Facebook's first quarter earnings were "amazing" and demonstrated that the company has finally figured out their mobile strategy, CNBC's Jim Cramer said Thursday.
"This was the best conference call of the quarter. I am not kidding. This was an amazing quarter," Cramer said on "Squawk on the Street."
(Read More: Facebook Revenue Beats, but Earnings Miss)
Unlike many other companies that are using their cash for dividends or buybacks, Cramer is encouraged that Facebook is actually investing in its business, with non-GAAP expenses up 56 percent to $895 million. "You want to hear a company investing a huge amount," he said. "They actually have something worth investing in. We don't want them to buy back stock, we don't want a dividend. We want growth. This company has it."
With 100 million new users, "this put the end to the 'young people don't like Facebook anymore story' and I thought that was fabulous," Cramer said.
(Related: Mobile Will Push Facebook to $37: Analyst)
When Facebook went public last year, the company had no revenue from mobile advertising, but now it represents about 30 percent of advertising revenue, up from 23 percent of ad revenue in the fourth quarter.
"I thought this was amazing. This is a mobile play. They have figured it out," Cramer said. "This is a rather amazing engagement story."
(Counterpoint: Facebook Mobile 'Failing': Porter Bibb)
"They are just doing a great job. It is integral to a lot of companies' ad strategies. If I am an American company and I'm not advertising with Facebook, I'm an idiot," Cramer said.
Facebook said it is offering advertisers a cheap way to reach customers. This is a major component of small businesses adopting the Web, Cramer said, pointing to companies like Yelp reporting good first quarter results.
However, on the Facebook conference call, CEO Mark Zuckerberg outed one area of weakness in the space: Zynga. In the call, he said the company "hasn't been as awesome" as everyone hoped.
Jim Cramer's charitable trust owns shares of Facebook.