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Snapchat Gains 13 Million Users in Q4, Stock Rallies on 42% Revenue Jump and Earnings Beat

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variety.com

Todd Spangler NY Digital EditorSnap shares soared more than 40% in after-hours trading after the company beat Wall Street financial forecasts and netted more Snapchat users than expected.The company reported an average of 319 million daily active users for the fourth quarter of 2021, a gain of 13 million over 306 million in the third quarter.

Snap also topped earnings estimates, although those were lowered after Snap warned of a Q4 revenue slowdown.Revenue for the quarter increased 42% to $1.30 billion, and it was Snap’s first quarter of positive net income as a public company — reporting $22.6 million on the bottom line.

Adjusted earnings improved 97% to $327 million in Q4 2021, representing adjusted earnings per share of 22 cents. Click here to sign up for Variety’s free Strictly Business newsletter covering earnings, financial news, and more.On average, analysts projected revenue of $1.2 billion and earnings of 10 cents per share for Q4, according to Refinitiv.For Q1 2022, Snap estimates revenue will be between $1.03 billion and $1.08 billion with adjusted EBITDA to be approximately breakeven.“2021 was an exciting year for Snap and we made significant progress growing our business and serving our global community,” CEO Evan Spiegel said in announcing earnings. “The strength of our core business has enabled us to accelerate our investments in augmented reality, transforming the way that the Snapchat community experiences the world through our camera.”At the end of 2021, Snap inked multiyear renewals with Disney, NBCUniversal and ViacomCBS, which encompassed both returning and new shows for Snapchat Discover.

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