Facebook reported better than expected revenues in and revealed a sizeable jump in its mobile user base in its third quarter earnings report, helping to boost its share price.
Facebook reported third quarter revenue of $1.26bn, a year-on-year increase of 32 percent from $954m in 2011, when it wasn't publicly traded. Shares in the company jumped as high as 13 percent in after hours trading following the news.
While the company reported a $59m loss for the quarter, compared to a profit of $229m in the same period last year, investors were still happy with the overall growth in revenue.
During its third quarter earnings report Facebook stated that its monthly active users (MAUs) grew to 1.1 billion. The mark represents a 26 percent increase from this time last year.
According to Facebook, 604 million of its MAUs were mobile users, up 61 percent year-on-year.
Mobile is seen as a key area for Facebook going forward. During his call with investors, chief executive Mark Zuckerberg said Facebook has the chance to reach more users through mobile efforts than ever before.
"I want to dispel this myth that Facebook can't make money on mobile," he added.
Facebook's efforts to make money off of mobile users are nothing new. The company talked up its mobile agenda last quarter. However, this quarter sees Facebook starting to gain traction in mobile ad revenue.
Mobile revenue reportedly was a driver of the company's overall advertising revenue increase. The company reported that 14 percent of its $1bn-plus in advertising revenue came from mobile users.
Facebook credits that number to new offerings like the company's new Offers service.
While Zuckerberg saw positive movement in its endeavour to monetise mobile, he was also quick to point out that it's just the beginning.
"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," said Zuckerberg.
"We are deeply integrating monetisation into our product teams in order to build a stronger, more valuable company."
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