Snap Inc., which has faced pressure after missteps with its SnapChat social network and high turnover in the executive suite, reported increased revenue but flat user numbers in its fiscal fourth quarter.
Shares in the tech company soared 20% after hours Tuesday after closing at $7.04, their highest level since October, during the regular trading day.
Revenue increased 36% to $389.8 million and diluted losses per share narrowed to 4 cents, ahead of Wall Street’s expectation for a loss of 8 cents a share.
The number of daily active users held fairly steady at 186 million, compared with 187 million in the year-earlier period. On a sequential basis, the user base was flat with the previous quarter, indicating a stabilization, which for Snap investors came as a relief.
Snap CFO Tim Stone Quits After Eight Months
The company has faced intense scrutiny in recent weeks after the abrupt resignation of Tim Stone, who had been poached from Amazon to be Snap’s CFO last fall. His exit, which takes effect after today, followed that of several other top-level execs in 2018.
CEO Evan Spiegel put a different spin on last year in the official earnings release.
“In 2018, we focused on building a foundation to scale the business over the long-term by driving sustainable product innovation, scaling our advertising platform and hiring the leadership team that will help us achieve our future goals,” Spiegel said. “We ended the year with user engagement stabilizing and have started rolling out the new version of our Android application to a small percentage of our community. We are substantially closer to achieving profitability, as we have maintained a relatively flat cost structure across the past five quarters while growing full‐year revenue 43% year‐over‐year.”
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