Snap Explodes After Posting a Smaller Q1 Loss Than Expected

Shares of Snap were soaring as much as 11% in after-hours trading on Tuesday after releasing earnings results that beat what Wall Street was expecting.

The company behind SnapChat reported a loss of 10 cents a share which was two cents better than what analysts had expected.

Shares didn’t keep those gains for long and were fading as traders digested the results.

For the first quarter, the company also reported revenue of $320 million compared to $307 million that was
expected. Global daily active users came in at 190 million while only 187.22 million were expected according to FactSet. ARPU was $1.68 beating the $1.62 expectation.

In the last quarter Snap had reported 186 million active users. “In the first quarter we delivered strong results across our business with growth in daily active users and revenue,” said CEO Evan Spiegel.

“As we look towards the future, we see many opportunities to increase our investments, and will continue to manage our business for long-term growth,” Spiegel also said.

Spiegal also said, “As of the end of Q1, our new Android application is available to everyone. Compared to the prior version it is 25% smaller, opens 20% faster on average, and is modularized to allow for efficient ongoing innovation. On some of the lowest performing devices this resulted in a 6% increase in the number of people sending Snaps, within the first week of upgrading to the new Android build.”

‘While these earlier results are promising improvements in performance and new user retention will take time to compound and meaningfully impact our top line metrics. There are billions of Android devices in the world that now have access to an improved Snapchat experience and we look forward to being able to grow our Snapchat community in new markets.”

Shares of the stock are up over 100% YTD.