Google's (GOOG) ad prices (cost per click) fell 4% Q/Q and 8% Y/Y in Q3, after dropping 2% Q/Q and 6% Y/Y in Q2. However, its paid clicks rose 8% Q/Q and 26% Y/Y, an improvement from 23% Y/Y growth in Q2 and 20% in Q1. While the mobile transition (and perhaps Enhanced Campaigns) continues to pressure ad prices, it's also giving a lift to search volumes.
Traffic acquisition costs fell to 24% of ad revenue from 25% in Q2 and 26% a year ago. International made up 56% of revenue, up from 55% in Q2 and 53% a year ago.
Google Sites revenue (68% of Google segment revenue) +22% Y/Y, up from +18% in Q2. Google Network revenue (3rd-party sites, 23% of total) only +1%, down from Q2's +7% and Q1's +12%, as stricter policies continue taking a toll. Other Google Revenue (inc. Nexus hardware and search appliances, 9% of total) +85%.
Motorola Mobility, which launched the Moto X and new Droid models, posted revenue of $1.18B, +18% Q/Q but -34% Y/Y. The unit had a $248M op. loss.
Opex +9% Y/Y and accounting for 34% of revenue vs. 35% a year ago. Capex was $2.29B, up from Q2's $1.6B. Free cash flow was $2.79B, below net income of $3.64B. Headcount rose by 1.6K to 46.4K.