Snapchat User Growth Accelerates After Android Fix

Snapchat’s growth accelerated after the company rolled out an improved version of its Android application, according to Bloomberg.

Snap said an average of 203 million users logged in daily in the second quarter, well ahead of the 191.7 million estimated by analysts. It was a sign of recovery after a rocky period, and shares jumped more than 13% in late trading following the report.

After a disastrous redesign that alienated users last year and the turnover of most of its executive leadership team, Snap is finally delivering on promises that a new version of its app for the Android mobile system would shore up user growth. The company also gave an upbeat forecast, saying it expects daily users of 205 million to 207 million in the third quarter.

Investors have recently turned more optimistic about the company’s prospects, and the stock has more than doubled this year. In the second quarter, the company’s net loss narrowed to $255.2 million, or 19 cents a share, from $353.3 million, or 27 cents, a year earlier. Snap also forecast third-quarter sales of $410 million to $435 million, exceeding the average analyst estimate of $402.9 million.

Second-quarter sales jumped 48% to $388 million, the company said in a statement, topping the $360.5 million average projection. On a call with investors, Snap made the case that it still has a lot of room to grow, since average revenue per user is still a fraction of what Facebook and Twitter can command.