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Snap is surging after reporting a smaller-than-expected loss

Aug 8, 2018, 01:55 IST

Markets Insider

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Shares of Snap rose more than 9% in after-hours trading Tuesday following the company's release of second-quarter earnings.

Snap said it lost an adjusted $0.14 per share in the quarter ended June 30, where analysts had expected a loss of $0.18 per share.

Revenues were also better than anticipated, coming in at $262 million where analysts had expected $250 million

Despite the solid financial numbers, Snap reported its first ever decline in sequential daily active users. The company also said its cash burn was up to $234 million from $229 million in the same quarter of 2017.

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"We are excited by the progress we have been making and are optimistic about the opportunities ahead as we continue to invest in innovation," Evan Spiegel, Snap's founder and chief executive, said in a press release.

Shortly after the earnings report, Saudi Prince Alwaleed tweeted that he had purchased a 2.3% stake in the company for $250 million.

Shares of Snap are down 46% from where it first traded following its initial public offering in March 2017.

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