Unlike Facebook, Snap added daily users in North America in Q4

Laverne Mann
February 7, 2018

But for the fourth quarter, Snap said it now had 187 million daily active users, 18% higher than a year ago and also up slightly from analyst projections of 184 million. Also, its $286 million in revenue beat analyst expectations by more than $30 million, a turnaround form the third-quarter when Snap fell short of Wall Street's forecasts.

Facebook said last week its daily average users in the USA and Canada fell slightly from the third quarter, to 184 million.

One of the simplest ways for Snap to get more revenue (albeit, with more costs, too) is to drum up new users. It's an important metric for Snap, which has been public about its desire to expand primarily into markets where new users can help the company's business, not just emerging markets where there is little advertising opportunity.

Excluding certain items, the Los Angeles-based company reported a loss of 13 cents a share, compared to the 16-cent loss analysts predicted. If the gains hold, Snap's stock could open above its IPO price of $17 a share for the first time since July.

Revenue rose 72 percent year-over-year to $285.7 million.

"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. Analysts had been expecting a loss of around $409 million, on about $255 million in revenue.

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Wall Street is looking for revenue of $253 million, or a 52 percent jump over previous year.

Snap is working on redesigning its app to separate what friends share and what media organizations publish in an attempt to appeal to a broader range of users.

Snap will report earnings after the markets close.

Snap spends a ton of money and the company is still not profitable.

Snap shares soared by about 20 percent Tuesday on the strength of its unexpectedly upbeat quarterly report. Snap made $1.53 per user - a 46 percent jump year-over-year - and a healthy bump from its $1.17 reported during Q3.

Other reports by MaliBehiribAe

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