Snap Inc’s (NYSE: SNAP) fourth quarter 2019 topline results fell short of the market’s expectations and resulted in more than 10% decline in its stock price during the after-hours. The company reported adjusted earnings of 3 cents per share on revenue of $561 million. On average, analysts expected Snap to earn $0.01 per share on revenue of $563.03 million for the quarter ended December 31, 2019.
On a GAAP basis, net loss increased $49 million to $(241) million in Q4 2019, compared to the prior year. Net loss included $100 million of non-recurring legal charges in the recently ended quarter.
For the fourth quarter of 2019, the Santa Monica, California-based company’s daily active users (DAUs) grew 17% year-over-year to 218 million. Snap has been investing in developing new features and capabilities to drive user growth and engagement.
DAUs increased sequentially and year-over-year in North America, Europe, and Rest of the World and also on each of iOS and Android platforms.
For the first quarter of 2020, Snap projected revenue to be between $450 million and $470 million.
Commenting on the full-year results, CEO Evan Spiegel said, “In 2019 we saw momentum across the board. We grew our community by 31 million daily active users, accelerated our revenue growth, and progressed towards profitability by improving full-year Adjusted EBITDA by 65% year-over-year.”
SNAP stock, which reached a new yearly high ($19.76) ten days back, has gained 28% in the last three months and 173% from this time last year.