Snap surges on earnings revenue beat and Q1 user gains
Snap surged 17% after-hours after dropping nearly 4% today, on news of its Q1 results. The company reported revenue of $462 million in line with precious guidance and besting Wall Street’s tempered expectations around $430 million. EPS was -$0.08, slightly worse than analyst expectations of -$0.07 loss.
Daily active users reached 229 million in the first-quarter, representing a 20% year-over-year gain, higher than the 224.5 million users that had been expected.
“Snapchat is helping people stay close to their friends and family while they are separated physically, and I am proud of our team for overcoming the many challenges of working from home during this time while we continue to grow our business and support those who are impacted by COVID-19,” Spiegel said in a statement accompanying the release.
2019 was a redemptive year for the social media company which had seen steady declines in its share price since entering public markets. By early 2020 Snap has reached Snap’s stock price has dropped more than 30% since its last earnings release, echoing similar declines seen by other social media companies in the midst of a broader market plunge.
A positive Q1 earnings report is welcome news for the downward-trending stock.
The full impacts of COVID-19 will be fully evident in the second-quarter filings, as Q1 includes financial performance in a February and early March which were less impacted by pandemic fallout on the broader digital ad market.
This was a relatively quiet quarter for Snap in terms of product updates. Late last month, the company announced that it would be enabling Stories syndication to other apps as the company aims to make its developer platform more attractive to third-parties.
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Snap surged 17% after-hours after dropping nearly 4% today, on news of its Q1 results. The company reported revenue of $462 million in line with precious guidance and besting Wall Street’s tempered expectations around $430 million. EPS was -$0.08, slightly worse than analyst expectations of -$0.07 loss. Daily active users…
