Markets

Snapchat stock pops despite drop of 3 million users

August 7, 2018 / 5:03 PM EDT / CBS/AP

Snapchat's journey from start-up to tech giant

Snap Inc. on Tuesday reported a better than expected loss of $353.3 million in its second quarter, sending the stock up as high as 6 percent in after-hours trading.

The Venice, California-based company said it had a loss of 27 cents per share. Losses, adjusted for stock option expense and amortization costs, came to 14 cents per share.

That's despite a drop in active users—a first for the company. Daily active users on the platform decreased by 3 million in the quarter, to 188 million.

Average revenue per user (ARPU) increased 34 percent from the second quarter of 2017.

The results beat Wall Street expectations. A Zacks Investment Research estimate showed an expected a loss of 17 cents per share.

The company behind Snapchat posted revenue of $262.3 million in the period, also topping the estimate of $247.2 million.

For the current quarter ending in October, Snap said it expects revenue in the range of $265 million to $290 million.

Snap shares have dropped 10 percent since the beginning of the year.