Snap shares hit record high as revenue more than doubles

Snap Inc (NYSE:SNAP) shares briefly hit a record high in early deals on Wall Street on Friday after the disappearing messages app reported that revenues had more than doubled in its second quarter. In its results reported after the closing bell on Thursday, the social networking firm reported that adjusted earnings (EBITDA) for the three months had improved by US$213mln to US$117mln, or US$0.10 per share, while revenues had surged 116% to US$982mln. The earnings blew past analyst estimates, which had been predicting a US$0.01 loss per share for the period. The group also said its average revenue per user (ARPU) jumped 76% year-on-year (YOY) to US$3.35, while the total number of daily active users had increased 23% to 293mln. Snap also forecast strong growth going forward, forecasting that revenues in its third quarter will increase by between 58% to 60% YOY to between US$1.07-US$1.08bn. Adjusted EBITDA, meanwhile, is predicted to be between US$100-US$120mln compared to US$56mln in the prior year. “Our second quarter results reflect the broad-based strength of our business, as we grew both revenue and daily active users at the highest rates we have achieved in the past four years. We are pleased by the progress our team is making with the development of our augmented reality platform, and we are energized by the many opportunities to grow our community and business around the world”, Snap chief executive Evan Spiegel said in a statement. Shortly after Friday’s opening bell, the company’s shares jumped to a record high of US$78.06 before dipping back to US$76.75 in mid-morning, although still up 22% on Thursday’s close. --Adds share price information--