Facebook Reports Better-Than-Expected Earnings as Ad Sales Jump
The company's third-quarter results were helped by the launch of new ad services and updates to its mobile app.
This story originally appeared on Reuters
Facebook Inc. reported a better-than-expected 40.5 percent jump in quarterly revenue helped by the launch of new advertisement services and updates to its mobile app, which drove more ad sales.
Facebook shares rose 5 percent to $107.75 in after-hours trading on Wednesday.
The company's third-quarter profit also beat Wall Street's average estimate despite increased spending on Messenger, WhatsApp and Oculus, its virtual reality business.
Ad revenue grew 45.4 percent to $4.30 billion, with mobile ads accounting for 78 percent of the total versus 66 percent in the same quarter last year.
Facebook, the world's largest social network, continued to expand its reach, hitting 1.55 billion monthly active users as of Sept 30, up 14 percent from a year earlier. Of these, 1.39 billion accessed the service through mobile devices.
Market research firm FactSet StreetAccount had predicted 1.53 billion monthly active users, with 1.36 billion on mobile.
Revenue jumped to $4.50 billion in the third quarter ended Sept 30, from $3.20 billion a year earlier. Analysts expected revenue of $4.37 billion, according to Thomson Reuters I/B/E/S.
Net income attributable to stockholders rose to $891 million, or 31 cents per share, from $802 million, or 30 cents per share.
Excluding items, the Menlo Park, California-based company earned 57 cents per share, ahead of analysts' average estimate of 52 cents per shear.
Through Wednesday's close of $103.99, shares of the company have risen 33 percent this year.
(Reporting By Lehar Maan in Bengaluru; Editing by Sayantani Ghosh)