Facebook is fighting to restore the luster it lost after a botched Nasdaq IPO and the world’s largest social network moved closer to realize that rebound on Thursday after posting Q2 revenues of $1.18 billion.

Facebook beat analyst expectations thanks to a 28 percent increase in advertising over the same quarter of 2011. Facebook revenue was up to $992 milion.

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As expected the social network posted a $743 million loss for the quarter, compared to a $407 million profit the year prior. Facebook’s loss comes on the heels of share-based compensation payments and payroll tax paid following the company’s initial public offering.

Speaking after the company’s financials were revealed Facebook CEO Mark Zuckerberg said:

“Our goal is to help every person stay connected and every product they use be a great social experience. 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.”

Facebook revealed in its financials a user base of more than 955 million monthly active users (MAUs), an increase of 29 percent year-over-year. Facebook also reported an increase of 32 percent for daily active users, a number that now sites at 552 million.

Mobile active users year-over-year increased by 67 percent to nearly 550 millino.

While expectations were largely met or exceeded the social network was unable to capitalize on its successes as after-hour trading saw the company’s stock value fall by 8.5 percent.

Facebook will try to beat expectations once again in Q3 2012 as the company completely redesigns its mobile platform for faster and more robust use.

On Thursday Facebook also announced that is has added 110 million daily active mobile users since the start of Q1 2012.