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Snap Post Narrow Loss, Strong Guidance

Snap says daily active users rose 23% year over year.
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Shares of Snap  (SNAP) - Get Report jumped Thursday after the company reported a narrower-than-expected second-quarter loss on revenue that also topped estimates.

The social media company reported a net loss of 10 cents per share on revenue that increased 116% to $982 million. Analysts polled by FactSet were expecting a second-quarter net loss of 18 cents per shar eon revenue of $845.6 million. 

"Our second quarter results reflect the broad-based strength of our business, as we grew both revenue and daily active users at the highest rates we have achieved in the past four years," said CEO Evan Spiegel in a statement.

The company said it is "pleased" with the progress the team is making with its augmented reality platform.

The company increased its number of daily daily active users 23% year over year to 293 million. In the previous quarter, the company reported reaching 280 million daily active users.

The company leaned into its original programming platform, airing eight new "Snap Originals" shows and launched 177 new "Discover Channels."

For the third quarter, the company expects revenue to increase between 58% and 60% year over year to between $1.07 billion and $1.085 billion. Analysts surveyed by FactSet are expecting revenue of $1.014 billion. 

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Snap shares were rising 12.8% after hours to $71.06 per share. 

Elsewhere, social media stocks were mixed Thursday.

The Global X Social Media ETF  (SOCL) - Get Report traded flat at $68.74.

Among notable social media stocks, six rose while five fell.

ANGI Homeservices  (ANGI) - Get Report shares rose 43 cents, or 3.73%, to $11.97.

Groupon  (GRPN) - Get Report shares fell $1.22, or 3.1%, to $38.09.

The Nasdaq Composite Index rose 52.64 points, or 0.4%, to 14,684.60.