Snap Shares Jump on Unexpected Third Quarter Profit, Revenue Beat

Evan Spiegel_ - Getty - H 2019
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And the company cut its net loss to $199.8 million, compared to a $227.3 million loss in the prior year.

Snapchat’s parent company on Tuesday reported user growth rising 4 percent to 249 million daily active users during the third quarter of the year, up 11 million users from the most recent quarter and ahead of a Wall Street analyst forecast of 244.1 million DAUs.

And the company's stock price soared 17 percent in after hours trading after Snap reported unexpected per-share earnings of 1 cent, after excluding some costs, against an expected loss of 5 cents per-share forecast by Refinitiv. The year-earlier per-share loss was 4 cents.

Snap Inc., which owns the messaging app, saw overall revenue increase 52 percent to $679 million in the third quarter, against a year-earlier $446 million in total revenue. That blew post Refinitiv forecasting Snap revenue to hit $555.9 million.

And the company cut its net loss to $199.8 million, compared to a $227.3 million loss in the prior year.

"The adoption of augmented reality is happening faster than we had previously anticipated, and we are working together as a team to execute on the many opportunities in front of us," Snap CEO Evan Spiegel said in a statement.