Snapchat Soars as Parent Beats Financial Expectations

Snapchat Soars as Parent Beats Financial Expectations

The company reported its loss widened to $350 million in the last three months of 2017 after a $170 million deficit a year earlier.

Snap has sought to boost engagement by offering new kinds of content, including snippets from sporting events and media partners. Shares in the company, which went public in March 2017, surged more than 21 percent in after-hours trading, to $17.07, their highest level since last June.

The positive news about Snap's revenue was well received by Wall Street, however. The company had a trading volume of 166,232,094 shares, compared to its average volume of 22,712,875.

"There is a strong likelihood that the redesign of our application will be disruptive to our business in the short term, and we don't yet know how the behaviour of our community will change when they begin to use our updated application", Spiegel said. It also aimed to entice more creators, like those on YouTube (and previously on Vine), to embrace the app as a platform.

Snap's CEO Evan Spiegel says Snapchat's delayed redesign is testing well and will launch for everyone during the first quarter of this year.

News of the redesign initially spooked investors, and the changes have only trickled out to small test groups, so far.

Snapchat founder and chief executive Evan Spiegel said past year that changes could annoy Snapchat users in the short term. Instagram is the most popular in the country with 60% usage in the U.A.E.in 2016.

India look to take unbeatable lead over SA
Even though conditions suggested otherwise, stand-in captain Aiden Markram won the toss and surprisingly chose to bowl first. Historically, Newlands has been lucky for South Africa as they played 33 matches at the venue, and won 28.

Snap is still struggling massively to bring its revenue up to par with expenses.

That is a growth of 46 per cent compared to the previous rate, although costs per user failed to grow at the same rate - only reaching 36 per cent. It also added 8.9 million users, beating expectations of 6 million.

While Snap Ads generate the most revenue in total, Snapchat's Sponsored Lenses and Sponsored Filters - collectively called its Creative Tools - rake in more money per ad. We'll have to wait to see if that will be enough to help turn the tide on expenses. A drop in quality takes users' attention elsewhere and Snapchat is now facing that challenge. However, in order to keep growing their user base, Snapchat needs to make sure they maintain the quality and relevance of their content, especially as they try to size up to Instagram.

Daily active users rose 18 per cent from a year earlier, reversing a trend of slowing growth.

Snap delivered a fourth quarter that was a bit of a shock as revenue came in higher than expectations.

This quarter was certainly a turnaround for Snap and, while it is now operating at a loss, there is much evidence to prove that its business strategy is paying off.

These financial and growth achievements come after months of a declining stock, news of top talent leaving the company, and concern of older users fleeing to Facebook's Instagram Stories. Anything else Snap thinks to do-like sell plush toys or video glasses-seems to be like rearranging deck chairs on the Titanic.

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