Facebook investors hoping the company would find a way to turn its massive collection of users into dollars got more evidence of that happening Wednesday.
Shares of Facebook soared more than 10% after hours when quarterly results bested expectations. The No. 1 social networking company reported quarterly profit of $333 million, or 13 cents a share, which was a dramatic reversal from the $0.08 the company lost in the same year-ago period.
But more importantly, after adjusting for one-time and special charges, the company earned an adjusted $0.19 a share, which easily topped the average analyst's expectation of a profit of $0.14. Shares jumped 14.7% to $30.41 in afterhours trading.
Investors paid particular attention to any signs that Facebook is making progress moving into the lucrative mobile market. The company reported 819 million monthly mobile active users, up 51% from the same period last year. Mobile advertising amounted to 41% of total ad revenue. The number of monthly active users of 1.15 billion, up 21% from the year-ago period. The company's revenue of $1.8 billion topped expectations for $1.62 billion in revenue.
Expectations for the company have been very lukewarm since it went public more than a year ago. Shares of the company gained $0.35 a share to $26.48 Wednesday, but are down 0.5% this year, essentially missing out on a powerful rally on Wall Street. The broad Standard & Poor's 500 index is up more than 18% this year and bumping up against record highs.