Snap Pops On Highest Revenue, User Growth In 4 Years
By Dhirendra Tripathi
Investing.com – Snap (NYSE:SNAP) stock soared more than 16% in Friday’s premarket trading following an upbeat second quarter and a guidance that indicated continued momentum at the social media outlet.
Thursday’s after-market trading had briefly catapulted the company to over $100 billion market cap.
The company’s efforts at attracting advertisers and users alike bore fruit as both revenue and daily active users recorded their highest growth in 4 years.
Snap's second-quarter revenue jumped 116% year-on-year to $982 million, well above the expectation of $844.63 million.
The social media platform, known for its short-lived messages, expects its third-quarter revenue to rise 58%-60% year-over-year to clock between $1.07 billion and $1.08 billion.
Average revenue per user, a key indicator of how much the company managed to pocket from each user every month, jumped 76% to $3.35, going some way to address long-standing concerns that Snapchat doesn't monetize its customer base effectively.
Daily active user numbers rose 23% to 293 million and analysts expect this to grow to 298.5 million by the end of the ongoing quarter, according to Reuters.
The company’s net loss more than halved to $152 million from $326 million from the same quarter a year ago. Revenue jumped 116% to $982 million.
Adjusted diluted earnings per share improved to 10 cents from 9 cents earlier.
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