Snap is going bananas after stopping the bleeding of its user base
- Snap beat on both the top and bottom lines.
- The company also said its daily active-user count stabilized in the period after two quarters of decline.
- Snap shares under pressure over the past year as the company lost popularity following its redesign and had to deal with sustained pressure from Facebook and Instagram.
- Watch Snap trade live.
Snap was up 21.7% early Wednesday to $8.57 a share after saying its biggest problem - a declining number of daily users - has finally stabilized.
The social-media company on Tuesday evening reported a better-than-feared loss for the fourth quarter. It said it lost $0.14 a share on revenue of $389.8 million, topping the $0.19 loss and $377.5 million that was expected.Additionally, the company's Snapchat app had 186 million daily active users during the quarter, the same number as the previous quarter. This was the first time in three quarters that Snap's daily user count hadn't fallen.
Looking ahead, Snap sees first-quarter sales in the range of $285 million and $310 million. Analysts were hoping for revenue of $306.28 million.
Snap had tough time in 2018. On February 21, the social-media celebrity Kylie Jenner blasted the Snapchat app's redesign and said her days of using the app were over. Shares have since fallen 50% as the Snapchat app has lost popularity following its redesign while also dealing with sustained pressure from Facebook and Instagram. The combination of those difficulties have contributed to the app's declining user base.
In August, Snap said in its second-quarter earnings release that it had suffered its first ever decline in sequential daily active users. That trend continued in its third quarter, when the company said its number of daily active users fell by 1%.
Snap was up 47% so far this year.