Facebook (NASDAQ:FB) topped Wall Street expectations for the fourth quarter, as the social media company lifted mobile ad revenue and added more users.
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The social media company on Wednesday reported net income of $701 million, a 34% increase over the year-ago period’s $523 million. Per-share earnings came in at 25 cents versus 20 cents.
Excluding one-time items, Facebook booked adjusted earnings of 54 cents a share, compared to 32 cents a share last year. Analysts were looking for a smaller adjusted profit of 48 cents a share.
Revenue soared 49% to $3.85 billion, surpassing the consensus estimate of $3.77 billion.
Shares ticked 16 cents lower to $76.08 in after-hours trading.
Facebook, which acquired messaging app WhatsApp for $19 billion last year, said it had 1.39 billion monthly active users as of Dec. 31, 2014. That reflects a 13% gain.
Facebook considers daily active users to be the most engaged. In December, daily active users rose 18% to 890 million on average.
For Facebook’s mobile services, daily and monthly active users were up 34% and 25%, respectively.
Mobile advertising represented about 69% of Facebook’s fourth-quarter ad revenue. A year earlier, ads on mobile devices accounted for 53%.
Costs and expenses in the final three months of 2014 totaled $2.72 billion, up 87% year-over-year. Facebook’s operating margin shrank to 29% from 44%. On an adjusted basis, its margin held steady at 58%.
Rival social media website Twitter (NYSE:TWTR) is scheduled to report earnings next week.