Snapchat pleases shareholders after a turbulent 2018

After months in decline, Snap has clawed back revenues and retained social media users on the image sharing platform

Snap, the owner of Snapchat, has reported a stable 2018, pleasing Wall Street and shareholders.

While the overall number of users engaging with the photo messaging app stayed flat, at 186 million, the steady results helped shares soar by 22%.

Last year the company’s controversial redesign contributed to a 17% drop in sales, and put off some advertisers and users.

In a bid to turn around declining figures, Snap struck off more than 120 employees last year, its second round of job cuts in 12 months.

However, Q4 revenues rose by 36% to US$390m, with the full year up by 43% to $1.2bn.

Evan Spiegel, CEO of Snap said the company is “substantially closer” to achieving its profit goals.

He said: “We focused on building a foundation to scale the business over the long-term by driving sustainable product innovation, scaling our advertising platform, and hiring the leadership team that will help us achieve our future goals.

“We ended the year with user engagement stabilising and have started rolling out the new version of our Android application to a small percentage of our community.”

Companies