Snap Earnings Post Higher Than Expected Revenue, User Growth

Snap Earnings Post Higher Than Expected Revenue, User Growth

The parent of communications app Snapchat, which has been struggling since going public in March, reported revenue of $285.7 million, beating Wall Street estimates of $252 million and surging 72% from the year-ago quarter.

Shares in the social media company spiked Tuesday, rising 22 percent in after-hours trading. Snap lost $443 million last quarter, nearly the same amount it lost in Q2 and up considerably from the $124 million it lost in Q3 the year prior. The company's stock chart Tuesday afternoon looked similar to the trajectory of Elon Musk's SpaceX rocket, launched into outer space just minutes before Snap reported - straight up.

Snap added 8.9 million daily active users, bringing the total to 187 million. Previously, Snap made a bet on hardware - its Spectacles - but ended up losing $40 million on the video-recording sunglasses last quarter when they proved to be far less popular than expected. Bank of New York Mellon Corp now owns 36,643 shares of the company's stock worth $651,000 after buying an additional 13,336 shares during the last quarter.

Wall Street is looking for revenue of $253 million, or a 52 percent jump over previous year.

Srinagar Hospital Firing: Pakistani terrorist escapes, cop killed
One policeman was also killed in the gunfight between the militants and the security forces. Earlier the militants fired upon the police party killed one on spot and injuring another.

After struggling to grow its audience throughout the year, Snap unveiled a significant redesign in November meant to make its messaging service more intuitive to users. He also writes at length about the Snapchat redesign. It will hold an investor call with analysts and reporters at 5 pm ET.

"This was a major step in the right direction for Snap", says Daniel Ives, an analyst with GBH Insights. It "will be a tough pill to swallow for all the naysayers that threw in the white towel over the last few months". "They have a long way to go, but this was a good first step".

Facebook and Instagram may have successfully borrowed a lot of Snap's designs, but it still has a few tricks up its sleeves.

The results mark a rare win for Snap, whose first year as a public company has been hobbled by stagnant user growth and management departures, including the loss of its heads of product and engineering. But heading into the IPO, analysts estimated Snap's sales for 2017 would hit $1 billion.

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