The photo platform Snapchat exceeded expert expectations in the fourth quarter.
(Photo: AFP)
santa monica The makers of the photo app Snapchat have been able to convince skeptical investors with fresh business figures. On Thursday, investors had the shares of the operating company Snap collapse by more than 23 percent in the wake of the Facebook price crash. But when Snap presented its own numbers after the US stock market closed, the mood changed. The price jumped more than 47 percent in after-hours trading within minutes.
The number of daily active Snapchat users rose from 306 to 319 million within three months. In addition, Snap increased sales in the past quarter by 42 percent year-on-year to $1.3 billion. The bottom line was a profit of $22.5 million after being in the red from $113 million in the same quarter last year. For the current quarter, Snap has announced sales of a good one billion dollars.
Among other things, the recovery from the consequences of the latest Apple data protection update has started faster than expected, explained CFO Derek Andersen. This had severely added to Snap in the previous quarter.
The Facebook group Meta had lost more than a quarter of its value on Thursday. The price drop was triggered by the first decline in the number of daily active Facebook users and investors’ disappointment with the sales forecast for the current quarter. Shares of Facebook competitors like Snap also fell under the wheels.
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