what happened
Shares of Cut (NYSE: SNAP) jumped 9% on Friday after announcing the solid results of the social media venture in the fourth quarter.
Approximately
Snapchat’s parent company saw its daily active users rise 22% to 265 million. Snap’s revenue, in turn, rose 62% to $ 911 million. That was much higher than the $ 857.4 million revenue expected by Wall Street.
“Our team has worked tirelessly to help people stay close to friends and family, even when they are physically separated, and we are proud of the strong results we have delivered for our advertising partners this term and throughout the full year,” he said. CEO Evan Spiegel said. said in a press release.
Investors applauded Snap’s strong Q4 growth statistics. Image Source: Getty Images.
Snap reported a net loss of $ 113 million in the fourth quarter. However, the company achieved its first full year with positive adjusted earnings before interest, tax, depreciation and amortization (EBITDA). This profitability improved to $ 45 million in 2020 compared to a loss of $ 202 million in the previous year.
Now what
Management expects Snap’s revenue to rise approximately 58% year-on-year to $ 730 million in the first quarter. However, Snap warned it appealThe upcoming privacy changes on its mobile devices could undermine the advertising business.
Spiegel said Apple is the right thing to do to protect the privacy of its customers. “We generally consider it a good thing for consumers, even if it’s a little disruptive for advertisers in the short term,” Spiegel told CNBC.