(Reuters) – Snap Inc original shows, and rebuilt the Android app helped it add Snapchat users for the first time in three quarters and beat analyst revenue expectations, but that was not enough to push its shares higher after a sharp run-up this year.
FILE PHOTO: A woman stands in front of the logo of Snap Inc. on the floor of the New York Stock Exchange (NYSE) while waiting for the Module Inc. to post their IPO in New York City, NY, USA March 2, 2017. REUTERS/Lucas Jackson
Snap said that the number of daily active Snapchat users has increased to 190 million in the first quarter of 186 million euros in the previous period, but remained below the 191 million, a year earlier.
The figure, on a large scale in the holes held by investors and advertisers, beat analysts ‘ average estimate of 187.2 million daily users, according to the IBES data of Refinitiv.
The total revenue, a jump of almost 40 percent in the quarter from a year earlier as the Module was able to wring more ad revenue from each user.
Executives of the company in droves late last year after a widely panned redesign of Snapchat, and an uptick is a welcome sign Snap has emerged of user losses.
Chief Executive Evan Spiegel has been working on the turn, Snap the company, while the company has largely avoided privacy and other scandals plaguing larger rivals such as Facebook Inc.
Don’t give specific guidance on the future growth of the user, but cautioned that the growth rates tend to be higher in the first quarter compared to the second quarter.
The company’s shares, which rose 12 percent immediately after the results, gave the largest part of their gains to trade up marginally at $12.08. They have more than doubled in value so far this year.
“Things are on the improve Snap, and that would be to put it mildly – although with the shares up to 100% up to now this year, which is best priced in,” said Nicholas Hyett, an analyst at Hargreaves Lansdown, in a note.
In an attempt to increase how much time users spend on the app, Snap, who is faced with heavy competition from Facebook’s Instagram, launched more than 50 original shows in the reported quarter.
It rebuilt its Android app, which had more bugs and a poor user experience than the iOS app. Snap had priority for development on the Apple ecosystem by its stock market debut in 2017.
Understand the income that he generates from the sale of advertising space on the app, jumped from 39 percent to $320.4 million and beat Wall Street’s average estimate of $306.6 million.
The sales growth was helped by new ad formats, such as unskippable commercials on the original shows, which are located on the Discover of the page, a panel on the app that contains publisher content along with influencer content.
“Snap is maintained, that is a good place for them considering they still lack a clear direction on how to expand or tilt of app outside of the 34-year-old demographic,” said Jessica Liu, a marketing analyst at Forrester.
Snap the focus on privacy and communications between friends has contributed to the prevention of problems with wrong information and the dissemination of unlawful content, which have been a problem for Facebook and Google’s YouTube, two of the Module’s main rivals for digital ad dollars.
The average revenue per user jumped from 39 percent to $1.68 during the quarter from a year earlier.
The net loss reduced to $310.4 million, or 23 cents per share, from $385.8 million, or 30 cents per share, a year earlier.
Excluding items, the company lost 10 cents per share in the quarter, beating analyst estimates of the losses of 12 cents per share.
For the second quarter, Snap said it expects a revenue of $335 million to $360 million. That compares with the average analyst estimate for revenue of $348.5 million, according to IBES data of Refinitiv.
Earlier this month, Snap started with a gaming platform within the Snapchat app includes original and third-party games such as Zynga Inc. Little Royale.
Reporting by Vibhuti Sharma in Bengaluru and Sheila Dang in New York; Editing by Arun Koyyur and Meredith Mazzilli