Economy

Snapchat shares skyrocket on first earnings beat with revived user growth

Snapchat shares skyrocket on first earnings beat with revived user growth”

Snapchat has a reputation.

That narrative changed on Tuesday after Snap Inc. scored a massive beat on its quarterly earnings report, recapping revenue and user growth 2017. The company's revenue for the quarter was up 62.2% on a year-over-year basis. The company brought in $285.7 million, beating expectations of $252.8 million. Snapchat said it added 9 million daily users in the fourth quarter, its largest growth spurt since going public past year. He also writes at length about the Snapchat redesign. Yes, there's a Streaks hat.

"Our business really came together towards the end of a year ago", said Evan Spiegel, Snap's CEO, in a statement.

"We executed well on our 2017 plan to improve quality, performance, and automation, which removed friction from our advertising business and improved our application for the Snapchat community", Spiegel said in remarks prepared for a conference call with analysts. It needs user growth to drive revenue and better ad products to rake in the profits. Notably, though the bottom line came in slightly better than expected, the Q3 losses more than tripled, coming in at $443.2 million.

And yet, Snap is soaring.

Investors were snapping up shares in after-hours trading, with Snap's stock rocketing 25 percent to about $17.60 a share - coming in above its IPO price from last March.

Of course, not every high number is good.

BTC Capital Management Inc. raised its stake in shares of Snap Inc (NYSE:SNAP) by 5.5% in the fourth quarter, according to its most recent filing with the Securities & Exchange Commission. Seventeen investment analysts have rated the stock with a sell rating, nineteen have given a hold rating, eleven have assigned a buy rating and one has given a strong buy rating to the company's stock. The retention rate of new Snapchat users on Android increased by almost 20 percent compared to the year prior, according to prepared remarks.



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