Facebook posts massive 60% increase in revenue; shares surge 17%

Facebook Inc. had another impressive quarter, reporting strong profit and revenue that soundly beat Wall Street expectations.

The world’s largest social network said it earned $425 million, or 17 cents a share, compared with a $59-million loss a year earlier.

Revenue for the three months that ended Sept. 30 totaled $2.1 billion, up 60% from $1.3 billion in the same quarter last year. Analysts had expected the company to report revenue of $1.91 billion.

Revenue from advertising was $1.8 billion, up 66% year over year. Mobile ad revenue accounted for 49% of the company’s advertising revenue, up from 14% in the third quarter of last year.

Facebook reported its third-quarter earnings after the markets closed. Its shares quickly spiked 17% in after-hours trading and were up 10% at 1:30 p.m. Pacific time.

During regular trading, shares fell 39 cents, or less than 1%, to $49.01.

“The strong results we achieved this quarter show that we’re prepared for the next phase of our company, as we work to bring the next 5 billion people online and into the knowledge economy,” Facebook founder and Chief Executive Mark Zuckerberg said in a statement.

Facebook also saw big increases in user growth and engagement.

It posted monthly average users of 1.19 billion as of Sept. 30, up 18% year over year. Daily average users was 728 million on average for September, up 25%.

Mobile monthly average users grew 45% year over year to 874 million.

The Menlo Park, Calif., company will hold an earnings call wtih analysts at 2 p.m. Pacific.

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