Snap shares soar on better-than-expected profit and revenue

Core Viewpoint - Snap reported better-than-expected fourth-quarter results, leading to a surge in share prices during extended trading [1] Financial Performance - Revenue for the fourth quarter increased by 14% to $1.36 billion compared to the previous year [2] - Net income for the quarter was $9.1 million, or $0.01 per share, a significant recovery from a net loss of $248 million, or $0.15 per share, in the prior year [2] - First-quarter revenue is expected to be between $1.325 billion and $1.36 billion, with a midpoint of $1.34 billion, surpassing Wall Street's projection of $1.33 billion [2] Earnings Guidance - First-quarter adjusted earnings are projected to be between $40 million and $75 million, falling short of analyst expectations of $78.5 million [3] - Adjusted operating expenses for the first quarter are anticipated to grow by 11% to 12% year-over-year due to hiring, legal costs, and a seasonal shift in marketing expenses [3] Strategic Outlook - The company sees opportunities for productive investment in scaling its business, particularly in enhancing its ad platform and initiatives targeting small and medium-sized businesses [4] - Snap has committed $5 million to support communities affected by recent wildfires and plans to make further commitments over time [4] User Metrics - Daily active users for the first quarter are expected to reach 459 million, exceeding analyst expectations of 458.3 million [5] - The Snapchat+ service has grown to 14 million subscribers, up from 12 million in the previous quarter, contributing significantly to "other revenue," which grew by 131% year-over-year [6] Leadership Changes - Ajit Mohan has been appointed as chief business officer, previously serving as president of the Asia-Pacific region [7] Earnings Summary - Adjusted earnings per share were reported at $0.16, compared to the expected $0.14 [7] - Revenue was reported at $1.56 billion, slightly above the expected $1.55 billion [7] - Global daily active users reached 453 million, surpassing the expected 451.1 million [7] - Global average revenue per user was reported at $3.44, matching expectations [7]