Facebook reports record profits but shares drop as teens sign out

The world’s largest social network, Facebook, has reported a 60% increase in revenue, to $2.02bn (£1.26bn), in the third quarter.

The company reported record profits of $425m for the quarter as Facebook’s monthly active users hit 1.19 billion in September.

Facebook attributed its stellar performance to mobile revenues, which stood at around $880m this quarter compared to just $150m a year earlier.

The social network saw a 45% growth in mobile users over the past year, reaching 874 million mobile monthly active users as of 30 September 2013. These users generated 49% of Facebook advertising revenue for the quarter.

“The strong results we achieved this quarter show that we’re prepared for the next phase of our company,” said Mark Zuckerberg in a statement.

Facebook’s third Quarter 2013 Operational Highlights

Daily active users (DAUs) were 728 million on average for September 2013, an increase of 25% year-over-year.

Monthly active users (MAUs) were 1.19 billion as of September 30, 2013, an increase of 18% year-over-year.

Mobile MAUs were 874 million as of September 30, 2013, an increase of 45% year-over-year. Mobile DAUs were 507 million on average for September 2013.

After the announcement, the company’s stock soared by 18% to $57.98 (£36.16) in after-hours trading.

However, Facebook saw $18bn (£11.2bn) wiped off its share price after a finance chief David Ebersman said the social network had seen a drop in teenage users.

Shares dropped to $48.44 (£30.20), slightly below the day’s closing price of $49.01 (£30.56).

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