Snap Inc. rocketed 59.18% on Thursday post-trading after releasing its first-ever profitable quarterly results on a net income basis as a public company.
Correspondingly, its stock price significantly gained 14.50 points to $39.00 per share. It reversed its slump of 23.60% or 7.57 points in the regular market session.
The social media company now stands with a market capitalization of $39.44 billion, with 1.61 billion shares outstanding.
In the fourth-quarter results, Snap Inc. surpassed analysts’ estimates on the top and bottom lines.
Accordingly, the company posted earnings of $0.22 per share, doubling the expected $0.10.
Its revenue posted at $1.30 billion, an increase of 42.00% from the prior-year quarter. It also edged up against the consensus of $1.20 billion.
Then, the first quarter of positive net income as a public company reached $23.00 million.
For the full year, it widened 64.00% to $4.10 billion, compared to its performance last 2020.
Q4 daily active users also elevated 20.00% year-over-year to 319.00 million across the globe. The figure came in higher than the average market estimate of 316.90 million.
Snap CFO Derek Andersen explained that the company’s advertising business has recovered from the Apple changes quicker than anticipated.
The adjustments on iOS allowed users to prevent apps from tracking their online activity for advertising purposes.
This move makes it harder to target consumers with advertiser content, hurting companies’ ad revenue.
However, Andersen added that the worldwide supply chain disruptions hurt advertising demand from consumer packaged goods and restaurant brands.
Meanwhile, the report came a day after Meta Platforms Inc. delivered disappointing first-quarter guidance, dragging the social media stocks.
The tech giant closed 26.39% down on Thursday, taking a big hit from Apple’s privacy changes.
Snap Inc. Provides Upbeat Q1 Outlook
Moreover, Snap Inc. forecasted its Q1 revenue between $1.03 billion to $1.08 billion, above the anticipated $1.01 billion.
It also projected its daily active users between 328.00 million and 330.00 million in the current quarter. This adjusted figure outpaced the market expectation of 327.80 million.
Similarly, Pinterest Inc. climbed 20.97% or 5.14 points to $29.65 per share following a better-than-expected quarterly report.