Facebook Shares Soar After It Soundly Beats Q3 Earnings Estimates

The stock’s up 14%+ in initial post-market trading after the social media company surprised the Street with its basic Q3 financials — revenues and profits — and with strong results in mobile use and ad sales. Facebook reported Q3 net income of $425M, up from last year’s loss of $59M, on revenues of $2.0B, +59.8%. The top line beat expectations for $1.9B. And adjusted net income at 25 cents a share exceeded forecasts for 19 cents. Facebook says that it had an average of 728M daily active users in September, up 25% vs last year– and 1.19B monthly active users, +18%. Ad revenues rose 66% to $1.8B. Many investors are still eager to see how Facebook does on smartphones and tablets, where there’s little screen space for ads. They’ll likely be impressed by the company’s revelation that mobile accounted for 49% of ad sales and that about 73% of the monthly users at the end of September accessed Facebook on a mobile device. “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 five billion people online and into the knowledge economy,” CEO Mark Zuckerberg says.

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This article was printed from https://deadline.com/2013/10/facebook-shares-soar-after-it-soundly-beats-q3-earnings-estimates-623642/