Facebook Stock Climbs 10% Thanks To Mobile Ad Revenue

Facebook stock climbed by 10 percent in after hours trading on Tuesday after the company topped analysts estimates. In releasing its third quarter financials, Facebook showcased stronger than expected mobile ad and per user revenue.

In its second quarter as a publicly traded company, Facebook reported adjusted earnings of 12 cents per share on $1.262 billion on a non-GAAP basis. Analysts had expected 11 cents per share on revenues of $1.23 billion.

According to Social News Daily:

“On a GAAP basis, Facebook posted a net loss of 2 cents per share. Adjusted net income was $311 million which again beat analysts’ estimates of $289.7 million. Daily active users were up 28 percent at 584 million compared to the same time last year. Also, mobile active users were up 61 percent compared to last year at 604 million.”

Facebook’s biggest push came from mobile advertising revenue, which grew by 14 percent on mobile for Q3 2012. Overall, Facebook revenue was up by 36 percent year-over-year.

Payments revenue was also up by 13 percent but was down 9 percent sequentially at $176 million.

Facebook also announced that it is capitalizing on each user with an average revenue per user rate of $1.29, up by 5 cents year-over-year and one percent over last quarter’s earnings report. While an increase in per user revenue earnings is a positive trend for Facebook, that number is still below Q4 2011’s earnings of $1.38 per user.

With Facebook’s mobile platform now working much faster on iOS and mobile ads becoming more targeted, the future at Facebook might be bright. Now we wait nervously for Facebook to finally launch its fully reworked Google Android app.

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