Snap Inc.’s share price soared more than 26 percent to as high as $17.80 a share in after-hours trading Tues., Feb. 6 after the Snapchat developer posted revenue for the quarter ended Dec. 31 that beat stock analysts’ expectations.
The Venice-based company, which released its fourth-quarter earnings report after the market closed, said quarterly revenue of $285.7 million rose more than 72 percent above revenue for the prior, year-ago period. Analysts had expected $252.9 million in revenue for the quarter.
Snap Inc. has suffered a year’s worth of disappointment from Wall Street, whose investors believe the Venice-based company isn’t growing its number of users – and associated advertising revenue – fast enough. Snap’s revenue last year grew about 104 percent to $824.9 million.
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 net loss of 13 cents a share also was more positive by 3 cents a share than analysts’ expectations of a loss of 16 cents a share, according to a Thomson Reuters consensus estimate. Its net loss was about $350 million for the quarter ended Dec. 31.
Technology reporter Garrett Reim can be reached at email@example.com. Follow him on Twitter @garrettreim for the latest in L.A. tech news.
For reprint and licensing requests for this article, CLICK HERE.
Stories You May Also Be Interested In
- Silicon Beach Report Feb. 6: Falcon Heavy Launch Completes Successful Test Launch
- Snap Inc.’s Slow Second-Quarter Growth Disappoints Wall Street
- Snap Inc. Reports Slow User Growth, Shares Drop More Than 25 Percent
- Snap Inc. Shares Tumble After Underwriter Downgrades Stock
- Silicon Beach Report Nov. 2: Activision Blizzard’s Q3 Results Beat Expectations
- Snap Shares Soar 44 Percent
- Snapchat Photos Can Now Be Viewed Indefinitely
- Silicon Beach Report Aug. 11: Snap Confirms Acquisition of Zeny for $213 Million