Shares jumped as much as 7 percent immediately after the report was released, up from its market close of $123.34 per share.
It was a positive report across the board. The company said 1.13 billion people have made the network a daily habit. And Facebook said it now has 1.71 billion monthly active users, up 20 percent from the same period last year.
That's more than the combined population of the United States and China — a market that Facebook hasn't even cracked yet.
And Facebook's growth continues in mobile, which is crucial as more people turn to their smartphones rather than their computers to use the Internet. Facebook reported it has now reached 1.57 billion mobile users and said that mobile advertising now makes up 84 percent of its total ad revenue. Facebook is also now making more off users than ever before — about $3.82 per user. In the United States and Canada, that value goes up to $14.34 per user, up from $9.30 from the same period last year.
Facebook and Google are the clear leaders in the digital advertising space, claiming more than 40 percent of the market between them, according to advertising analysis firm eMarketer. Facebook has about 11 percent of the digital ad market, up from 10 percent last year.
The dominance of these two firms in the digital advertising space was cited as one reason that Verizon acquired Yahoo earlier this week — a bid to catch up to those two giants. The earnings also stood in sharp contrast to Twitter, which reported its smallest-ever quarterly growth Tuesday.
Facebook specifically highlighted the success of video advertisements as a reason for its strong results.
"Our community and business had another good quarter," said Mark Zuckerberg, Facebook's chief executive, in a news release. "We're particularly pleased with our progress in video as we move towards a world where video is at the heart of all our services."
The company didn't share many details on how video ads have performed on their own.
But the success bodes well for Facebook's core business as the company embarks on an ambitious plan to expand its reach even further. Zuckerberg this summer outlined a five-year blueprint that includes heavy investment in virtual reality, artificial intelligence and expanded messaging services that all aim to make Facebook the go-to portal for everything online.
Analysts said Facebook is in a good position over the long term and has built a good foundation — though that doesn't rule out future hiccups as it navigates into its next era.
"We expect solid long-term growth, because Facebook should remain a leader in the growing social market," said Josh Olson, an analyst at Edward Jones. "However, this growth will likely be lumpy and could result in earnings inconsistency and stock price volatility."