Despite $US59 million quarterly loss Facebook results exceed forecasts as mobile ads make money, shares rally

Facebook managed to beat analysts’ forecasts in its third-quarter results, with mobile revenue in the three months to September 30 now accounting for 14% of the company’s total advertising sales.

The strong growth in mobile advertising sales helped the company grow its total advertising revenue by 36% year-on-year to $US1.09 billion.

The company reported overall revenue growth of 32% during the quarter to $US1.26 billion, including a 13% growth in payments and non-advertising business revenue to $US176 million, surpassing analysts’ forecasts.

Overall, however, the company reported a quarterly net loss of $US59 million, compared with net income of $US227 million a year ago.

The market reacted positively to the news, with The Telegraph reporting the company’s shares rose 9% in after-hours trading following the results.