What happened
Actions of Snap (NYSE: SNAP) jumped 9% on Friday following the release of the social media company’s solid fourth quarter results.
And
The parent company of Snapchat saw its daily active users rise 22% to 265 million. Snap’s revenue, in turn, jumped 62% to $ 911 million. This was well above the $ 857.4 million in revenue Wall Street had expected.
“Our team has been working tirelessly to help people stay close to their friends and family, even when they are physically apart, and we are proud of the strong results we deliver to our advertising partners this quarter and throughout the year,” CEO Evan Spiegel said in a press release.
Investors applauded Snap’s strong fourth-quarter growth metrics. Image source: Getty Images.
Snap reported a net loss of $ 113 million in the fourth quarter. However, the company generated its first full year of positive adjusted earnings before interest, taxes, depreciation and amortization (EBITDA). This measure of profitability increased to $ 45 million in 2020 from a loss of $ 202 million in the same period last year.
What now
Management expects Snap’s revenue to grow by about 58% year over year, to $ 730 million in the first quarter. However, Snap warned that AppleThe next privacy changes on your mobile devices could hurt your advertising business.
Still, Spiegel said Apple’s move to protect its customers’ privacy was the right thing to do. “We generally see this as a good thing for consumers, even if it is a little disturbing for advertisers in the short term,” Spiegel told CNBC.