Millennium Post

Facebook stuns critics, narrows its Q3 loss as revenues gain

Facebook has reported a strong rise in quarterly advertising revenues and said its take from mobile users was gaining as it beat analysts’ earnings forecasts. The world’s leading social network, with more than a billion users, impressed weary investors in its second-ever quarterly report as a public company, sending its shares climbing more than eight percent in after-hours trade to
around $21.14.

The company booked a second consecutive quarterly loss, of $59 million in the third quarter, weighed down by accounting rules requiring it to set aside reserves for stock compensation.

Excluding those costs, net earnings were a positive $311 million and earnings per share hit 12 cents, one cent above analyst expectations. Revenues totaled $1.26 billion, up 32 per cent from a year earlier and 6.7 per cent from the second quarter. But, after months of doubts over whether the company could make money from its massive network and user database, the company touted its surge in advertising income.

Advertising brought in $1.1 billion in the third quarter, up 36 per cent from a year earlier and 11 per cent from the prior quarter. Facebook said 14 per cent of the advertising take came from the mobile sector.   
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