Facebook's mobile advertising business enjoyed a significant growth, helping the company's revenue expand 40 percent to $1.585 billion.

Facebook said net income in the fourth quarter was $64 million, compared to $302 million in the year-ago period.

Facebook has ramped up its online advertising services in recent months. The company has rolled out a wide variety of new services in recent months as the company seeks to stay ahead in the Web market and to convince investors that it can turn its audience of more than 1 billion users into a sustainable business.

Facebook CEo Mark Zuckerberg said that recently introduced products such as Gifts, which allows Facebook users to purchase retail goods for their friends, as well as its new social search tool could become important businesses in the future. But in the near term he said that Facebook's advertising efforts will be the core of its business.

Revenue from advertising was $1.33 billion, representing 84% of total revenue and a 41% increase from the same quarter last year. Excluding the impact of year-over-year changes in foreign exchange rates, advertising revenue would have increased by 43%.

Facebook's overall fourth-quarter revenue was $1.585 billion, versus $1.131 billion in the year-ago period.

The number of monthly active users on the social network reached 1.06 billion at the end of last year, with 618 million daily active users, Facebook said. Much of that growth again came from emerging markets like Asia, rather than the United States or Europe.