Snap defied Wall Street's sour outlook and posted better than expected results on Tuesday helping to push up shares by over 15 percent in after hours trading.
The company said daily active users in the fourth quarter remained unchanged from the previous quarter at 186 million users - and that was good news to investors as the photo-messaging app has struggled since going public in 20-17 with rival Instagram by Facebook copying many of its popular features.
Reuters Reporter Sheila Dang.
SOUNDBITE: REUTERS REPORTER SHEILA DANG, (ENGLISH) SAYING:
"So Snapshot has really been able to turn the ship around in a sense. They did not lose users this quarter. It remained flat and investors were expecting them to continue to lose users so that's a really good sign for them. And even though a snapshot is still much smaller than Facebook they've shown that they're able to hold on to their existing users and they're going to try to gain more outside of the U.S. in Europe."
Snaps revenue also rose 36 percent on year, beating Wall Street expectations thanks to an easier to use ad buying platform for marketers and new formats such as commercials on its original shows you can't skip. It still posted a net loss of nearly $200 million dollars but smaller than a year ago and CEO Evan Spiegel said the company was QUOTE "substantially closer" to achieving profitability.
In addition to struggling to keep users last year, the company also struggled to keep its key executives, including its CFO Tim Stone who is leaving less than a year after joining the company.
The company has introduced more video content including original scripted shows with the aim of keeping hold of its users. Snap also started rolling out its new Android app rebuilt to deal with bugs and improve the user experience which was lagging behind the Apple iOS snapchat app.