- Shares of Snap, the parent company of Snapchat, jumped 11% in early trading on Wednesday after the company posted second-quarter earnings that smashed Wall Street expectations.
- Snap reported revenue grew by 48% year-over year to $388 million compared to the $359.77 million predicted by analysts.
- Daily active users, one of the most closely watched metrics for Snap, increased to 203 million in the second quarter, beating estimates of 192.4 million.
- Watch Snap trade live.
Snap — the parent company of photo-sharing app Snapchat — surged 11% in early trading on Wednesday. The gains came after the social media company reported second-quarter revenue, daily active users, and average revenue per user tore past Wall Street estimates.
Revenue grew by 48% year-over-year to $388 million while analysts expected the number to be closer $359.77 million. Snap recorded a loss of $0.06 per share compared to estimates of $0.10.
Daily active users, one of the most critical numbers for Snap and other social media companies, rose to 203 million during the period, compared to the 194 million predicted by Wall Street. The average revenue per user on Snapchat increased to $1.91, beating forecasts of $1.84.
"The growth in our community, engagement, and revenue is the result of several transitions we completed over the past 18 months," Evan Spiegel, the chief executive officer of Snap said in a statement. "We look forward to building on our momentum and making significant ongoing progress in each of these areas."
Snap added a total of 13 million DAU's in the second quarter thanks to growth across both iOS and Android platforms, and in regions such as North America and Europe. According to the Snap's earnings release, the recently updated version of its Android app led to a 10% increase in the retention rate for first time users.
The company expects third quarter revenue to be between $410 million and $435 million.
Snap was up 169% year-to-date through Tuesday.
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