Facebook‘s stock soared after the company reported a 60% revenue increase in the third quarter, surpassing Wall Street’s expectations for the second quarter in a row.
The world’s largest social network said it earned 425 million dollars (£265.4m), or 17 cents per share. That’s up from a loss of 59 million dollars (£36.8m), or 2 cents per share, in the same period a year ago.
Shares of Menlo Park, California-based Facebook jumped 5.22 dollars (£3.26), or 10.%, to 54.23 dollars (£33.9).
Adjusted earnings were 621 million dollars (£387.7m), or 25 cents per share in the latest quarter, 6 cents better than analysts expected. This figure excludes special items, mainly stock compensation expenses.
Revenue grew 6% to 2.02 billion dollars (£1.261bn) from 1.26 billion dollars (£786.7m), helped by increasing mobile advertising revenue.
Analysts, on average, were expecting revenue of 1.91 billion dollars (£1.193bn), according to FactSet.
Facebook’s advertising revenue was 1.8 billion dollars (£1.124bn), up 66% from a year ago. Mobile ads accounted for 49% of the company’s total ad revenue during the quarter. In the second quarter, mobile ads amounted to 41% of the total. The increase shows that Facebook’s strategy to become a “mobile-first” company is paying off.
Facebook went public in May 2012 at 38 dollars (£23.7) per share. It took the stock more than a year to surpass that price as the company worked to prove that it could grow mobile advertising revenue at a time when an increasing number of its users were accessing it on cellphones and tablet computers.
Facebook results beat expectations
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