Snap Inc (NYSE:SNAP) reported impressive fourth-quarter results despite being unable to post a profit during the period.
The social media platform unveiled adjusted earnings at a loss of 13 cents per share, narrower than the Wall Street consensus estimate of 16 cents per share, according to Thomson Reuters. The figure marks the company’s first earnings beat since its IPO.
The company’s net losses were $349.98 million, or 28 cents per share, compared to net losses of $169.95 million in the year-ago quarter. Analysts were calling for net losses of $409 million.
Snap’s revenue was well above analysts’ outlook as the company raked in $285.7 million to close out its fiscal 2017, ahead of the $252.9 million that was expected, according to Thomson Reuters. The figure grew 72% year-over-year.
The company’s average revenue per user (ARPU) soared 46% compared to the year-ago quarter, coming in at $1.53 per share. Analysts were calling for ARPU of $1.36 per share, according to FactSet and StreetAccount.
More people have started using Snapchat as well as the company reported global daily active users (DAUs) of 187 million by the end of the quarter, ahead of the Wall Street consensus estimate of 184.2 million, per FactSet and Street Account.
Snap may not be profitable yet but the company managed to reduce its cash burn to $225 million, a 49% fall year-over-year.
SNAP stock soared more than 25% on the company’s earnings report Tuesday, before settling down to a 22.8% improvement late in the day.
