>>34258508>Revenues were $257.6 billion, an increase of 41%. The increase in revenues was primarily driven by Google
Services and Google Cloud. The adverse effect of COVID-19 on 2020 advertising revenues also contributed to
the year-over-year growth.>Cost of revenues was $110.9 billion, an increase of 31%, primarily driven by increases in TAC and content
acquisition costs. An overall increase in data centers and other operations costs was partially offset by a
reduction in depreciation expense due to the change in the estimated useful life of our servers and certain
network equipment.>Operating expenses were $68.0 billion, an increase of 20%, primarily driven by headcount growth, increases in
advertising and promotional expenses and charges related to legal matters.>YouTube ads revenues increased $9.1 billion from 2020 to 2021. Growth was driven by our direct response and
brand advertising products. Growth for our direct response advertising products was primarily driven by increased
advertiser spending as well as improvements to ad formats and delivery. Growth for our brand advertising products
was primarily driven by increased spending by our advertisers and the adverse effect of COVID-19 on 2020 revenues.
It's a temporary bump in their revenue due to lockdowns.
At the same time the life expectancy of their equipment is reduced which will likely mean a great cost in replacement in the future.
So, seen over more than a single year, they're still at a great loss.