Updated from 9:07 a.m. EDT to include updated information in the fifteenth paragraph.
Despite the impressive earnings beat, shares had given up most of their after-hours gains on concerns over ad engagement and questions over teens using the service. On the earnings conference call, Chief Financial Officer David Ebersman noted teens are using the service the same but daily users in the teen demographic slid from the second to the third quarter. The Facebook executive said there's no real accurate way to measure that, but the social networking giant is working on building something internally to figure out what's going on.
Even though the comments about engagement worried investors, Facebook still reported a massive beat to third-quarter estimates, earning 25 cents a share on a non-GAAP basis and generating $2.02 billion in revenue. Mobile revenue surged to 49% of total advertising revenue, which was about $881 million. Analysts surveyed by Thomson Reuters were expecting earnings of 19 cents a share on $1.91 billion in revenue.
As of the end of September, Facebook had 1.19 billion monthly active users (MAUs), up 18% year over year, with daily active users (DAUs) up 25% during the same time frame to 728 million users. Mobile MAUs grew 45% year over year to 874 million, with 507 million of them using the service daily at the end of the quarter.