00:00
Speaker A
We had a strong third quarter, delivering our 13th consecutive quarter of double digit revenue growth. Consolidated revenues were $127.6 billion up 25% in both reported and constant currency.
00:16
Speaker A
Total cost of revenue was $51.4 billion, up 24%.
00:20
Speaker A
TAC was $16.4 billion up 10%.
00:26
Speaker A
Other costs of revenues was $35.1 billion up 32%, driven by hardware costs primarily related to the sales of TPU systems, increase in depreciation, content acquisition costs and technical infrastructure operations costs.
00:40
Speaker A
Total operating expenses were up 20% to $35.6 billion.
00:47
Speaker A
R&D expenses increased by 36% driven by compensation, primarily for investment in AI talent, as well as depreciation.
00:56
Speaker A
Sales and marketing expenses were up 22% due to investments in Gemini and compensation.
01:03
Speaker A
In G&A expenses decreased 17% primarily due to lapping of higher legal expenses that occurred in Q3 last year, partially offset by current year legal charges.
01:15
Speaker A
Operating income increased 30% to $40.6 billion, and operating margin was 31.8%.
01:23
Speaker A
Other income and expenses was negative $8.2 billion due primarily to an unrealized loss from our investment in SpaceX from a decline in its stock price in the third quarter.
