Mobile ad network Millennial Media is continuing its slow march to profitability. The company reported $47.4 million revenue for Q3 2012 ending Sept. 30, up 88 percent year-over-year, and 20.3 percent over Q2’s revenues of $39.4 million. The company’s net loss for the quarter was $1.8 million, a small improvement over Q2’s $2.2 million.

Although the company has narrowed its losses in every quarter since it went public in March, the company is still losing more money now then it did a year ago. In the third quarter of 2011, Millennial reported a loss of just $0.2 million. That said, Millennial’s net loss per share declined year-over-year, dropping from $0.09 in Q3 2011 to $0.02 for the company’s most recent quarter. Millennial also improved its gross margin in Q3, raising it slightly to 40.9 percent, up from Q2’s 39.7 percent.

The company also reported that as of Sept. 30, 380 million monthly unique users see its ads, 150 million of which are in the U.S. That’s up slightly over Q2, when Millennial reported a global reach of 350 million unique users, 140 million of which were in the U.S. There are now 38,000 apps showing Millennial’s ads, an increase of 8.5 percent from the second quarter, when the company had a stable of 35,000 apps.

Millennial is predicting its fourth quarter revenues will fall somewhere between $61.5 million and $63 million, and a non-GAAP (generally accepted accounting principles) income of approximately $3.0 to $3.5 million. For reference, in this quarter Millennial reported a non-GAAP EBITDA (earnings before interest, taxes, depreciation, amortization and non-cash stock-based compensation) of $2.1 million.

The company’s shares fell on the news, dropping almost four percent to $15.20 — still above Millennial’s IPO price of $13, but below the company’s peak first-day trading value of $25 per share.