Snap, the owner of photo-messaging app Snapchat, last night beat analysts' estimates for both user growth and revenue as the coronavirus pandemic prompted more people to use the app to connect with friends.
Daily active users (DAUs), a metric watched by investors and advertisers, rose 22% year-over-year to 265 million in the fourth quarter ended December 31.
Analysts had expected 258 million, according to IBES data from Refinitiv.
The app made the biggest gains in regions outside North America and Europe, with 55% growth in daily active users.
Revenue, which Snap generates mainly from ad sales, grew 62% to $911m, easily beating Wall Street's consensus estimate of $857.4m.
Advertisers have been drawn to Snap's large base of young users, and the company has invested in developing features that appeal to brands including Snap Map, which lets users find local businesses near them.
"As the global health crisis is addressed and the world begins to reopen, we see opportunities to help strengthen the bonds of the Snapchat community all over the world," Snap's chief executive Evan Spiegel in remarks prepared for release before an earnings call with analysts.
Snap's net loss narrowed to $113m, or eight cents per share, from $240.7m or 17 cents per share, a year earlier.
The company forecast first-quarter daily active users to grow 20% from the previous-year period to 275 million, and revenue to be between $720-740m.
Snap said Apple's planned privacy changes, which will ask iPhone users to consent to personalised ads, could present a "risk" to advertiser demand, but added it was unclear how the changes could affect Snap's business in the long-run.
