The stock price of Facebook Inc (NASDAQ:FB) climbed more than 12% to $60.08 per share during the extended hours trading around 6:08 P.M. in New York after the social network giant reported fourth quarter earnings that beat the estimates of Wall Street analysts.

Financial Results

During the fourth quarter of 2013, Facebook Inc (NASDAQ:FB) generated Non-GAAP net income of $780 million or GAAP net income of $523 million. Its earnings per share were $0.31 (Non-GAAP) or $0.21 (GAAP). The social network giant said its revenue rose 63%to $2.59 billion from $1.59 billion in the same period a year ago.

On Non-GAAP basis, the earnings results of Facebook Inc (NASDAQ:FB) outperformed that $0.27 earnings per share and $2.37 billion revenue consensus estimate of analysts.

In a statement, Mark Zuckerberg, CEO of Facebook Inc (NASDAQ:FB) said, “It was a great end to the year for Facebook. We’re looking forward to our next decade and to helping connect the rest of the world,” said Mark Zuckerberg, founder and CEO of Facebook Inc.

According to the social network giant, its advertising revenue increased 76% from $1.33 billion in the year-ago quarter to $2.34 billion. Its mobile advertising revenue accounts 53% of its total advertising revenue for the quarter.

Facebook Inc (NASDAQ:FB) said its income from operation increased from $523 million to $1.13 billion and its operating margin climbed from 33% to 44%. The search engine giant reported that a 37% increase in costs and expenses from $1.06 billion in the year-ago quarter to $1.45 billion. By the end of the quarter its cash and marketable securities were $11.45 billion, up from $9.63 billion last year.

The social network giant said its net income for the full year 2013 was $1.50 billion and revenue was $7.87 billion. Its revenue increased by 55% from last year.

Active Users

According to Facebook Inc (NASDAQ:FB), the number of its daily active users (DAUs) increased 22% to 757 million while its monthly active users (MAUs) rose 16% to 1.23 billion on average in December 2013.  The social network giants mobile DAUs climbed 49% to 559 million while its mobile MAUs increased 39% to 945 million.

Ads on Instagram

Sheryl Sandberg, chief operating officer of Facebook Inc (NASDAQ:FB) told the Wall Street Journal that the company will slowly expand its new video ads, and it will also deploys ads on Instagram cautiously.

“We’re going to continue to test it. We don’t expect it’s going to be a major thing in the near term,” said Sandberg. Commenting on the company’ approach to Instagram, she said, “It’s a new product. We’re excited about it. We plan on ramping up very slowly.