Oh Snap! Shares Soar as Snapchat Reports 9 Million More Daily Users and an Ad Surge
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Snap shares soared by about 20 percent Tuesday on the strength of its unexpectedly upbeat quarterly report. Snapchat said it added 9 million daily users in the fourth quarter, its largest growth spurt since going public last year.
The company reported fourth-quarter results as Wall Street was looking for signs of life from an app that struggled at points last year. Now, it has 187 million daily active users, up from 158 million a year ago. Also, its $286 million in revenue beat analyst expectations by more than $30 million, a turnaround form the third-quarter when Snap fell short of Wall Street’s forecasts.
Snapchat closed the year with $825 million in revenue, which was double the revenue of 2016. Even though the quarterly report provided a lift to Snap’s stock, to the tune of more than 20 percent in after-hours trading, the company still operates for a loss and has yet to turn a profit, depsite the revenue bump. It had a net loss of $3.5 billion last year.
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