Oct. 23, 2012, 4:41 p.m. EDT
Facebook shares up as ad sales surge
Monthly users now at 1 billion; monthly mobile users up 61%
By Benjamin Pimentel, MarketWatch
SAN FRANCISCO (MarketWatch) — Shares of Facebook Inc. jumped Tuesday after the social networking company reported a strong results highlighted by a surge in advertising revenue.
Facebook FB +10.05% was up 10% in after-hours trading as the company’s results also modestly exceeded Street expectations.
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Facebook CEO Mark Zuckerberg speaks during a question and answer session at the TechCrunch Disrupt conference.
The Menlo Park, Calif.-based company reported a third-quarter loss of $59 million, or 2 cents a share, compared with a profit of $227 million, or 10 cents a share, for the year-earlier period.
Revenue climbed to $1.23 billion from $954 million.
Adjusted profit was 12 cents a share. Analysts were expecting the social media company to report a profit of 11 cents a share, on revenue of $1.23 billion, according to a consensus survey by FactSet.
Facebook said revenue from advertising which made up 86% of its total sales jumped 36%. Susquehanna analyst Herman Leung said that was “much better than what the Street expected.”
Facebook also said it now has 1.01 billion monthly active users, up 26% from the year-earlier period. Meanwhile, Facebook’s mobile monthly active users soared 61% to 604 million from the year-ago period.
In a statement, Chief Executive Mark Zuckerberg said, “People who use our mobile products are more engaged, and we believe we can increase engagement even further as we continue to introduce new products and improve our platform.”