Snap, the company behind popular multimedia messaging app Snapchat, has seen shares jump after beating Wall Street estimates on users and revenue.
The app managed to stem user declines in the fourth quarter of 2018, remaining at 186m for the second consecutive quarter, though still 1m down on a year ago. Analysts had predicted that Snapchat’s user base would fall again to 185m.
Meanwhile, revenue for the final quarter jumped 36 per cent to $389.8m – once again beating analyst estimates. Despite remaining loss-making, the company’s losses fell to $192m compared to the loss of $350m suffered in Q4 2017.
“We ended the year with user engagement stabilising and have started rolling out the new version of our Android application to a small percentage of our community,” said Evan Spiegel, Snap CEO. “We are substantially closer to achieving profitability, as we have maintained a relatively flat cost structure across the past five quarters while growing full-year revenue 43 per cent year-over-year.”
Snap saw its shares soar by more than 20 per cent in after-hours trading. The company does still remain around 50 per cent lower than what it was priced at on its stock market debut two years ago.