Snapchat's parent company reported flat user growth in the fourth quarter but a significant uptick in revenue.
During the final three months of 2018, Snap brought in revenue of nearly $390 million, up 36 percent from the same period the previous year.
Snap earns revenue from selling advertising on its photo-messaging app.
But despite the revenue growth, the company is struggling to add to its user base in a meaningful way. Snap said that daily active users of its app were flat at 186 million during the period. That is an improvement from a 1 percent decline in DAUs during the previous quarter.
Snap's CEO Evan Spiegel laid out a plan to stabilize the company and focus on long-term growth. "In 2018, we focused on building a foundation for Snap to scale over the long term by driving sustainable product innovation, scaling our advertising platform, and hiring the leadership team that will help us achieve our future goals," he said.
He revealed that average time spent on the platform was 30 minutes per day and that user engagement had stabilized as the company prepares to rollout updates to its Android app. Snap has said it rebuilt the Android app because it had more bugs and a worse user experience than its Apple iOS app. "We feel we have made significant progress towards our mission of contributing to human progress because we are now able to offer a higher quality content experience while simultaneously empowering people to express themselves with their close friends and family," he added.
Snap has been investing in media programming to boost time spent on its platform. Snapchat's first slate of scripted programming launched in the fall. Spiegel revealed that 40 percent of the people who watched the first episode of The Dead Girls Detective Agency went on to watch the entire season. The cartoon Bitmoji Stories, meanwhile, reached over 40 million viewers in December.
For the first quarter, Snap said it expects revenue of $285 million to $310 million.