Snap (NYSE:SNAP) earnings were posted late in the day on Tuesday and the company’s results were stronger than what analysts were calling for in the Wall Street consensus estimate.
The social media company behind Snapchat said that for its fourth quarter of its fiscal 2018, it brought in a loss of 4 cents per share on an adjusted basis, ahead of the 7 cents per share in losses that analysts polled by Refinitiv called for. The company’s revenue reached $390 million for the period, beating the $378 million Refinitiv guidance.
Snap added that its global daily active users (DAUs) for the period reached 186 million, while its average revenue per user (ARPU) increased to $2.09. Both figures were better than the global DAUs outlook of 184.6 million and the ARPU projection of $2.05 per share, both from FactSet.
“We ended the year with user engagement stabilizing and have started rolling out the new version of our Android application to a small percentage of our community,” Snap CEO Evan Spiegel said on Tuesday in a statement.
Aaron Goldman, Chief Marketing Officer at 4C Insights, said that the social media’s performance is a result of the company’s strong advertising initiative on Snapchat. “Stories are propelling advertising growth throughout the industry, and as the platform that started the Stories trend, Snap continues to see growing advertiser adoption.”
SNAP stock is skyrocketing close to 18.5% after the bell following the company’s stellar fourth quarter. Shares had increased 1.7% in anticipation of the company’s quarterly results.