Social networking giant, Facebook has recorded a better than expected growth in revenues as the company reported increasing mobile ad sales.

The world's largest social networking site said that the mobile ads represented 53 percent of its total advertising revenue during the previous three months of the year. Mobile ads presented about 49 percent of the total revenues in the third quarter. Experts have said that mobile ad sales have surpassed desktop ad sales within a year for the company.

The company said it now has 1.23 billion monthly users, out of which 945 million use the service on a smartphone or tablet. Facebook's newsfeed ads that includes paid ads in stream of news and content has allowed the company to increase revenue and its stock price in recent months. The ads are generally designed for smaller screens of tablets or smartphones. The average price per ad on Facebook has surged 92 percent in the previous year. Facebook Chief Executive Officer Mark Zuckerberg has said that the company will focus on increasing the quality and the relevance of the newsfeed ads for the users.

Shares of the social networking giant rose 12 percent to $59.98 during the after-hours trading on Wednesday.