Investors are very relieved about Snap "s latest earnings report: The Snapchat maker not only beat analysts" revenue expectations for Q4 of 2017, but also posted the biggest net user addition in over a year.
Snapchat closed the year with $825 million in revenue, which was double the revenue of 2016.
Eyes will be on expectations that Snap added 6M users to reach 184M (16% Y/Y growth). Vanguard Group Inc. now owns 8,353,729 shares of the company's stock worth $148,446,000 after acquiring an additional 1,601,170 shares in the last quarter.
The company has also suffered from unfavorable comparisons to Facebook Inc.'s Instagram, which is rapidly expanding and aggressively copying Snapchat's most-popular features.
Snap's sales climbed to $285 million in the fourth quarter, up 72% from the same period a year earlier.More news: Kashmir is a lifeline for Pakistan: Khawaja Asif
After the bell, Snap reported $285.7 million in revenue and a loss of 13 cents a share for the three months ended December 3.
The ephemeral messaging app sccessfully wooed more advertisers in the fourth quarter as it became easier to place ads through its still-nascent automated platform, according to Aaron Goldman, chief marketing officer at 4C, which plugs into Snapchat to deliver ads.
That re-design, separating friends from brands, was launched in late November, but has yet to roll out to all users. Ever since the company behind Snapchat publicly unveiled paperwork with plans for a $20 billion IPO nearly exactly a year ago, concerns have surfaced about Snap's long-term viability.
Investors were impressed. The company's shares, which have almost halved in the past year, rose more than 20 percent in after-hours trading to $16.95. Earnings per share came in at $0.13 compared to a significantly lower $-0.16.
Even though Snap wasn't vocal about its release, Snapchat's new Do Not Disturb comes at a time when more people in the tech industry are talking about smartphone addiction. Analysts had only been expecting Snap Inc (SNAP) to add 6 million daily users for a total user base of 184 million daily users. Some of those costs are due to expensive cloud services deals with Google and Amazon that once signaled that Snap was bracing for an explosion of user growth.