Facebook Net Up 6.8% Amid Growth in Mobile

Facebook Inc.'s (FB) first-quarter earnings grew 6.8% as the world's largest social network continued to push further into mobile devices.

The Menlo Park, Calif., company has made progress in its major effort to improve its presence in the mobile space. Last month, the company agreed to buy startup Parse, which helps companies build mobile applications, in a deal valued at about $85 million.

Also, recent quarters have shown improved mobile-ad revenue and mobile-user numbers. While those mobile metrics are expected to strengthening, Facebook still contends with high expectations from Wall Street, as its stock price has generally flattened out in recent months and is still well below last May's initial public offering price of $38.

The core advertising business posted 43% higher revenue at $1.25 billion, with mobile taking up about 30%--up from 23% in the fourth quarter.

Revenue from payments and other fees was $213 million. Facebook earns a percentage of the money paid by users for virtual goods in games on the site.

Monthly active users grew 23% from a year ago to 1.11 billion. Mobile monthly active users were 751 million, up 54%. During the fourth quarter, the company had 1.06 billion monthly visitors and 680 million monthly active mobile users.

Overall, Facebook posted a profit of $219 million, up from a year-earlier profit of $205 million. On a per-share basis, earnings were flat at nine cents. Excluding stock-based compensation and other items, earnings were 12 cents a share, also flat from a year earlier.

Revenue was $1.46 billion, up 38% from a year ago.

Analysts polled by Thomson Reuters expected adjusted earnings of 13 cents a share and revenue of $1.44 billion.

Shares closed Wednesday at $27.43 and were down 1.9% after hours. The stock is up 3% so far this year.

Write to Ben Fox Rubin at [e-mail]

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