Alphabet's CEO, Sundar Pichai, opened the company's earnings call last week with a triumphant declaration: that "every major part of […]
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jb@pinerockpoint.comNov 4, 2025 8:06 am
Your insights into GOOG have been absurdly profitable.
- Thank you doesn't cut it remotely.
- You've covered this but almost nobody gets it re the Network Biz.
- The 10% of revs that is Network is reported *gross*, where GOOG only keeps 30% of it as like a brokerage fee.
- So when considering "how much does Network matter" - it's not 10%, it's 3%.
- AKA "not at all" and especially (as you've noted) when considering the legal etc. hassle that gets foisted on them for doing what is effectively now charity work.
Per 2024 10K pg 56 "Generally, we report advertising revenues for ads placed on Google Network properties on a gross basis, that is, the amounts billed to our customers are recorded as revenues, and amounts paid to Google Network partners are recorded as cost of revenues."
Comments:
Your insights into GOOG have been absurdly profitable.
- Thank you doesn't cut it remotely.
- You've covered this but almost nobody gets it re the Network Biz.
- The 10% of revs that is Network is reported *gross*, where GOOG only keeps 30% of it as like a brokerage fee.
- So when considering "how much does Network matter" - it's not 10%, it's 3%.
- AKA "not at all" and especially (as you've noted) when considering the legal etc. hassle that gets foisted on them for doing what is effectively now charity work.
Per 2024 10K pg 56 "Generally, we report advertising revenues for ads placed on Google Network properties on a gross basis, that is, the amounts billed to our customers are recorded as revenues, and amounts paid to Google Network partners are recorded as cost of revenues."