Facebook results exceed market expectations

Facebook's fourth-quarter financial results surpassed Wall Street's expectations but the company's shares dipped lower in extended trading.

Facebook earned $64m (€47.3m) in the October-December period, down from $360m (€266.2m) a year earlier when it was still a privately held company.

Revenue rose 40% to $1.59bn (€1.17bn) from $1.13bn (€835.55bn).

Excluding special items, mainly related to stock compensation expenses, Facebook, which is based in Menlo Park, California, earned 17 cents per share in the latest quarter.

Analysts polled by FactSet expected lower adjusted earnings of 15 cents per share on revenue of $1.51bn (€1.11bn).

Facebook said it generated 23% of advertising revenue from mobile, up from 14% in the third quarter.

Facebook shares were down 4.3% to $29.91 after hours.