Facebook Profit Soars – Update

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(RTTNews.com) – Facebook Inc. ( FB ), Wednesday reported a surge in third-quarter profit, as the social networking giant’s top line continues to soar driven by mobile ad revenues.

Menlo Park, California-based Facebook’s third-quarter profit surged to $4.71 billion or $1.59 per share from $2.63 billion or $0.90 per share last year.

On average, 36 badysts polled by Thomson Reuters estimated earnings of $1.28 per share for the quarter. Analysts’ estimates typically exclude one-time items.

Revenues for the quarter surged 47 percent to $10.33 billion from $7.01 billion last year. Analysts had a consensus revenue estimate of $9.84 billion for the quarter.

Daily active users rose 16 percent to 1.37 billion on average for September, while monthly active users increased 16 percent to 2.07 billion.

Revenues of Facebook, the world’s most popular social networking site, continues to surge every quarter as companies and other firms continue to spend heavily to advertise on the social network site.

Mobile advertising revenues continue to be dominant contributor to ad revenues as it represented 88 percent of advertising revenue for the quarter, up from 84 percent last year. Total advertising revenues surged 49 percent to $$10.14 billion.

Total costs and expenses climbed to $5.21 billion, as Facebook increased its spending on research and development as well as on marketing.

FB closed Wednesday’s trading at $182.66, up $2.60 or 1.44%, on the Nasdaq. The stock further gained $2.25 or 1.16% in the after-hours trading.

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