Snap stock soars after strong Q1 user, revenue growth
Snap's stock price jumped 20% in after-hours trading after the company posted strong Q1 results, beating analyst estimates with $462 million in revenue and just missing earnings estimates with a $0.08 loss per share.
Why it matters: Like other ad-supported businesses, Snap is vulnerable to a pullback in advertising spend, though the company is also in a position to see more activity as users spend more time at home during the coronavirus pandemic and need entertainment and online socializing.
By the numbers:
- Loss per share: $0.08 adjusted, compared to $0.07 expected.
- Revenue: $462 million, compared to $431 million expected.
- Daily active users: 229 million, up 39 million or 20% year-over-year.
- Average revenue per user: $2.02, up 20% year-over-year.
- On average, more than 4 billion Snaps were created each day this quarter.
- Total daily time users spent watching Discover content increased by more than 35% year-over-year.
Yes, but: The company warned that it can't offer a financial forecast for the next quarter due to the volatility of the coronavirus pandemic's impact on the economy.