After several months of dismal performance, Snap Inc.'s latest report confirmed forecast-beating fourth quarter earnings -- sending the beleaguered stock soaring back with gains of more than 20% in Tuesday’s after-hours trading.
The adjusted earnings loss for the fourth quarter stood at 4 cents per share, beating estimates by 4 cents. Sales came-in at $389.82 million, beating estimates by $14.6 million. Revenue increased 36% to a record $390 million, while operating loss improved $166 million to ($195) million. Adjusted EBITDA loss improved $109 million to ($50) million.
The CEO attributes this success to the long-term business strategy of developing its innovation-based businesses, sustainable product development, scaling advertising platform and hiring an expert leadership team.
With its daily average user count hovering around 186 million, the company also managed to boost its revenue per user to $2.09 from $1.53 in the year-ago period.
The year for the company ended on a positive note as user engagement stabilized after rolling out the latest variety of Android application to a small percentage of the community. Also, the company focused on maintaining a relatively flat cost structure over the last couple of quarters, which helped the company grow its full year revenue by 43% on a y-o-y basis.