A significant increase in sales in the last quarter has given Wall Street back faith in the photo app Snapchat. Shares in parent company Snap jumped more than a quarter in after-hours trading on Thursday. Three months ago, the price collapsed by more than 30 percent after disappointment with the previous quarterly figures.
A significant increase in sales in the last quarter has given Wall Street back faith in the photo app Snapchat. Shares in parent company Snap jumped more than a quarter in after-hours trading on Thursday. Three months ago, the price collapsed by more than 30 percent after disappointment with the previous quarterly figures.
Snap revenues rose 21 percent year-on-year to just under $1.19 billion in the last quarter. Before that, Snapchat’s once rapidly growing ad business had weakened because advertising dollars had increasingly flowed to heavyweights like Google and Facebook.
The bottom line is that Snap posted a loss of $305 million (284 million euros) after being in the red of $328.7 million a year ago. Snap boss Evan Spiegel has already taken austerity measures to counteract this.
For the current quarter, Snap forecast sales of between $1.225 and $1.255 billion, hitting analysts’ estimates at the lower end of the range.
Source: Stern
