Facebook’s quarterly earnings announcement Wednesday included good news and bad news for investors. The social media company’s subscribers and advertising revenue on mobile devices increased, but profits during the last quarter did not meet projections:

Revenue increased to $1.46 billion, a 38 percent jump from the same period last year but lower than the 40 percent increase the company reported in the previous quarter. The firm reported net income of $219 million, lower than the $308 million analysts had expected. . .

The company said that it now has 1.11 billion monthly active users, an increase of 23 percent over the previous quarter. Mobile user growth was higher — up 54 percent with 751 million mobile monthly active users. . .

Ad revenue overall grew 43 percent from the same period last year, with mobile ads expanding enough to now account for about 30 percent of the company’s $1.25 billion in ad dollars, compared with 23 percent in the previous quarter. (Read the rest of the article here.)

The expansion on mobile devices the first quarter accompanied the release of Facebook Home, software that converts a phone’s interface into an extension of Facebook. The application received tepid reviews from users and critics, however. Hayley Tsukayama writes:

While the app makes using Facebook much easier, it probably won’t appeal to those who aren’t heavy Facebookers. It takes a few more swipes to get to your apps, and letting Facebook become the center of your phone means that Android users lose a lot of customization. There’s also privacy to consider: By default, Facebook does not require a password to comment or like items, meaning users will have to change those settings on their own if they’re uncomfortable with that.

Facebook‘s founder, Mark Zuckerberg, also has been criticized recently for his political involvement, as a group he is supporting has adopted controversial tactics in pursuit of more liberal immigration laws.

(Washington Post Co. chairman and chief executive Donald E. Graham is a member of Facebook’s board of directors.)

Sign up today to receive #thecircuit, a daily roundup of the latest tech policy news from Washington and how it is shaping business, entertainment and science.