Facebook hits $59m loss but revenue rises on ads surge.
The Social Network reported a net loss (after tax) for the third quarter of $59 million, yesterday, compared to profit $227m Q3 2011.
But it still has over one billion users, and analysts are happy as revenue rose 32% $1.26 billion.
Revenue from ads soared 32% to $1.09 bn, representing 86% of total revenues at the social giant.
The result was “much better than what the Street had expected,” Susquehanna analyst Herman Leung, told MarketWatch.
Facebook shares rose almost 13% to $22.01 on the Nasdaq, after the announcement.
And, it seems, more people are using the network than ever – with over 1.01 bn users, and monthly, daily users rising almost one third.
“I’m also really happy that over 600 million people now share and connect on Facebook every month using mobile devices,” said Mark Zuckerberg, Facebook CEO.
“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.”
There were a massive 604 m Facebookers on mobile – an increase of 61%. Mobile also generated 14% of ad revenue during Q3, something analysts were also rejoicing, seeing m-commerce as a major moneyspinner, considering its enviable audience figures.
On the ads front, which Facebook launched several new products, including Custom Audiences, Facebook Exchange, Offers, and mobile app install ads.
Excusing share-based compensation and tax expenses, Facebook recorded a profit of $311m or $0.12 per share. Expenses for the social network rose 64% edging close to the $1bn mark, at $885m.
Earnings per share was ($0.02), compared to $0.10 a year ago.
And in a nod to investors eager to get their returns, 28-year old Zucks added: “We are deeply integrating monetization into our product teams in order to build a stronger, more valuable company.”