Facebook Inc. doubled its mobile advertising from the previous quarter as the world’s No. 1 social network expanded its business aggressively onto handheld devices.
But the growth trailed some of Wall Street’s most aggressive estimates.
Extending its reach on mobile devices is crucial as more and more of its 1 billion-plus users begin to access its network via smartphones and tablets.
The company’s overall advertising business grew at its fastest clip since before its May 2012 initial public offering, helping the company’s revenue expand 40 percent and surpass Wall Street targets.
Shares of Facebook were flat at $31.24 in after-hours trading on Wednesday, regaining ground after falling more than 8 percent immediately after the numbers were released.
“Overall solid quarter but maybe high expectations going into the quarter,” said Aaron Kessler, an analyst with Raymond James.
Facebook said its mobile business accounted for 23 percent of total ad revenue, compared to 14 percent in the third quarter.