Snap shares jump as user growth, revenue beat estimates

Shares of Snap Inc rallied 23% on Tuesday after the Snapchat messaging app owner beat user growth and revenue forecasts as more people signed up to chat with friends and family during the coronavirus pandemic.

Daily active users (DAUs), a widely watched metric by investors and advertisers, rose 18% year-over-year to 249 million in the quarter ended Sept. 30, the company said in a statement. Analysts had expected 244 million, according to IBES data from Refinitiv.

The company said it expected continued momentum in user growth and forecast about 257 million daily active users in the fourth quarter, exceeding analysts’ current estimate of 249.81 million.

Revenue, mainly from selling ads on the app, jumped 52% to $679 million, widely beating analysts’ consensus estimate of $555.9 million.