Snap Shares Skyrocket as Company Reports First Ever Quarterly Net Profit

Shares of social media giant Snap were heading higher this week after the company reported an impressive earnings report on Thursday.

The company reported earnings for the fourth quarter that beat analyst estimates on earnings, revenue and user growth.

The report also marked Snap’s first profitable quarter on a net income basis as a public company.

Snap’s report came just one day after Facebook delivered their own results as well as disappointing guidance for the first quarter. Several social media stocks had been dragged down earlier in the week as a result.

While Snap fell 23.6% Thursday prior to its own earnings announcement, the stock later soared as much as 62% after hours, before settling up about 52%.

For the fourth quarter, Snap said it added 13 million daily active users.

Earnings per share came in at 22 cents, adjusted vs 10 cents expected, according to a Refinitiv survey of analyst. Revenue was $1.3 billion vs $1.2 billion, according to Refinitv.

Global Daily Active Daily Users (DAUs): 319 million vs 316.9 million, according to StreetAccount and Average Revenue per User (ARPU): $4.06 vs $3.79, according to StreetAccount as well.

The company provided a Q1 guidance range of $1.03 billion to $1.08 billion. This was higher than the $1.01 billion analysts anticipated, according to Refinitiv. It expects daily active users between 328 million and 330 million in the first quarter, beating analyst estimates of 327.8 million, according to StreetAccount.

We’re still not where we’d like to be but, our advertisers were able to adopt a lot of our first party tools like advanced conversions and estimated conversions which they can use in conjunction with Apple’s tools and with other third-party tools for conversion lift and media mixed modeling,” Snap CEO Evan Spiegel said, addressing Apple’s privacy changes, in an interview with CNBC’s Tech Check on Friday.

The CEO said the company wasn’t as impacted as Facebook by Apple’s ad privacy shift because his company is “much earlier in our monetization journey.”

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.