Snap announces better than expected earnings


Even with the spike from the earnings, shares are about $17, which was the initial offering price last March.

The company said it now has 187 million Daily Active Users, thanks to improvements made to the Android version of the Snapchat app.

The results are a pleasant surprise for Snap to start the year, but the company is still facing fierce competition from Facebook Inc. -owned Instagram and Whatsapp.

So, how did Snap fare during Q4? This exceeded the $252.9 million that was expected by analysts polled by Yahoo Finance, according to Forbes. Piper Jaffray Companies reaffirmed a "hold" rating on shares of Snap in a report on Wednesday, October 11th. Ameriprise Financial Inc. bought a new stake in shares of Snap during the 2nd quarter worth $278,000.

In the previous quarter, Snap took a write-down from poor performance of the Spectacles video sunglasses, and it announced a re-design of the app that would make it easier for users to use.

It is hoped that the redesign, which is still in the process of rolling out, will help the company scrape back some of the early-stage popularity that was knocked by Instagram Stories.

Taking what CEO Evan Spiegel called a real "risk", Snap unveiled Snapchat's highly anticipated redesign during the fourth quarter.

The retention rate of new Android users increased by almost 20% when compared to past year, meaning that the people who try Snapchat on Android are much more likely to stick around and become daily active users.

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Wall Street was disappointed in the meagre amount of new users that Q3 of 2017 brought, but this has significantly turned around for the final quarter of the year.

Snap continued the practice of not providing explicit guidance but did point out that despite business progress, growth should slow in the first quarter.

Snapchat added 8.9 million daily active users in the period, the biggest gain since the third quarter of 2016.

Over the last two years Snap has employed 2,400 people but Spiegel said that, while it was initially important to build its foundation of staff to keep up with the growth of the business, the plan was now to "unlock substantially more productivity", Geekwired noted.

Another change that likely led to a successful Q4 for Snap was a shift toward programmatic ad buying. "We are learning a lot while operating our automated advertising platform and we are constantly improving the way we sell and serve advertising".

Aaron Goldman, CMO, 4C Insights, commented on Snapchat's resurgence: "Snap benefited from some of the seasonality that's expected during the holidays as advertisers heavy up but also saw some new brands come in and test the platform as a place to engage hard-to-reach audiences".

Snap executives warned that the 72% revenue growth in the last three months of the year was not sustainable, telling investors that revenue growth in Q1 would "moderate".

Westpac Banking Corp boosted its position in Snap Inc (NYSE:SNAP) by 42.0% during the fourth quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC).