Tech

Snapchat Stock Soars on Revenue Gains

Snapchat Stock Soars on Revenue Gains”

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.

Snap said in its IPO prospectus that restricted stock units include performance incentives and time-based incentives, with most of the latter vesting over four years.

Revenue for the December quarter reached $285.7 million, exceeding the analyst consensus forecasts of $252.95 million.

Snap shares soared by about 20 percent Tuesday on the strength of its unexpectedly upbeat quarterly report.

The company also showed signs of accelerated user growth.

Snap, which makes the Snapchat app, has been struggling to stay ahead of Facebook and Instagram. Then, the company fell out of favor on Wall Street, hit by a slew of analyst downgrades.

According to eMarketer, Snap has seen some ad progress, but it's share of the market is tiny.

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

"We continue to view Snap's audience and platform as a unique asset in the digital-media space with a long monetization runway", said John Egbert, an analyst at Stifel Nicolaus, in a note to investors before the results.

The report, Snap's first annual earnings disclosure since it went public last March, marks the end of a bumpy year for the seven-year-old company.

"Our work during 2017 is proof that we aren't afraid to make big changes for the long-term success of our business", Snap Inc. It's a significant boost in users since the third quarter of 2017, when Snapchat added just 4.5 million DAUs.

Snap shares skyrocketed as much as 29% Tuesday to more than $18 apiece in after-hours trading after the company beat Wall Street expectations.

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. 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.



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