Snap stock up after positive Q4 results
Snapchat’s parent Snap Inc. pleasantly surprised investors with a better-than-expected fourth quarter (Q4) revenue report. Snap stock soared after the news.
Snap earnings: key figures
|Earnings per share||loss of $0.14|
|Average revenue per user||$2.09|
|Daily active users||186 million|
Snap's Q4 earnings were predicted to be high, and the better-than-expected results didn't disappoint. While Snap's earnings per share was at a loss of $0.14, it wasn't as bad as expected from Wall Street's expected loss of $0.19 a share. Snap's Q4 revenue was $389.8 million, surpassing the projected $377.52 million and the average revenue per user was $2.09. Snap's daily active users was the same as last year.
Despite investigations from the US Securities Exchange Commission, Snap exceeded projections. Snap chief executive officer, (CEO), Evan Spiegel, spoke about Snap's Q4 results in a statement.
'We have worked hard to develop our team and culture in 2018. The transitions we made in both the Snapchat platform and our business last year were necessary and created many of the opportunities we have ahead of us but change is always difficult and this past year was no exception. Although 2018 was challenging in many ways, we are proud of the significant changes we have made to strengthen our company and grow our business over the long-term,' said Spiegel.
What do Snap's Q4 results mean for their share price?
Snap's Q4 share has already risen by as much as 20% since it released its earnings report.
How do Snap's Q4 results compare to other tech stocks?
Snap's Q4 results were positive, similar to rival Facebook. Though Facebook's Instagram Stories is competition for Snapchat in social media, Snap still managed to maintain a high number of daily active users.
What is Snap's dividend forecast?
Snap's dividend forecast for Q1 is $285-$310 million in revenue. Snap is also preparing an Android app to replace Apple users who left after disapproving of the company's last redesign. Speigel expressed his hope for the Android app.
'I will say I’m very excited about the Android opportunity. There’s roughly 2 billion people who are on Android and don’t have Snapchat, so if we can take a few percent market share there, it’d make a real difference to our user base.If we look at the development of the leadership team over the last year, it made a massive difference in the business and for me personally. Now I’m freed up to do what I love on the product side. We are excited for the year ahead, and we are confident that we are well positioned as we enter the new year,' said Spiegel.
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