On Tuesday, Snap Inc. ( Snapchat ) released the financial results for its fourth quarter of 2018 (between October and December) with incredibly positive numbers, since Snapchat is not only no longer losing users, as well as the revenue generated in the period, was higher than the analysts’ expectations.
For the first time since the beginning of 2018, the company did not record a decline in the number of daily active users, staying with the same 186 million of the previous quarter. The company’s daily user peak in 2018 was 191 million at the end of the first quarter in March.
In revenues, the company raised a total of US $ 390 million in the period, an increase of 36% over the previous period, and above expectations of US $ 378 million of shareholders. Despite the growth, the company is still operating on the negative and ended the quarter with a loss of $ 192 million.
In a press release, Snap Inc. said the results of the new Android app are promising, especially on more basic handsets, and that it should cut the time needed to start Snapchat by 20%. Analysts believe that improving the Android app is the first step in the company’s recovery, as it could help increase the number of users in less developed countries, as today, 75% of the app’s user base is in the North America and Europe.
In a statement to shareholders, Snap CEO Evan Spiegel said the company is moving closer to profitability and maintaining a relatively low operating cost throughout the year has allowed the company to grow 43 percent in 2018. Spiegel also recalled that today there are about 2 billion Android users who do not yet use Snapchat, and if Snapchat’s redesign for the system can ensure that only a small percentage of that audience starts using application, this will be enough for the company to stop operating at a loss and make a profit.