Apr 21, 2020 - Economy & Business

Snap stock soars after strong Q1 user, revenue growth

Illustration: Axios Visuals

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.

Go deeper

Trump's troubles grow, spread

Photo: Tasos Katopodis/Getty Images

President Trump is confronting the most dire political environment of his presidency, with his support dropping fast from Texas to Wisconsin, even among his base of religious and older voters. 

Why it matters: Top Republicans tell Axios that Trump's handling of the nation's civil unrest, including his hasty photo op at St. John's Church after the violent clearing of Lafayette Park, make them much more worried about his chance of re-election than they were one week ago.

Social media takes on world leaders

Illustration: Aïda Amer/Axios

Social media companies are finally beginning to take action on posts from world leaders that violate their policies, after years of letting them mostly say whatever they wanted unfiltered to millions of people.

Why it matters: Government officials are among the users most likely to abuse the wide reach and minimal regulation of tech platforms. Mounting pressure to stop harmful content from spreading amid the coronavirus pandemic, racial protests and a looming U.S. election has spurred some companies to finally do something about it.

Coronavirus cases spike in Texas and Arizona

Data: The COVID Tracking Project, state health departments; Map: Andrew Witherspoon, Sara Wise, Naema Ahmed/Axios

Texas, Arizona and Oregon saw significant spikes last week in new coronavirus infections, while cases also continued to climb in a handful of states where steady increases have become the norm.

Why it matters: Nationwide, new cases have plateaued over the past week. To get through this crisis and safely continue getting back out into the world, we need them to go down — a lot.