Facebook is up more than 21 percent in after-hours trading thanks to a solid earnings report. The company notched $1.81 billion in revenue and earnings per share of 19 cents. That bested Wall Street expectations of $1.62 billion and 14 cents per share.

Its daily active users, another important benchmark for the social network's health, was up 27 percent to 699 million. It had 1.15 billion monthly active users.

The company struggled around the time of its IPO as its users made the transition from desktop to mobile. This quarter, mobile revenue made up 41 percent of Facebook's total, a strong sign for the company and a big jump from around 30 percent last quarter.

"They’re monetizing it better and better and better," said Michael Pachter, an analyst at Wedbush Securities, of the social network's mobile advertising efforts. "They’re making progress -- and dramatic progress."

Facebook now has over 100 million users of its feature phone app, which is popular among consumers in the developing world. While this isn't a big source of revenue, it does represent the markets where Facebook has the most potential for growth.

"We’ve made good progress growing our community, deepening engagement and delivering strong financial results, especially on mobile," CEO Mark Zuckerberg said in a statement. "The work we’ve done to make mobile the best Facebook experience is showing good results and provides us with a solid foundation for the future."

There has been some speculation that Facebook has been losing mindshare among teens. On the earnings call, Zuckerberg denied this, saying that, "Based on the best data available, I believe we have fully penetrated the teen market in America."

Chief Operating Officer Sheryl Sandberg said that the company has made big strides in attracting smaller, local advertisers. The social network reportedits first quarter with over 1 million active advertisers on the platform.