Shares in Snap jump as revenues and user numbers beat expectations

Shares in Snap jump as revenues and user numbers beat expectations

Shares in Snap jump as revenues and user numbers beat expectations

Shares were trading up more than 25 percent after hours. Snap added almost 9 million daily active users in the last quarter, the most since the third quarter of 2016, pumping its daily user base to 187 million. Snap reported a net loss of $350 million for the quarter.

The company reported fourth-quarter results as Wall Street was looking for signs of life from an app that struggled at points a year ago. "We redesigned the Snapchat application, transitioned our Snap Ad business to an auction model, and made changes to our team to improve productivity and collaboration". Wall Street expected Snap to add about 6 million daily users during the quarter. Wall Street, however, is looking for the company to report revenue of $253 million, up 52% from Q4 2016. Vetr raised Snap from a "strong sell" rating to a "hold" rating and set a $16.13 target price for the company in a report on Friday, October 13th.

Snap said the average revenue per user rose 46 per cent from a year ago to US$1.53, offering some hope for reaching profitability. Ever since the company behind Snapchat publicly unveiled paperwork with plans for a $20 billion IPO nearly exactly a year ago, concerns have surfaced about Snap's long-term viability.

During last quarter's earnings call, CEO Evan Spiegel said the company was redesigning Snapchat in response to complaints that its interface was too complicated. It's a significant boost in users since the third quarter of 2017, when Snapchat added just 4.5 million DAUs. A fresh design followed, and since then we've also heard that Stories will soon be available on the web.

Snap Inc.'s Share Price Soars After Revenue Beats Expectations

Facebook recorded stock-based compensation of $1.6 billion the year it went public, but generated over $5 billion in sales.

More recently, Snap released a new in-app merchandise store as it continues its experiments to see what users are willing to pay for.

Investors are very relieved about Snap "s latest earnings report: The Snapchat maker not only beat analysts" revenue expectations for Q4 of 2017, but also posted the biggest net user addition in over a year. Its net loss was about $350 million for the quarter ended December 31.

Actor was best known for playing Frasier's dad
Mahoney's portrayal of Martin earned him two Emmy nominations, two Golden Globe nominations and a Screen Actors Guild award. Variety reports that Mahoney died on Sunday while in hospice care in Chicago.

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