Google makes billions of dollars annually, but how does Google make money? Here are some of the details on how Google Makes Money:

Google makes money through Sites Revenues - Google-owned sites generated revenues of $2.28 billion, or 62% of total revenues, in the first quarter of 2007. This represents a 76% increase over first quarter 2006 revenues of $1.30 billion and a 15% increase over fourth quarter 2006 revenues of $1.98 billion.

Google makes money through Network Revenues - Google’s partner sites generated revenues, through AdSense programs, of $1.35 billion, or 37% of total revenues, in the first quarter of 2007. This represents a 45% increase over network revenues of $928 million generated in the first quarter of 2006 and a 12% increase over fourth quarter 2006 revenues of $1.20 billion.

Google makes money through International Revenues - Revenues from outside of the United States totaled $1.71 billion, representing 47% of total revenues in the first quarter of 2007, compared to 42% in the first quarter of 2006 and 44% in the fourth quarter of 2006. Had foreign exchange rates remained constant from the fourth quarter of 2006 through the first quarter of 2007, our revenues in the first quarter of 2007 would have been $23 million lower. Had foreign exchange rates remained constant from the first quarter of 2006 through the first quarter of 2007, our revenues in the first quarter of 2007 would have been $115 million lower.

Download PDF version of how Google makes money

See how Google made money in previous quarters:
- Q1 2008 Release
- Q1 2007 Release
- Q4 2006 Release
- Q3 2006 Release
- Q2 2006 Release
- Q1 2006 Release

Update: How Google Makes Money - Q3 2007

• Google-owned sites accounted for 65 percent of total revenue, or $2.73 billion, with partner sites representing 34 percent of revenue, or $1.45 billion. Partner sites refer to Google’s AdSense program.
• International revenue was $2.03 billion, or 48 percent of revenue. Google benefited from a currency exchange bump and noted that if exchange rates were constant from the second quarter to the third quarter its international revenue would have been $24 million less. Google’s United Kingdom revenue totaled $661 million.
• Operating expenses in the third quarter as a percentage of revenue were down a bit to 30 percent of revenue from 31 percent in the second quarter. In absolute terms, Google’s operating expenses were $1.25 billion, up from $1.21 billion in the second quarter.
• Google spent $553 million in capital expenditures in the third quarter. Most of that was IT spending.
• The company had $13.1 billion in cash as of Sept. 30 and 15,916 employees, up from 13,786 employees as of June 30.

How Google Makes Money: Q4 2007

Google Sites Revenues - Google-owned sites generated revenues of $3.12 billion, or 65% of total revenues, in the fourth quarter of 2007. This represents a 58% increase over fourth quarter 2006 revenues of $1.98 billion and a 14% increase over third quarter 2007 revenues of $2.73 billion.

Google Network Revenues - Google's partner sites generated revenues, through AdSense programs, of $1.64 billion, or 34% of total revenues, in the fourth quarter of 2007. This represents a 37% increase over network revenues of $1.20 billion generated in the fourth quarter of 2006 and a 12% increase over third quarter 2007 revenues of $1.45 billion.

International Revenues - Revenues from outside of the United States totaled $2.32 billion, representing 48% of total revenues in the fourth quarter of 2007, compared to 44% in the fourth quarter of 2006 and 48% in the third quarter of 2007. Had foreign exchange rates remained constant from the third quarter of 2007 through the fourth quarter of 2007, our revenues in the fourth quarter of 2007 would have been $94 million lower. Had foreign exchange rates remained constant from the fourth quarter of 2006 through the fourth quarter of 2007, our revenues in the fourth quarter of 2007 would have been $195 million lower.

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