Facebook Inc.'s shares are surging after the social network reported a 53% increase in revenue and strong advertising growth in the second quarter.
The social network reported profit of $333 million, or 13 cents a share, on revenue of $1.81 billion. For the second quarter of 2012, Facebook reported a $157-million loss on revenue of $1.18 billion.
After adjusted for one-time events, Facebook earned 19 cents a share.
That’s better than Wall Street expected. Analysts had forecast earnings of 14 cents a share on revenue of $1.62 billion, according to FactSet.
The results sent Facebook’s shares up 20% to $31.70 in after-hours trading.
Advertising revenue rose 61% from a year earlier to $1.6 billion, accounting for 88% of Facebook’s total revenue. Mobile ad revenue represented about 41% of all advertising revenue.
The company said it averaged 699 million daily active users in June, up 27% from June 2012. Monthly active users were 1.15 billion as of June 30, up 21% year-over-year.
Mobile monthly active users were 819 million, up 51%. Mobile daily users were 469 million on average for June.
“We’ve made good progress growing our community, deepening engagement and delivering strong financial results, especially on mobile,” said Mark Zuckerberg, Facebook’s founder and chief executive. “The work we’ve done to make mobile the best Facebook experience is showing good results and provides us with a solid foundation for the future.”
In a round-up of recent business highlights, Facebook said it recently surpassed 1 million active advertisers on Facebook, driven by “significant growth in local businesses.” After introducing video for Instagram, it saw 5 million videos uploaded in the first 24 hours. It also recently launched products including Verified Pages, hashtags and embedded posts.
Facebook is scheduled to conduct an earnings call for analysts at 2 p.m. PDT.