Facebook's shares had closed at $19.50 -- a little over half of its $38 IPO price in May -- on the Nasdaq exchange on Tuesday, before Facebook released its quarterly results, but rose in after-hours trading after the company .

During the nine months ended Sept. 30, 2012, Facebook also completed other business acquisitions for a total consideration of $87 million. It did not provide details. It also acquired $633 million of patents and other intellectual property rights. The was $550 million in cash to Microsoft over patents it had recently acquired from AOL.

Instagram is expected to enhance Facebook's photos product offerings and to enable users to "increase their levels of mobile engagement and photo sharing," Facebook said in the filing.

The IDG News Service