Snap Q2 Results Top Street, Outlook Strong; Shares Jump 10%

(RTTNews) - Snap Inc. (SNAP) Tuesday reported a narrower loss for the second quarter that also was better than Wall Street's expectations, as revenues surged on strong user growth. The company issued a strong revenue guidance for the current quarter, sending its shares up 10 percent in after-hours trade.

California-based Snap reported second-quarter loss of $255.2 million or $0.19 per share, narrower than last year's $353.3 million or $0.27 per share.

Adjusted loss for the quarter were $0.06 per share, compared with last year's loss of $0.14 per share. Analysts polled by Thomson Reuters expected the company to report a loss of $0.10 per share for the quarter. Analysts' estimates typically exclude special items.

Revenue for the quarter surged 48 percent to $388.0 million from $262.3 million in the prior year. Analysts had a consensus revenue estimate of $359.6 million for the quarter.

"The growth in our community, engagement, and revenue is the result of several transitions we completed over the past 18 months," said Evan Spiegel, CEO. "We look forward to building on our momentum and making significant ongoing progress in each of these areas."

Snap said it added 13 million daily active users to end the second quarter with 203 million, up from 190 million in the first quarter and 188 million last year. Average revenue per user was $1.91 in the second quarter, an increase of 37 percent from $1.40 last year.

Looking forward to the third quarter, Snap expects revenues of $410 million and $435 million. Analysts currently estimate revenues of $402.19 million.

Snap closed Tuesday's trading at $14.83, up $0.68 or 4.81%, on the NYSE. The stock further gained $1.60 or 10.78% in the after-hours trade.