Its mobile ad revenue helped Facebook Inc(NASDAQ:FB)’s total revenue rise 40 percent jump to $1.59 billion in the fourth quarter.
However the company’s profit fell 79 percent, as expenses mounted on new initiatives and new technologies as well as charges related to employee stocks.
Over the quarter, Facebook’s overall ad revenue rose 41% to $1.33 billion from a year ago, with mobile ads making up 23% of the total.
It may be recalled that in the third quarter its mobile revenue was $153 million, or 14% of total advertising revenue.
Founder and chief executive Mark Zuckerberg said on a conference call, “”Today there is no argument Facebook is a mobile company.”
Despite the results being more or less in line with expectations, the Street was rather lukewarm in its response as concerns over its expenditure weighed on sentiments.
Facebook’s stock initially fell around 10% in after-hours trading following its earnings report, but selling tapered, with the stock later down 3.8%, or $1.19, to $30.05. Shares had earlier closed at $31.24, up 1.5%, before the report.
The stock has risen about 16 percent so far this year.
Networking equipment vendor JDS Uniphase Corp(NASDAQ:JDSU) late Wednesday reported second quarter revenue of $429.4 million and non-GAAP profits of 18 cents a share; that topped the Street consensus at $424.2 million and 14 cents a share.
The company’s Chief Executive Tom Waechter said that operating margins had increased all three of its business segments.
“We are well-positioned for growth opportunities in 2013,” he said.
For the third quarter the company sees non-GAAP revenue of $405 million to $425 million, consistent with Street consensus at $415 million.
Shares of JDSU soared 13.7% in pre-open session on high volume. Yesterday, the stock was down over 5%.