Illustration: Rebecca Zisser/Axios

Snap Inc.'s stock was down 11% Tuesday in after-hours trading after the company reported it fell short on Wall Street's revenue expectations.

Yes, but: The company otherwise did pretty well. It turned its first-ever profit on an adjusted basis and grew its user base for the fourth consecutive quarter. It also provided positive guidance for the quarter ahead.

Details: Snap's user base grew to 218 million daily active users. This is a big comeback from 2018, when the company's user growth stalled for a period of time.

By the numbers, per CNBC:

  • Earnings: 3 cents per share vs. 1 cent per share forecast by Refinitiv
  • Revenue: $561 million vs. $563 million forecast by Refinitiv
  • Global daily active users (DAUs): 218 million vs. 215 million forecast by FactSet
  • Average revenue per user: $2.58 vs. $2.62 forecast by FactSet

What they're saying: “The strength in our core business gives us confidence in our long term growth and profitability and we’re excited to build on these results in 2020 and beyond," Snap Inc. CEO Evan Spiegel said in a statement Tuesday.

Between the lines: Investors were bullish ahead of earnings. JPMorgan said Tuesday that it expected strong user growth from Snap, and Deutsche Bank lifted its price target for Snap on Monday.

Flashback to Q3: Snapchat adds 7 million daily active users

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