Since its IPO last year, Snapchat parent company Snap, Inc has had a rough time of it on Wall Street, with investors uneasy about the social app’s sluggish growth.
Yesterday brought some good news for the company in its latest financial results though: it beat analyst forecasts with stronger-than-expected growth, and saw its share price soar by more than 25% as a result.
The key stats from the final quarter of 2017: Snapchat ended the year with 187 million daily active users, up 18% year-on-year and 5% quarter-on-quarter. Meanwhile, the company’s revenues grew by 72% year-on-year to $285.7m.
Not that this is making Snap, Inc a profitable operation yet: its net losses grew by 106% to just under $350m in Q4.
“Our business really came together towards the end of last year,” CEO Evan Spiegel told analysts in Snap’s earnings call. He talked up Snapchat’s evolution in advertising in particular.
“We increased advertising impressions by over four times year-over-year while continuing to grow per-user engagement. This demonstrates that our platform can deliver value and efficiency at scale for our advertisers,” said Spiegel.
A key challenge, given the competition from Facebook/Instagram and Google/YouTube for digital ad dollars. And here’s a claim to leave you with: “Every week, on average, more than half of the entire 13-34-year-old population of the United States plays with augmented reality Lenses in Snapchat…”