Snap shares soar on higher-than-expected revenue, subscription

Shares of Snap Inc SNAP.N recorded a 23% gain on Tuesday. This followed after the company’s user growth and revenue surpassed expectations, with more people subscribing to Snapchat amid the coronavirus crisis.

The company’s daily active users (DAUs), a metric that gauges user engagement and traction on a regular basis, advanced 18% year-on-year to 249 million in the quarter ended Sept. 30. The figure placed above the 244 million outlook rendered by analysts.

Meanwhile, Snap’s revenue advanced 52% to $679 million, surpassing the $555.9 million growth expected by analysts.   As the company greatly profits from advertisements, it positioned itself as a safe place for brands wanting to advertise by providing one-on-one messages which automatically disappear after being read.