloud-based solutions that pro

267、vide enterprise customers of all sizes with infrastructure,platform services,and applications;sales of other products and services,such as fees received for subscription-based products,apps and in-app purchases,and devices.For additional information on how we recognize revenue,see Note 1 of the Note

268、s to Consolidated Financial Statements included in Part II,Item 8 in our Annual Report on Form 10-K for the fiscal year ended December 31,2024.In addition to the long-term trends and their financial effect on our business discussed in Trends in Our Business and Financial Effect in Part II,Item 7 of

269、our Annual Report on Form 10-K for the fiscal year ended December 31,2024,fluctuations in our revenues have been and may continue to be affected by a combination of factors,including:changes in foreign currency exchange rates;changes in pricing,such as those resulting from changes in fee structures,

270、discounts,and customer incentives;general economic conditions and various external dynamics,including geopolitical events,regulations,and other measures and their effect on advertiser,consumer,and enterprise spending;new product,service,and market launches;andseasonality.Additionally,fluctuations in

271、 our revenues generated from advertising(Google advertising),other sources(Google subscriptions,platforms,and devices),Google Cloud,and Other Bets have been,and may continue to be,affected by other factors unique to each set of revenues,as described below.Google ServicesGoogle Services revenues cons

272、ist of Google advertising as well as Google subscriptions,platforms,and devices revenues.Google AdvertisingGoogle advertising revenues are comprised of the following:Google Search&other,which includes revenues generated on Google search properties(including revenues from traffic generated by search

273、distribution partners who use G as their default search in browsers,toolbars,etc.),and other Google owned and operated properties like Gmail,Google Maps,and Google Play;YouTube ads,which includes revenues generated on YouTube properties;andGoogle Network,which includes revenues generated on Google N

274、etwork properties participating in AdMob,AdSense,and Google Ad Manager.We use certain metrics to track how well traffic across various properties is monetized as it relates to our advertising revenues:paid clicks and cost-per-click pertain to traffic on Google Search&other properties,while impressio

275、ns and cost-per-impression pertain to traffic on our Google Network properties.32Paid clicks represent engagement by users and include clicks on advertisements by end-users on Google search properties and other Google owned and operated properties including Gmail,Google Maps,and Google Play.Cost-per

276、-click is defined as click-driven revenues divided by our total number of paid clicks and represents the average amount we charge advertisers for each engagement by users.Impressions include impressions displayed to users on Google Network properties participating primarily in AdMob,AdSense,and Goog

277、le Ad Manager.Cost-per-impression is defined as impression-based and click-based revenues divided by our total number of impressions,and represents the average amount we charge advertisers for each impression displayed to users.As our business evolves,we periodically review,refine,and update our met

278、hodologies for monitoring,gathering,and counting the number of paid clicks and the number of impressions,and for identifying the revenues generated by the corresponding click and impression activity.Fluctuations in our advertising revenues,as well as the change in paid clicks and cost-per-click on G

279、oogle Search&other properties and the change in impressions and cost-per-impression on Google Network properties and the correlation between these items have been,and may continue to be,affected by factors in addition to the general factors described above,such as:advertiser competition for keywords

280、;changes in advertising quality,formats,delivery or policy;changes in device mix;seasonal fluctuations in internet usage,advertising expenditures,and underlying business trends,such as traditional retail seasonality;andtraffic growth in emerging markets compared to more mature markets and across var

281、ious verticals and channels.Google subscriptions,platforms,and devicesGoogle subscriptions,platforms,and devices revenues are comprised of the following:consumer subscriptions,which primarily include revenues from YouTube services,such as YouTube TV,YouTube Music and Premium,and NFL Sunday Ticket,as

282、 well as Google One;platforms,which primarily include revenues from Google Play sales of apps and in-app purchases;devices,which primarily include sales of the Pixel family of devices;andother products and services.Fluctuations in our Google subscriptions,platforms,and devices revenues have been,and

283、 may continue to be,affected by factors in addition to the general factors described above,such as changes in customer usage and demand,number of subscribers,and the timing of product launches.Google CloudGoogle Cloud revenues are comprised of the following:Google Cloud Platform,which generates cons

284、umption-based fees and subscriptions for infrastructure,platform,and other services.These services provide access to solutions such as AI offerings including our AI infrastructure,Vertex AI platform,and Gemini for Google Cloud:cybersecurity;and data and analytics;Google Workspace,which includes subs

285、criptions for cloud-based communication and collaboration tools for enterprises,such as Calendar,Gmail,Docs,Drive,and Meet,with integrated features like Gemini for Google Workspace;and other enterprise services.Fluctuations in our Google Cloud revenues have been,and may continue to be,affected by fa

286、ctors in addition to the general factors described above,such as changes in customer usage and demand.Other BetsRevenues from Other Bets are generated primarily from the sale of healthcare-related services and internet services.33Costs and ExpensesOur cost structure has two components:cost of revenu

287、es and operating expenses.Our operating expenses include costs related to R&D,sales and marketing,and general and administrative functions.Certain of our costs and expenses,including those associated with the operation of our technical infrastructure as well as components of our operating expenses,a

288、re generally less variable in nature and may not correlate to changes in revenue.Additionally,fluctuations in employee compensation expenses may not directly correlate with changes in headcount due to factors such as annual SBC awards that generally vest over four years.Cost of RevenuesCost of reven

289、ues is comprised of TAC and other costs of revenues.TAC includes:amounts paid to our distribution partners who make available our search access points and services.Our distribution partners include browser providers,mobile carriers,original equipment manufacturers,and software developers;andamounts

290、paid to Google Network partners primarily for ads displayed on their properties.Other cost of revenues primarily includes:content acquisition costs,which are payments to content providers from whom we license video and other content for distribution,primarily related to YouTube(we pay fees to these

291、content providers based on revenues generated,subscriber counts,or a flat fee);depreciation expense related to our technical infrastructure;employee compensation expenses related to our technical infrastructure and other operations such as content review and customer and product support;inventory an

292、d other costs related to the devices we sell;andother technical infrastructure operations costs,including network capacity,energy,and equipment costs.TAC as a percentage of revenues generated from ads placed on Google Network properties are significantly higher than TAC as a percentage of revenues g

293、enerated from ads placed on Google Search&other properties,because most of the advertiser revenues from ads served on Google Network properties are paid as TAC to our Google Network partners.Operating ExpensesOperating expenses are generally incurred during our normal course of business,which we cat

294、egorize as either R&D,sales and marketing,or general and administrative.The main components of our R&D expenses are:depreciation;employee compensation expenses for engineering and technical employees responsible for R&D related to our existing and new products and services;andthird-party services fe

295、es primarily relating to consulting and outsourced services in support of our engineering and product development efforts.The main components of our sales and marketing expenses are:employee compensation expenses for employees engaged in sales and marketing,sales support,and certain customer service

296、 functions;andspend relating to our advertising and promotional activities in support of our products and services.The main components of our general and administrative expenses are:employee compensation expenses for employees in finance,human resources,information technology,legal,and other adminis

297、trative support functions;expenses relating to legal and other matters,including certain fines and settlements;and 34third-party services fees,including audit,consulting,outside legal,and other outsourced administrative services.Other Income(Expense),Net OI&E,net primarily consists of interest incom

298、e(expense),the effect of foreign currency exchange gains(losses),net gains(losses)and impairment on our marketable and non-marketable securities,performance fees,and income(loss)and impairment from our equity method investments.For additional information,including how we account for our investments

299、and factors that can drive fluctuations in the value of our investments,see Note 1 of the Notes to Consolidated Financial Statements included in Part II,Item 8 and Item 7A,“Quantitative and Qualitative Disclosures About Market Risk”in our Annual Report on Form 10-K for the fiscal year ended December

300、 31,2024 as well as Note 3 of the Notes to Consolidated Financial Statements included in Item 1 of this Quarterly Report on Form 10-Q.Provision for Income Taxes Provision for income taxes represents the estimated amount of federal,state,and foreign income taxes incurred in the U.S.and the many juris

301、dictions in which we operate.The provision includes the effect of reserve provisions and changes to reserves that are considered appropriate as well as the related net interest and penalties.For additional information,see Note 1 of the Notes to Consolidated Financial Statements included in Part II,I

302、tem 8 in our Annual Report on Form 10-K for the fiscal year ended December 31,2024 as well as Note 14 of the Notes to Consolidated Financial Statements included in Item 1 of this Quarterly Report on Form 10-Q.Executive OverviewThe following table summarizes consolidated financial results(in millions

303、,except per share information and percentages):Three Months EndedMarch 31,20242025$Change%ChangeConsolidated revenues$80,539$90,234$9,695 12%Change in consolidated constant currency revenues(1)14%Cost of revenues$33,712$36,361$2,649 8%Operating expenses$21,355$23,267$1,912 9%Operating income$25,472$

304、30,606$5,134 20%Operating margin 32%34%2%Other income(expense),net$2,843$11,183$8,340 293%Net income$23,662$34,540$10,878 46%Diluted EPS(2)$1.89$2.81$0.92 49%(1)See Use of Non-GAAP Constant Currency Information below for details relating to our use of constant currency information.(2)For additional

305、information on the calculation of diluted EPS,see Note 12 of the Notes to Consolidated Financial Statements included in Item 1 of this Quarterly Report on Form 10-Q.Revenues were$90.2 billion,an increase of 12%year over year,primarily driven by an increase in Google Services revenues of$6.9 billion,

306、or 10%,and an increase in Google Cloud revenues of$2.7 billion,or 28%.Total constant currency revenues,which exclude the effect of hedging,increased 14%year over year.Cost of revenues was$36.4 billion,an increase of 8%year over year,primarily driven by increases in content acquisition costs,TAC,and

307、depreciation expense.35Operating expenses were$23.3 billion,an increase of 9%year over year,primarily driven by increases in depreciation expense,employee compensation expenses,and other technical infrastructure operations costs.Other Information:In March 2025,we entered into a definitive agreement

308、to acquire Wiz,a leading cloud security platform,for$32.0 billion,subject to closing adjustments,in an all-cash transaction.The acquisition of Wiz is expected to close in 2026,subject to customary closing conditions,including the receipt of regulatory approvals.Upon the close of the acquisition,Wiz

309、will be part of the Google Cloud segment.In April 2025,the Board of Directors of Alphabet declared a quarterly cash dividend of$0.21 representing a 5%increase from the previous quarterly dividend of$0.20.The dividend is payable on June 16,2025 to stockholders of record for each of the companys Class

310、 A,Class B,and Class C shares as of June 9,2025.For additional information,see Note 11 of the Notes to Consolidated Financial Statements included in Item 1 of this Quarterly Report on Form 10-QRepurchases of Class A and Class C shares were$2.8 billion and$12.5 billion,respectively,totaling$15.3 bill

311、ion for the three months ended March 31,2025.For additional information,see Note 11 of the Notes to Consolidated Financial Statements included in Item 1 of this Quarterly Report on Form 10-Q.OI&E of$11.2 billion for the three months ended March 31,2025 included an$8.0 billion unrealized gain on our

312、non-marketable equity securities related to our investment in a private company.Operating cash flow was$36.2 billion for the three months ended March 31,2025.Capital expenditures,which primarily reflected investments in technical infrastructure,were$17.2 billion for the three months ended March 31,2

313、025.As of March 31,2025,we had 185,719 employees.We are monitoring ongoing developments surrounding international trade and the macroeconomic environment.As a result of volatility in international trade and financial markets,we may experience direct and indirect effects on our business,operations,an

314、d financial results.Our past results may not be indicative of our future performance,and our financial results may differ materially from historical trends.Financial ResultsRevenuesThe following table presents revenues by type(in millions):Three Months EndedMarch 31,20242025Google Search&other$46,15

315、6$50,702 YouTube ads 8,090 8,927 Google Network 7,413 7,256 Google advertising 61,659 66,885 Google subscriptions,platforms,and devices 8,739 10,379 Google Services total 70,398 77,264 Google Cloud 9,574 12,260 Other Bets 495 450 Hedging gains(losses)72 260 Total revenues$80,539$90,234 36Google Serv

316、icesGoogle advertising revenuesGoogle Search&otherGoogle Search&other revenues increased$4.5 billion from the three months ended March 31,2024 to the three months ended March 31,2025.The overall growth was driven by interrelated factors including increases in search queries resulting from growth in

317、user adoption and usage on mobile devices;growth in advertiser spending;and improvements we have made in ad formats and delivery.YouTube adsYouTube ads revenues increased$837 million from the three months ended March 31,2024 to the three months ended March 31,2025.The growth was driven by our direct

318、 response advertising products followed by our brand advertising products,both of which benefited from increased spending by our advertisers.Google NetworkGoogle Network revenues decreased$157 million from the three months ended March 31,2024 to the three months ended March 31,2025,primarily due to

319、the unfavorable effect of foreign currency exchange rates and a decrease in Google Ad Manager and AdMob revenues.These decreases were partially offset by an increase in AdSense revenues.Monetization MetricsThe following table presents changes in monetization metrics for Google Search&other revenues(

320、paid clicks and cost-per-click)and Google Network revenues(impressions and cost-per-impression),expressed as a percentage,from three months ended March 31,2024 to three months ended March 31,2025:Google Search&otherPaid clicks change 2%Cost-per-click change 7%Google NetworkImpressions change(5)%Cost

321、-per-impression change 4%Changes in paid clicks and impressions are driven by a number of interrelated factors,including changes in advertiser spending;ongoing product and policy changes;and,as it relates to paid clicks,fluctuations in search queries resulting from changes in user adoption and usage

322、,primarily on mobile devices.Changes in cost-per-click and cost-per-impression are driven by a number of interrelated factors including changes in device mix,geographic mix,advertiser spending,ongoing product and policy changes,product mix,property mix,and changes in foreign currency exchange rates.

323、Google subscriptions,platforms,and devicesGoogle subscriptions,platforms,and devices revenues increased$1.6 billion from the three months ended March 31,2024 to the three months ended March 31,2025.The growth was primarily driven by an increase in subscription revenues.The increase in subscription r

324、evenues was primarily due to growth in the number of paid subscribers across both YouTube services and Google One.Google CloudGoogle Cloud revenues increased$2.7 billion from the three months ended March 31,2024 to the three months ended March 31,2025 primarily driven by growth in Google Cloud Platf

325、orm largely from infrastructure services.37Revenues by GeographyThe following table presents revenues by geography as a percentage of revenues,determined based on the addresses of our customers:Three Months Ended March 31,20242025United States 48%49%EMEA 30%29%APAC 16%16%Other Americas 6%6%Hedging g

326、ains(losses)0%0%For additional information,see Note 2 of the Notes to Consolidated Financial Statements included in Item 1 of this Quarterly Report on Form 10-Q.Use of Non-GAAP Constant Currency InformationInternational revenues,which represent a significant portion of our revenues,are generally tra

327、nsacted in multiple currencies and therefore are affected by fluctuations in foreign currency exchange rates.The effect of currency exchange rates on our business is an important factor in understanding period-to-period comparisons.We use non-GAAP constant currency revenues(constant currency revenue

328、s)and non-GAAP percentage change in constant currency revenues(percentage change in constant currency revenues)for financial and operational decision-making and as a means to evaluate period-to-period comparisons.We believe the presentation of results on a constant currency basis in addition to GAAP

329、 results helps improve the ability to understand our performance,because it excludes the effects of foreign currency volatility that are not indicative of our core operating results.Constant currency information compares results between periods as if exchange rates had remained constant period over

330、period.We define constant currency revenues as revenues excluding the effect of foreign currency exchange rate movements(FX Effect)as well as hedging activities,which are recognized at the consolidated level.We use constant currency revenues to determine the constant currency revenue percentage chan

331、ge on a year-on-year basis.Constant currency revenues are calculated by translating current period revenues using prior year comparable period exchange rates,as well as excluding any hedging effects realized in the current period.Constant currency revenue percentage change is calculated by determini

332、ng the change in current period revenues over prior year comparable period revenues where current period foreign currency revenues are translated using prior year comparable period exchange rates and hedging effects are excluded from revenues of both periods.These results should be considered in add

333、ition to,not as a substitute for,results reported in accordance with GAAP.Results on a constant currency basis,as we present them,may not be comparable to similarly titled measures used by other companies and are not a measure of performance presented in accordance with GAAP.38The following table presents the foreign currency exchange effect on international revenues and total revenues(in millions