Google said Thursday its profit in the quarter ended September 30, 2014 dipped slightly from a year earlier, even as revenues for the technology giant showed a sharp increase. Google reported consolidated revenues of $16.52 billion, an increase of 20% compared to the third quarter of 2013. Google reports advertising revenues, consistent with GAAP, on a gross basis without deducting traffic acquisition costs (TAC). In the third quarter of 2014, TAC totaled $3.35 billion, or 23% of advertising revenues. Net third quarter profit fell five percent from the same period a year ago to $2.8 billion.

"Google had another strong performance this quarter, with revenue up 20% year on year, at $16.5 billion," said Patrick Pichette, CFO of Google. "We continue to be excited about the growth in our advertising and emerging businesses."

During Q3, Google's sites generated revenues of $11.25 billion, or 68% of total revenues. This represents a 20% increase over third quarter of 2013 sites revenues. The company's partner sites generated revenues of $3.43 billion, or 21% of total revenues, represening a 9% increase over third quarter of 2013.
Other revenues were $1.84 billion, or 11% of total revenues. The company's revenues from outside of the United States totaled $9.55 billion, representing 58% of total revenues in the third quarter of 2014.

Aggregate paid clicks, which include clicks related to ads served on Google sites and the sites of our Network members, increased approximately 17% over the third quarter of 2013 and increased approximately 2% over the second quarter of 2014.

Cost-Per-Click - Average cost-per-click, which includes clicks related to ads served on Google sites and the sites of our Network members, decreased approximately 2% over the third quarter of 2013 and remained constant from the second quarter of 2014.