Snap shares surged last night after it reported rising revenue, narrowing losses and a stable number of people using its Snapchat smartphone image-themed social network.
The Southern California-based company said it lost $192m on revenue of $390m in the final three months of last year.
This compared with a loss of $350m on revenue of $286m the same time a year earlier.
"We ended the year with user engagement stabilizing and have started rolling out the new version of our Android application to a small percentage of our community," chief executive Evan Spiegel said.
"We are substantially closer to achieving profitability, as we have maintained a relatively flat cost structure across the past five quarters while growing full-year revenue," he added.
Initially known for its disappearing messages, Snapchat has been ramping up new kinds of video content with a focus on reaching young smartphone users.
Snap shares jumped more than 17% to $8.25 in after-market trades that followed release of the earnings figures.
Snap said that even though its user base has been little changed it is connecting more with users, especially youth.
It said its premium mobile ads reached 70% of 13 to 34-year-olds in the US and that more people are watching its new video content.
