The company’s net profit had declined in the two previous quarters, largely because costs increased as it invested in new areas like virtual reality.
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The mobile advertising revenue represents a 73 percent uptick from last year’s third quarter.
Revenue surged to $4.50 billion in the third quarter, up from $3.20 billion a year earlier and beating expectations of revenue of $4.37 billion, according to Thomson Reuters I/B/E/S.
The world’s biggest social network also said the number of monthly active users hit 1.55 billion, up 14 per cent from a year earlier.
1,01 billion daily average users were registered for the month of September 2015, indicating a year on year increase of 17%.
Per usual, CEO Mark Zuckerberg offered little insight in the earnings release: “We had a good quarter and got a lot done”, he says.
Whatever path the company takes shareholders are willing to back it, with shares in Facebook jumping 3.76% to $107.85 in after hours trading. UK’s Business Insider writes that, at about 107.7, Facebook’s stock is at a new all-time high and shares are up roughly 25 per cent since mid-August.
Chief operating officer Sheryl Sandberg said: ‘We think we have the best mobile ad product in the market. Companies turn to Facebook to target specific groups of people and deliver ads to their news feed, especially on mobile phones.
Mobile MAUs – Mobile MAUs were 1.39 billion as of 30 September, 2015, an increase of 23 per cent YoY.
Currently, Facebook averages a whopping one billion users each day.
Facebook said ads on mobile devices accounted for 78% of advertising revenue, up from 66% a year ago.
Facebook reported a 11% jump in profit for the third quarter as it witnessed a spike in revenue from ad sales.
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Shyam Patil of Susquehanna Financial Group said, “I think the investors would like the company to continue to invest given that the opportunity is pretty large”.
