Santa Monica’s Snap Inc. revenue beats estimate, shares snowball 23%



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Santa Monica’s Snap Inc. revenue beats estimate, shares snowball 23%

Late on Tuesday, Snap Inc., the Santa Monica, California-headquartered social media company operating a number of technology products and related services likes of Snapchat, Spectacles and Bitmoji, had released its quarterly earnings’ report for Q3, 2020, that had insanely beaten an analysts’ estimate for user growth and revenue, leading to a giant leapfrog of 23 per cent of its shares’ prices on Tuesday’s after-market trading.

In point of fact, as the Californian social media company appeared to have brought in more sign-ups than expected over the third quarter of the year that ended on September 30, in part due to a pandemic-led lockdown measure that forced friends and families to avoid in-dine meets or social gatherings, shares’ prices of NYSE-listed Snap Inc.

rocketed as much as 23.02 per cent to $35 per share in the post-market trading after winding up the day down by 0.73 per cent to $28.45 a share.

Snap Inc. forecasts Q4 growth above estimate

Apart from that, at its quarterly earnings’ report that was released late on Tuesday, architect of the popular social networking platform SnapChat had also raised its forecast for the number of daily users to 257 million in Q4, 2020, compared to an analysts’ expectation of 249.81 million.

In tandem, according to Snap Inc.’s third quarterly earnings’ report, the social media company’s Daily active users (DAUs) grew more than 18 per cent to 249 million on a year-over-year basis, beating an analysts’ expectation of 244 million, data from Factset had revealed.

Besides, the Santa Monica-based social media company’s revenue climbed as much as 52 per cent to $679 million, wildly beating Wall St.

estimates of $555.9 million, as a few of its core apps such as SnapChat has been growing its user-bases outside the US and EU by creating partnerships with local telecom providers, while cutting-edge features likes of photo filters and lenses had been boosting local growths, Snap Inc.

Chief Executive Evan Spiegel said in a post earnings’ conference call with the reporters. Concomitantly, Snap Inc.’s net loss had been narrowed to a $199.8 million or 14 cents per share compared to a loss of $227.37 million registered at the same time a year earlier.