Oct 21, 2020 (Baystreet.ca via COMTEX) -- Snap's /zigman2/quotes/205087158/composite SNAP +0.31% stock price soared more than 22% after hours on Tuesday as the company posted an unexpected, adjusted profit along with positive user and revenue growth in its third-quarter earnings.
The company's net loss fell to $200 million, down nearly 12% from $227 million net loss last year.
Snap reported 249 million daily active users, up nearly 4% from the 238 million the company reported in July. That figure is up nearly 19% compared to the 210 million daily users the company reported a year prior.
"The adoption of augmented reality is happening faster than we had previously anticipated, and we are working together as a team to execute on the many opportunities in front of us," Snap CEO Evan Spiegel said in a statement.
Snap said it used the third quarter as an opportunity to engage with brands that were looking "to align their marketing efforts with platforms who share their corporate values."
That coincides with the StopHateForProfit Facebook ad boycott in which more than 1,000 advertisers paused ads on the social network during the month of July in boycott of the company's hate speech and misinformation policies.
Snap expects year-over-year revenue growth of 47% to 50% for the fourth quarter, Snap chief financial officer Derek Andersen said in prepared remarks. The company also expects to reach approximately 257 million DAUs in the fourth quarter, Andersen said.
Snap, however, also expects year-to-year expense growth to be higher in the fourth quarter than it has observed year to date, he said.
Snap's upward momentum continued Wednesday, with prices gaining $6.44, or 22.6%, to $34.89.
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