Snapchat just did something insane. It beat expectations


Snap shares were up 26%, near 17.70, in after-hours trading on the stock market today.

Snap also added more users than expected, with daily active users rising almost 9m to 187m from the previous quarter.

The Venice, California-based company posted a net loss of $350 million, or 28 cents per share, down from a loss of $170 million, or 20 cents per share, a year earlier.

Snap brought in almost $286 million in revenue during the fourth quarter of 2017, up 72 from the same period the previous year. Finally, Cowen reissued a "hold" rating and set a $12.00 price objective on shares of Snap in a research report on Friday, November 10th. They had not traded above Snap's initial public offering price of $17 since July 10. The sales boost represented a 72 percent year-over-year increase.

"Our work during 2017 is proof that we aren't afraid to make big changes for the long-term success of our business", Evan Spiegel, the cofounder and CEO of Snap, said in a statement. Its growth over the three months of the third quarter was 2.9%.

More news: Amit Shah dials Chandrababu Naidu while TDP rethinks alliance with BJP

Snapchat closed the year with $825 million in revenue, which was double the revenue of 2016. Revenue per user rose 46 percent from a year earlier to $1.53, while cost of revenue per user rose 5 percent to $1.02.

The app now has 187 million users, which still puts it far behind rivals like Instagram Stories, a Snapchat clone that now has more than 300 million daily users.

"Our business really came together towards the end of previous year", Spiegel said in remarks prepared for a conference call with analysts. 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.

The silver lining in a hard 12-month period for Snap is that it continues to grow both users and revenue despite Facebook's ruthless attempts to demolish it. Facebook's copies have certainly hurt the company, but they have not killed it yet.

"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", Goldman says.