Snap, parent of the disappearing message app Snapchat, posted a surge of more than 20% on Tuesday in the fourth quarter, preventing users from falling and lowering their sales expectations.
As a result, the Los Angeles-based company was confronted by investor concerns about Facebook's own Instagram and intensifying competition in recent management trends.
However, in the fourth quarter of 2018, revenues increased 36 percent to $ 3.6 billion, exceeding analysts' expectations of $ 379 million. Net loss decreased nearly half, to $ 192m year-on-year.
Snap lost millions of users early last year due to the unprecedented redesign of its apps, and Instagram became popular with its competitors' Stories feature.
Snap said daily users were flattened to 186m in the fourth quarter and stabilized after falling for two consecutive quarters. We also do not expect to see a drop in users in the first quarter of 2019.
Snap CEO Evan Spiegel said, "We have maintained a relatively flat cost structure during the last five quarters, with annual revenues up 43 percent, far more than profitability.
Stocks rose more than 20% on the results, but they exchanged about $ 8.50, but still far from the $ 17 issue price in March 2017.
The company said new ad formats and self-service tools have helped marketers increase their advertisers by helping marketers buy their own ads.
It also says it has released a long-awaited update to its Android app. Spiegel has previously condemned the Android app's weaknesses for the user's third quarter decline.
The group said the new app has a small number of current users and the initial metrics are "promising."
Debra Aho Williamson, senior analyst at research firm eMarketer, said, "When Snap has fully rolled out its Android app, it says," You can move your company back to growth. " Nonetheless, some analysts are still pondering the outlook.
Jim Cridlin, Director of Innovation Innovation at Mindshare, WPP commented, "In addition to the efforts of younger customers, it is more and more common to justify snapshots for customers because they have large, It's getting harder. "It's not always a big part of many media plans and can limit growth. "
In the forecast, revenue for the first quarter is expected to grow from 24% to 34%, from $ 285 million to $ 310 million. Snap expects adjusted losses, including interest, taxes, depreciation and amortization, to fall from $ 218m to $ 165m in the same period last year.
The result is the end of Snap's turbulence until 2019. In particular, investors peaked in January, 18 months after the group lost its second chief financial officer (CFO). Tim Stone, a former Amazon executive, announced he plans to leave only seven months shortly after colliding with Spiegel.
Spiegel said on Tuesday that the group "focused on hiring a leadership team to help us achieve our future goals." Jared Grusd has appointed Chief Executive Officer of the former Huffington Post as Chief Strategy Officer. Jeremi Gorman, Amazon's chief advertising officer, was Chief Executive Officer (CIO).
Mr. Stone's pronoun has appointed Lara Sweet, former Chief Account Officer of Snap, not yet defined, as interim financial officer.
Snap is also fighting against the legal recession. In November, the company said the US authorities are investigating complaints that Instagram deceived investors ahead of a $ 3.4 trillion boost to the challenge of future growth. This investigation is related to the class action brought by some shareholders.