"It's time for brands to embrace each of the "social" platforms as unique advertising vehicles".
On Tuesday afternoon, Snap said fourth-quarter revenue jumped 72% year-over-year, to $285.7 million, along with adjusted loss of 13 cents per share, compared to analysts' revenue forecasts of $253 million and a 16 cent per share loss.
Snap delivered a fourth quarter that was a bit of a shock as revenue came in higher than expectations.
"We see the advertiser expansion as an important source of revenue diversification and reflects Snap's capacity to grow revenue through a broadening of its addressable market", Wieser said. However, the company, based in Venice, California, said customers were now remaining longer on its Android version, after bugs in the software were fixed, and advertisers have taken to an advertising system that is auction based that makes it less expensive and easier to purchase ads.
The company was formerly known as Snapchat, Inc. and changed its name to Snap Inc.in September 2016. That change helped reduce friction in the buying process, as well as boost ad impressions on Snapchat by 4x year-over-year, Spiegel said.
However, the broader availability of Snapchat's inventory has corresponded with a reduction in the value of each ad. Accern also gave press coverage about the company an impact score of 44.5686932949622 out of 100, meaning that recent press coverage is somewhat unlikely to have an impact on the company's share price in the immediate future.
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According to eMarketer, Snap has seen some ad progress, but its share of the market is tiny.
"They are in the process of building credibility with Wall Street", said Rich Greenfield, an analyst at BTIG. He believes the strength was driven by small- to medium-sized businesses.
"The engine that drove the growth in the fourth quarter and will continue to drive our growth really is the auction platform". On a conference call, Snap also sounded a bit more grown up and talked about moderating expense increases and noted cash burn fell 49 percent. The shares were sold at an average price of $12.42, for a total transaction of $20,529,837.72.
But this is the first quarter in the entire year Snap hasn't missed expectations, and analysts are still sceptical about its long-term prospects.
"There is a lot of work ahead as we optimise the updated application, but our early observations support the thesis behind the new architecture and the many growth opportunities that it provides", he said.
As with the automation of its Snap Ads, the automation of Snap's Promoted Stories and Creative Tools formats will likely lead to more of these ads being sold, but for less money per ad.
After struggling to grow its audience throughout the year, Snap unveiled a significant redesign in November meant to make its messaging service less confusing for users.