Snap Inc. Shares Jump 25% After Strong Q4 Results

Snap Inc. Shares Jump 25% After Strong Q4 Results

Snap blew past Wall Street expectations in a major way on Monday, reporting stellar user growth and revenue for the final three months of 2017. It is likely that the shares saw a huge increase on the news even though the company did not post preadjusted actual earnings, but merely beat loss expectations, there is a huge short interest in the outstanding share float. That was a marked improvement to what analysts had previously predicted-revenue around $252.9 million and a loss of 16 cents per share.

Shares in the owner of the Snapchat app's have had a poor performance since the company went public previous year amid concerns about competition from Instagram.

So, how did Snap fare during Q4? Twitter's expense of $600 million in 2013 was slightly less than its revenue, while LinkedIn had just a $30 million expense and $522 million in sales in 2011, the year it debuted on the market. Investors were pleased with the outcome and Snap stock leapt more than 22pc after the bell.

The rise in user numbers is being attributed in part to a redesign of the Snapchat app that started rolling out in November.

It is hoped that the redesign, which is still in the process of rolling out, will help the company scrape back some of the early-stage popularity that was knocked by Instagram Stories.

To use Snapchat's quietly added feature, users can tap and hold on a person or group.

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.

They expect growth to stall due to brand advertisers slashing their marketing budgets after the Christmas period - Snap, though, is forecasting continued growth after a stronger than expected fourth quarter.

The Do Not Disturb feature was quietly launched a few weeks ago, but many Snapchat users do not know about it.

"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", he said.

"This translated into annual revenues that grew 104pc from the prior year, and 8.9m daily active users added in the fourth quarter - the highest number of quarterly net adds since the third quarter of 2016".

Analysts at Raymond James predict Snap's stock-based compensation this year will be $900 million, with the number falling to $850 million in 2019.

Spiegel explained the changes to investors: "Our advertising business changed profoundly over the past year as we migrated the sale of our Snap Ads to an automated auction".

"Anybody can log on to our platform and buy advertisements".

Snap's share-price climb comes at a time when technology stocks are getting battered in the middle of stock market volatility.

"With our plans for user growth, augmented reality, and content in 2018, I have never been more excited about the future of our business". "We're going to keep up the hard work and stay focused on the big opportunities ahead".

While you will no longer receive notifications from that conversation, you'll still be able to access it, check any unread messages and Snaps and send your own too.