Evan Spiegel, CEO of SNAP Inc.
Stephen Desaulniers | CNBC
Snap on Tuesday announced its earnings results for the first quarter, sending its share price up more than 20% in after-hours trading.
Here’s how the company did:
- Loss per share: 8 cents (adjusted)
- Revenue: $462 million
- Global daily average users (DAUs): 229 million, up 39 million (20%) from last year
- ARPU: $2.02, up from $1.68 last year
The company’s revenue came in at $462 million, up more than 44% from the $320 million the company reported in the first quarter of 2019.
“”Snapchat has always been focused on helping people build and maintain their friendships, which is especially critical as people practice physical distancing and shelter in their homes,” said Snap CEO Evan Spiegel in his prepared remarks.
Analysts surveyed by Refinitiv had expected a loss of 7 cents per share on $428.8 million in revenue for the first quarter. However, comparing Snap’s results against analysts’ estimates is not straightforward given the coronavirus pandemic’s impact on economies around the world.
Snap last month announced the launch of App Stories, which brings the company’s popular Stories feature to apps created by third-party software developers. The new feature could help introduce Snap to more people, helping them company maintain the user growth that is critical to maintaining shareholder confidence and growing the company’s advertising revenue stream.
Social media rivals Facebook and Twitter each rose more than 2% after hours as well.