Snap Soars After A Surprise Q4 Earnings Beat

Snap Inc SNAP shares are soaring after reporting a big earnings beat.

The social media company reported a fourth-quarter adjusted earnings loss of 4 cents per share, beating estimates by 4 cents. Sales came in at $389.82 million, beating estimates by $14.6 million.

"In 2018, we focused on building a foundation to scale the business over the long-term by driving sustainable product innovation, scaling our advertising platform, and hiring the leadership team that will help us achieve our future goals," CEO Evan Spiegel said in the press release.

"We ended the year with user engagement stabilizing and have started rolling out the new version of our Android application to a small percentage of our community. We are substantially closer to achieving profitability, as we have maintained a relatively flat cost structure across the past five quarters while growing full-year revenue 43 percent year-over-year."

Other Highlights

• Daily Active Users of 186 million were flat sequentially, down from 187 million year-over-year
• Revenue increased 36 percent to a record $390 million
• Operating loss improved $166 million to ($195) million
• Adjusted EBITDA loss improved $109 million to $(50) million

Snap shares were up 15.5 percent to $8.13 in the after-hours session. The stock closed at $7.04.

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