Snap stock shot up as much as 21 percent in retrospect on Tuesday after beating analysts' expectations across the board.
"We ended the year with the stabilization of user engagement and have begun to roll out the new version of our Android application to a small percentage of our community, says CEO Evan Spiegel on Tuesday in a statement.
Snap was able to maintain its user base of 186 million daily active users, flat from the previous quarter. Analysts expect the company's user base to continue to shrink as it had in the past two quarters.
The promising results come at a crucial time for the Los Angeles technology company, which had a rough fourth quarter.
The company saw rival Instagram emerging as the most popular social platform among teenagers, according to the Piper Jaffray report in October. This change in ranking has coincided with a continued decline in Snapchat's user base.
During the quarter, we also had a number of important business departures, including CFO Tim Stone, which the company announced last month, will leave company. Stone joined Snap less than a year ago.
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