Facebook share price posted a 36% rise in revenue to $1.09 billion (£0.68 billion), despite posting third-quarter loss of $59 million (£36.9 million) as costs and expenses rose 64% to $885 million (£555 million).
Facebook share price rose after gaining less than 1% to $19.50 (£12.22) at the close in New York yesterday. Facebook stock has fallen 49% since the IPO debut in May. But the Facebook stock soared in after-hours trading, at one point rising 20%.
The social networking company Facebook reported that 14% of advertising revenues, about $150 million (£94 million), came from mobile, an area where the company and analysts have expressed concerns about earning revenues.
Facebook’s co-founder Mark Zuckerberg also defended the $1 billion (£0.62) purchase of Instagram, the photo-sharing app company, made shortly before Facebook’s controversial IPO. Zuckerberg said the number of Instagram users had grown to 100 million from 27 million since the purchase.
Mark Zuckerberg said that Facebook was just at the beginning of churning profits from mobile, the fastest growing way that people access the service. Zuckerberg said 70% of mobile users visit Facebook every day and that he expected advertising revenues to be better on mobile as the ads will be more integrated into the service.
It may be noted that Facebook has suffered when its much-hyped IPO fared badly. The social networking company was briefly valued at $100 billion (£62.7 billion) on its first day of trading but is now valued at $41 billion (£25.7 billion).
Facebook plans to launch a tool called “Facebook Exchange”, which would enable companies tailor ads on Facebook based on their Web-browsing history outside of the service. Facebook said that through this tool, advertisers can use data which they have collected from their own customers, such as e-mails and phone numbers, to target those users on Facebook, using a software tool that is designed to protect the members’ identities.
Facebook shares are likely to come under pressure in the coming weeks as more shares will be freed up for potential trades.