Facebook reported revenues of $5.1 billion for the year ending December 31, 2012 which is up from $3.7 billion one year ago. However, attempts to upgrade the company’s mobile offerings cut into net profits, which dropped from $1 billion the previous fiscal year to just $53 million in 2012.

“In 2012, we connected over a billion people and became a mobile company,” said founder and CEO Mark Zuckerberg in a statement. “We enter 2013 with good momentum and will continue to invest to achieve our mission and become a stronger, more valuable company.”

The company did say that monthly active users (MAU) were up 25 per cent year-on-year to 1.06 billion, and daily active users (DAU) rose 28 per cent to 618 million. Mobile growth was notable, increasing 58 percent to hit 680 million MAU by the end of the year and mobile DAU exceeding its web DAU for the first time ever on the Q4.

Facebook’s core advertising business posted 41 percent higher revenue at $1.33 billion, with mobile taking up a rising 23 percent. This is key, since money generated by advertising represented over 80 percent of all revenue earned.

Source: Wall Street Journal