Menlo Park-based social-media company Facebook reported revenues of $1.18 billion in its first quarterly earnings report Thursday, a gain of 32 percent over the year-ago period.

However, the company still reported a net loss of $157 million during the quarter ended June 30, largely due to $1.3 billion in stock-based compensation expenses tied to Facebook's initial public offering of stock in May.

Facebook shares have traded substantially below the $38 IPO price, and closed Thursday at $26.84.

Advertising, which accounts for 84 percent of Facebook's revenue, totaled $992 million during the second quarter, up 28 percent from the year-ago number.

The company also reported gains in "mobile active users" and "daily active users," up 67 percent to 543 million, and 32 percent to 552 million, respectively, during the quarter.

"Our goal is to help every person stay connected and every product they use be a great social experience," Facebook founder and CEO Mark Zuckerberg said in the report. "That's why we're so focused on investing in our priorities of mobile, platform and social ads to help people have these experiences with their friends."

— Dean McArdle

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