Snapchat beats expectations for 2017 earningsBy Robin-Leigh Chetty 7 February 2018 | Categories: news
It seems like Snapchat (aka Snap Inc.) still has a bit of fight left in it, with the company recently announcing that it earned an estimated $825 million in revenue for the entirety of 2017. This helped the share price jump by a healthy 23%, holding at roughly $17.32.
The figures buck the expectations on Wall Street, with the company breaking a negative trend of the past few quarters. Snapchat is not out of the woods just yet though, as it is still losing money on the whole.
That said, Snapchat still has the potential to bounce back if it's able to put the latest positive quarter to good use and leverage some of the key statistics that have been unearthed. According to FactSet, Snapchat's daily active users increased by 18% to 187 million in total, with average revenue per user growing bt 46% to $1.53.
Whether that is enough to help lessen the gap between Snapchat and its main competitor Instagram remains to be seen. But given the negative response from users following a recent redesign, perhaps Snapchat will have a tougher time than anticipated.
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