What happened [Sharesor Snap (NYSE: SNAP) have skyrocketed today, up at 27% as or 11:30 am.m. EST, after the company reported fourth-quarter earnings results. The Snapchat Operator's Net Loss While The User Base Stabilized
Revenue in the fourth quarter increased 36% to $ 389.8 million, topping the Street's forecast of $ 377.5 million in sales. The company's GAAP net loss narrowed to $ 191.7 million. On a non-GAAP basis, Snap posted a net loss of $ 59.5 million, or $ 0.04 per share. Adjusted EBITDA came to negative $ 50.4 million. Snap said last month that revenue and adjusted EBITDA should be "slightly favorable to the top end" of guidance.
Snap reported its first user decline last summer, blaming the controversial redesign that the company had rolled out in early 2018. The self-proclaimed "camera company" has now made progress in retaining core users. Investors and analysts are optimistic that Snap could finally be put together in turnaround.
For the first quarter, Snap's outlook for revenue revenue of $ 285 million to $ 310 million, with adjusted EBITDA or negative $ 140 million two negative $ 165 million. Evan Niu, CFA has no position in any of the stocks mentioned. The company does not expect it to decline sequentially in the first quarter. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.