By Yasin Ebrahim
Investing.com - Snap surged in after-hours trading Tuesday after the company reported an unexpected third-quarter profit amid a jump in user growth.
Snap Inc (NYSE:SNAP) surged 16%.
The company reported EPS of 1 cent, confounding expectations for a loss of 5 cents, while revenue of $679 million topped the consensus estimate of $555.9 million.
Daily active users, or DAUs, a key performance metric for social media companies, jumped 18% to 249 million for the quarter year-on-year, topping estimates of 243.7 million and guidance of 242 million, while average revenue per user was $2.73, well above consensus of $2.27.
Total daily time spent by Snapchatters watching shows increased by over 50% year-over-year in Q3 2020.