Feb. 6 (UPI) -- Stocks for Snap, Inc., the parent company of Snapchat, increased 20 percent Tuesday after fourth-quarter results exceeded Wall Street expectations for the first time.
The social media app generated revenue of $285.7 million -- a 72 percent year-over-year increase -- in the fourth quarter of 2017. The revenue numbers were more than $30 million over the $253 million that had been expected.
Snap also increased its daily active users by 8.9 million, a 5 percent increase, bringing its total to 187 million, the company said in an earnings release.
Analysts said Snapchat bounced back efficiently after taking a hit from disappointing sales of its highly touted Spectacle glasses, which didn't catch on with users despite a big push to market the product.
Snap also redesigned its app's interface to make it easier to use and more accessible to older users, which could explain the increase in daily active users.
"This quarter was a major step in the right direction for the company," said Daniel Ives, an analyst with GBH Insights.