Snapchat-owner beats forecasts as user numbers stabilize

The number of Snapchat users has stabilized after 2 quarters of decline consistent with its parent company’s latest results.
Snap said the platform had 186 million daily active users within the 3 months to 31 December.

The number is unchanged from the previous quarter however analysts had expected users to fall.

Revenues additionally rose by over expected and Snap’s losses narrowed for the period.

Snap’s share worth surged over 15% in after-hours trading.
Fourth quarter revenue rose by 36% to $389.8m and losses narrowed to $191.7m from $350m within the comparable period.

However, its shares are so much below the $27 worth they fetched after floating on the New York stock market in March 2017.

Snap, which started in 2012, is known for its charm to younger users.
It was once viewed as one of the foremost promising names in technology; however investors had soured on its prospects after a series of company stumbles, as well as a redesign that alienated some users.

Last year, the amount of daily active users fell to 186 million from a peak of 191 million within the first quarter.

On Tuesday, Snap said it had been “cautiously optimistic” that its user count would hold steady in coming months.

Snap’s chief executive Evan Spiegel additionally defended the design, saying it had positioned the corporate for future growth.

He said it’d enable the firm to expand the type of content it offers users, whereas retaining its emphasis on communication between friends.

For the complete year, Snap’s revenue rose by 43% to over $1.1bn. Losses were $1.2bn, down from $3.4bn within the previous period.

Mr. Spiegel said the corporate was reaching “substantially closer” to profitability.

“We are happy with the progress we’ve made as we tend to enter 2019 focused on growing our business and driving towards profit,” he said.

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