{"id":4458,"date":"2018-02-07T11:23:20","date_gmt":"2018-02-07T19:23:20","guid":{"rendered":"https:\/\/kmtechblog.com\/?p=4458"},"modified":"2018-02-07T11:23:20","modified_gmt":"2018-02-07T19:23:20","slug":"snaps-stock-price-surges-surprising-q4-earnings","status":"publish","type":"post","link":"https:\/\/kmtech.blog\/?p=4458","title":{"rendered":"Snap\u2019s stock price surges with surprising Q4 earnings"},"content":{"rendered":"
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Snap\u2019s turnaround could be happening sooner than anyone expected. The company behind Snapchat announced financial results for Q4 2017, and its performance beat expectations to send the stock price surging. Investors appeared to be impressed by growth in daily active users and revenue; however, costs remain high for Snap as profitability still hasn\u2019t been achieved. The matter of profitability aside, it was exactly the type of quarter Snap needed to silence skeptics for a bit.<\/p>\n

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Revenue year-over-year improved for both the quarter and the year. In the final months of 2017, Snap managed to generate $286 million but took a loss of $350 million. Despite the expensive loss, that\u2019s a\u00a072 percent improvement compared to Q4 2016. A\u00a0104 percent increase in annual revenue, meanwhile, meant Snap generated $825 million in 2017.<\/p>\n

The loss for all of 2017 came in at $3.4 billion, a\u00a0number that\u00a0doesn\u2019t come as a surprise\u00a0to anyone.<\/p>\n

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Its gains\u00a0are what Snap and investors should like. The number of daily active users jumped to 187 million, courtesy of 8.9 million users joining as the year came to an end. Snap says that\u2019s the highest net additions in more than four quarters.<\/p>\n

Advertisers leveraged Snapchat\u2019s appeal to younger demographics during the final quarter when the holidays increase consumer spending. That helped Snap raise its average revenue per user to $1.53, which doesn\u2019t seem like a lot until you consider how many users are on Snapchat. And it\u2019s the growth in daily active users paired with timing that allowed Snap to generate more revenue compared to previous quarters going back to 2016.<\/p>\n

Snap\u2019s Spectacles didn\u2019t get mentioned during the conference call with investors and the media. Many assume that\u2019s because the smart glasses have been quietly killed off after\u00a0hundreds of thousands of units went unsold\u00a0and piled up in warehouses.<\/p>\n

Co-founder and chief executive officer Evan Spiegel also confirmed the\u00a0overhauled Snapchat app<\/a>\u00a0will be available to all users by the end of March.<\/p>\n

Upon announcing the Q4 2017 earnings, Snap\u2019s stock price soared above $17 in after-hours trading for the first time since July of last year. The momentum continued on Wednesday morning with the stock price approaching $20. Now the big question will be if Snap can maintain interest from advertisers with its user base growing again.<\/p>\n<\/div>\n

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Snap\u2019s turnaround could be happening sooner than anyone expected. The company behind Snapchat announced financial results for Q4 2017, and its performance beat expectations to send the stock price surging. Investors appeared to be impressed by growth in daily active users and revenue; however, costs remain high for Snap as profitability still hasn\u2019t been achieved. […]<\/p>\n","protected":false},"author":3,"featured_media":4459,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[4],"tags":[],"class_list":["post-4458","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","et-has-post-format-content","et_post_format-et-post-format-standard"],"_links":{"self":[{"href":"https:\/\/kmtech.blog\/index.php?rest_route=\/wp\/v2\/posts\/4458","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/kmtech.blog\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/kmtech.blog\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/kmtech.blog\/index.php?rest_route=\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/kmtech.blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4458"}],"version-history":[{"count":0,"href":"https:\/\/kmtech.blog\/index.php?rest_route=\/wp\/v2\/posts\/4458\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/kmtech.blog\/index.php?rest_route=\/"}],"wp:attachment":[{"href":"https:\/\/kmtech.blog\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4458"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/kmtech.blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4458"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/kmtech.blog\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4458"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}