Snap Inc. (NYSE: SNAP) released fourth-quarter financial results after markets closed Tuesday. The company said that it had $0.03 in earnings per share (EPS) and $561 million in revenue, compared with consensus estimates that called for $0.01 in EPS and $563.03 million in revenue. The same period from last year had a net loss of $0.04 per share and $389.82 million in revenue.

During the quarter, daily active users (DAU) increased to 218 million compared to 187 million in the fourth quarter last year.

At the same time, average revenue per user (ARPU) increased by 23% to $2.58, compared to the fourth quarter from last year.

Looking ahead to the first quarter, the company expects to see revenues in the range of $450 million to $470 million and an adjusted EBITDA loss between $90 million and $70 million. The consensus estimates are calling for a net loss of $0.06 per share and $461.63 million in revenue for the coming quarter.

Evan Spiegel, Snap CEO and Co-Founder, commented:

In 2019 we saw momentum across the board. We grew our community by 31 million daily active users, accelerated our revenue growth, and progressed towards profitability by improving full-year Adjusted EBITDA by 65% year-over-year. The strength in our core business gives us confidence in our long term growth and profitability and were excited to build on these results in 2020 and beyond.

Shares of Snap closed Tuesday at $18.99, with a 52-week range of $6.80 to $19.75. The stock has a consensus analyst price target of $19.44. Following the announcement, the stock was down about 12% at $16.75, in the after-hours trading session.

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