Snap Reports Strong User Numbers for Q1

Social media company Snap has reported its first quarter financial results this week, revealing accelerating revenue growth and strong user numbers for the quarter.

Shares of the company grew in after-hours trading on Thursday as much as 6% after the results beat Wall Street’s expectations on earnings, revenue, and user growth.

For the first quarter, Snap reported an adjusted loss per share of 0 cents compared to the 6 cents that was forecast by Refinitiv. Revenue at $770 million was also better than the $743.8 million expected per Refinitiv. Globaly daily active users hit 280 million, compared to the expectation of 274.62 million per FactSet. Average revenue per user was $2.74, higher than the $2.72 waited for according to FactSet.

The company is expecting YOY revenue growth of 80% to 85% for the second quarter said company CFO Derek Andersen. The Chief Financial Officer said that Q1 marked Snap’s first-ever quarter of positive free cash flow as a public company, which came in at $126 million. That was up $131 million compared with a year prior.

The company also provided an adjusted EBITDA forecast that it will lose as much as $20 million or break even in the second quarter.
Snap’s net loss narrowed 6% to $287 million, from a loss of $306 million a year ago.

CEO Evan Spiegel also announced that Snapchat’s Android user base is now larger than its iOS user base. Spiegel has referred to the inversion as “a critical milestone that reflects the long-term value of the investment we made to rebuild our Android application.”

It’s also a significant milestone for the company because it blamed problems with its Android app for lackluster user growth in the first few years after its IPO.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.