SAN FRANCISCO (Reuters) – Facebook Inc posted a 32 percent jump in third-quarter revenue to $1.26 billion, as the company reignited advertising growth with the help of larger-than-expected gains in mobile.

The company’s shares leapt 9 percent to $21.22 in after-hours trading on Tuesday.

Advertising revenue increased 36 percent year-on-year to $1.09 billion, while revenue from its payments and other businesses increased just 13 percent to $176 million.

Mobile revenue made up 14 percent of total advertising sales, which analysts said came in above their expectations.

“Advertising revenue from mobile was the number that really stood out,” said Sterne, Agee & Leach analyst Arvind Bhatia. “They are saying mobile ad revenue was 14 percent of total ad revenue. That would be about $140 million and I was expecting $40 or $50 million from this.”

Mobile advertising has been among the key investor concerns hanging over Facebook, the world’s No.1 online social network with more than 1 billion users. As consumers increasingly access the social network with their smartphones, Facebook has struggled to transition its advertising business to mobile devices.

“We’re really focused on accelerating the adoption of ads into mobile so we have been introducing more ads into the feed of different types,” Facebook Chief Operating Officer Sheryl Sandberg told Reuters in an interview on Tuesday.

Third-quarter mobile revenue marked a big jump from the second quarter, when Facebook said that it was generating more than $1 million a day from the new class of ads, which appear in users’ newsfeeds. Facebook said that roughly half of that revenue was from mobile ads, suggesting that mobile advertising revenue totaled $45 million in the second quarter.

Facebook said it crossed the 1 billion threshold for monthly active users as of September 30, of which 604 million were mobile users, a gain of 61 percent from a year earlier.

The world’s No.1 online social network company posted a net loss of $59 million, or 2 cents a share, in the three months ended September 30. It had a profit of $227 million or 10 cents a share a year earlier.

Excluding certain items, Facebook said it earned 12 cents a share, a penny higher than the average analyst expectation.

Its third-quarter revenue surpassed the average analyst expectation of $1.23 billion, according to Thomson Reuters I/B/E/S.

“They beat on the top line. They are talking about 60 percent of users on mobile. They are monetizing this OK,” said Wedbush Securities analyst Michael Pachter.

“Fourteen percent of total ad revenue is not chump change and some people were talking like it was zero. It’s not bad monetization and a lot better than expected,” he said.

(Reporting by Alexei Oreskovic; Editing by Phil Berlowitz)