Snap shares soar as user growth, revenue beat

Spectacles

Snap, which makes the Snapchat photo-messaging app, said fourth-quarter sales jumped 72 percent to $285.7 million, beating the $252.8 million average projection of analysts, according to data compiled by Bloomberg.

The results mark a rare win for Snap, whose first year as a public company has been hobbled by stagnant user growth and management departures, including the loss of its heads of product and engineering.

Daily active users rose 18 percent from a year earlier, reversing a trend of slowing growth.

"Our work during 2017 is proof that we aren't afraid to make big changes for the long-term success of our business", Evan Spiegel, the cofounder and CEO of Snap, said in a statement.

Shares traded at $17.73 after the bell, up 26 percent after trading even higher earlier.

Snap is working on redesigning its app to separate what friends share and what media organizations publish in an attempt to appeal to a broader range of users. That means Snap is trading right around the price that it sold for during its IPO of $17.

Snapchat has finally made investor concerns disappear.

If you want to know how a company like Snap can lose nearly $3.5 billion in a year, look no further than stock rewards to engineers.

Snap's net loss of 13 cents a share also was more positive by 3 cents a share than analysts' expectations of a loss of 16 cents a share, according to a Thomson Reuters consensus estimate. Earlier, they rose 1.5 percent to close at $14.06 in NY. Snap still lost $350 million in just three months, although that's an improvement compared to the $440 million it lost in the quarter before. "They have a long way to go, but this was a good first step".

"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.

The company expects its year-over-year revenue growth rate to moderate in the current quarter compared with the fourth quarter, Chief Financial Officer Drew Vollero said.

Related News:



Most liked

First flu-related child death reported in Maryland this year
In Arkansas, as of Monday morning, the number of flu related deaths has increased to 122, up from the 94 deaths reported last week.

Wenger reveals why Arsenal made Ozil second highest-paid EPL player
Although the Gunners have not yet confirmed Ozil's contract renewal but Elneny has revealed that the German star has already extended his contract.

Prolonged NAFTA Talks Could Slow Economy Growth
But on the main US proposals, including a bid to restructure auto industry supply chains, they remain far apart. Trade officials agreed on a new treaty's anti-corruption provisions and narrowed the gaps over customs issues.

United Nations accuses North Korea of violating sanctions
According to Reuters , the authors of the report investigated North Korean arms shipments with Syria and Myanmar. Secretary of State Rex Tillerson said violations of maritime operations involving North Korea are a problem.

Arsene Wenger: The quality of Pierre-Emerick Aubameyang's movement is impressive
The second goal came from a corner after Aubameyang had his first shot on target which was parried behind by the keeper. Fluent, pacy, technical quality, agile movement, very mobile and good finishing.

Robert Mueller is 'properly operating' in probe, Justice Department says
Sessions did not elaborate, but the Justice Department's inspector general is tasked with investigating employee misconduct. Rosenstein "appeared surprised" by Trump's question and "awkwardly" answered, "Of course, we're all on your team, Mr.

Apple questioned by United States agencies about slowing iPhones

Justice Department Moves to Dismiss Menendez Indictment
Defense lawyers argued that Menendez and Melgen were longtime friends with no corrupt intent to commit a federal crime. A lawyer for Menendez said the senator was "pleased and grateful" about the decision.

Boeing's defense business reports lower sales, higher profit in 2017
After $1.66 actual EPS reported by Phillips 66 for the previous quarter, Wall Street now forecasts -23.49% negative EPS growth. The stock of The Boeing Company (NYSE:BA) has "Sector Perform" rating given on Thursday, January 28 by RBC Capital Markets.

Putin, Erdogan Underline Importance of Agreements Reached at Sochi Syria Congress
Two-thirds will be chosen from supporters of Assad's government and one-third from the opposition. Turkey was also said to be bringing representatives of some Syrian armed groups.

Ryu and Sakura Will Kick Ass and Take Names in Monster Hunter
Those that pre-ordered the game will be getting some special bonuses like the Origin Set Armor and the Fair Wind Charm. This is a new record high in first week sales for a PlayStation 4 game, and is also just for physical sales.

Michigan State legend Magic Johnson calls for firings amid scandal
It is naive to trust that the university will hold itself accountable at a time when it has so much to lose. The board has suggested a change in strategy, but she said she has yet to see evidence of that.

Hot Trending Stocks: Twenty-First Century Fox, Inc. (FOXA), Celgene Corporation (CELG)
A number of other institutional investors and hedge funds have also recently bought and sold shares of FOX. (NYSE:IT). Over the same time span, the stock marked US$37.97 as its best level and the lowest price reached was US$24.3.

GLI Finance (GLIF) Rating Reiterated by Liberum Capital
Cibc Mkts holds 0% or 5,327 shares. 153.19 million shares or 1.72% more from 150.60 million shares in 2017Q2 were reported. The stock of Royal Caribbean Cruises Ltd. (NYSE:RCL) has "Buy" rating given on Tuesday, August 4 by Argus Research.

Dow tumbles 362 points as health care stocks drag on Wall Street
Declining issues outnumbered advancing ones on the NYSE by a 4.50-to-1 ratio; on Nasdaq, a 3.15-to-1 ratio favored decliners. The Dow was off 209 points, or 0.8%, while stocks overall saw additional pressure from a selloff by health care shares.