Posted On: 11/05/2013 12:17:23 AM
Post# of 94308
Facebook Swings to Profit on Mobile Growth
Facebook Inc.'s (FB) revival continued Wednesday as its surging mobile-advertising business helped the social network post a third-quarter profit, making its bumpy initial public offering last year seem like a distant memory.
Shares were up 15% at $56.56 after hours as results easily beat expectations.
Revenue increased 60% to $2.02 billion, as Facebook's advertising products improved and gained traction among marketers. Analysts polled by Thomson Reuters had expected revenue of $1.91 billion.
Facebook said its monthly active users grew 18% to 1.19 billion, extending the company's dominance as the world's largest social network.
Revenue from Facebook's mobile-advertising business, which barely existed a year ago, is now 49% of the company's advertising business, up from 41% in the second quarter. Overall advertising revenue was at $1.8 billion, up 66% from the same period last year.
Mobile advertising is crucial for Facebook, as its users increasingly tap the service via smartphones and tablets. The company's mobile users increased 45% to 874 million, faster than the overall growth in users.
Facebook reported net income of $425 million, or 17 cents a share, versus a loss of $59 million, or two cents a share, in the year-ago period. Excluding certain expenses, the company reported earnings of 25 cents a share, up from 12 cents a share a year ago, and higher than analysts' projections of 19 cents.
Shares of Facebook have nearly doubled since July, when it announced a big leap in its mobile advertising revenue. The stock currently trades at roughly 67 times estimates for adjusted 2013 earnings.
-Michael Calia contributed to this article.
Write to Reed Albergotti at reed.albergotti@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
Facebook Inc.'s (FB) revival continued Wednesday as its surging mobile-advertising business helped the social network post a third-quarter profit, making its bumpy initial public offering last year seem like a distant memory.
Shares were up 15% at $56.56 after hours as results easily beat expectations.
Revenue increased 60% to $2.02 billion, as Facebook's advertising products improved and gained traction among marketers. Analysts polled by Thomson Reuters had expected revenue of $1.91 billion.
Facebook said its monthly active users grew 18% to 1.19 billion, extending the company's dominance as the world's largest social network.
Revenue from Facebook's mobile-advertising business, which barely existed a year ago, is now 49% of the company's advertising business, up from 41% in the second quarter. Overall advertising revenue was at $1.8 billion, up 66% from the same period last year.
Mobile advertising is crucial for Facebook, as its users increasingly tap the service via smartphones and tablets. The company's mobile users increased 45% to 874 million, faster than the overall growth in users.
Facebook reported net income of $425 million, or 17 cents a share, versus a loss of $59 million, or two cents a share, in the year-ago period. Excluding certain expenses, the company reported earnings of 25 cents a share, up from 12 cents a share a year ago, and higher than analysts' projections of 19 cents.
Shares of Facebook have nearly doubled since July, when it announced a big leap in its mobile advertising revenue. The stock currently trades at roughly 67 times estimates for adjusted 2013 earnings.
-Michael Calia contributed to this article.
Write to Reed Albergotti at reed.albergotti@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
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