Snapchat stocks soared by 22 percent on Tuesday after its parent company Snap exceeded expectations for the first time as a public company, Geekwire reported.
Helping things along is the uptick in Snap's daily active users, which jumped to 8.9 million new users in the fourth quarter, the most recorded since 2016's third quarter.
This suggests that the redesign of Snapchat that was unveiled in November by Snap CEO Evan Spiegel is having the desired effect on investors.
Fortune noted that, since its public launch in March, Snap has failed to impress investors with its slowing user growth but the revamped version of the app seeks to simplify navigation and include tools that allow user to share content beyond their social circle.
The company's fourth quarter earnings indicate a 72 percent increase in sales from a year ago, posting $285.7 million in revenue and a loss of $350 million, according to The Verge.
This is significantly higher than analysists expected, with a forecast sitting at $255 million in sales and a loss of $405 million.
"Our business really came together toward the end of last year," said Spiegel on Tuesday, according to CNN.
The CEO further noted his company was going to focus less on hiring new staff and more on increasing productivity.
Over the last two years Snap has employed 2,400 people but Spiegel said that, while it was initially important to build its foundation of staff to keep up with the growth of the business, the plan was now to "unlock substantially more productivity," Geekwired noted.
"As such, we plan to moderate the growth of our team over the next year and focus on making sure that we have the right team, leadership, and organizational practices in place to support our culture and our mission," he said.
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