Stephen Desaulniers | CNBC
Here’s how the company did it:
- Loss per share: 8 cents (adjusted)
- Returned: $ 462 million
- Global Daily Active Users (DAU): 229 million, up 39 million (20%) compared to last year
- ARPU: $ 2.02, up from $ 1.68 last year
The company’s revenue was $ 462 million, up more than 44% from the $ 320 million reported by the company in the first quarter of 2019.
Snap’s user base grew to 229 million active daily users, up 20% from a year ago. This represents the strongest year-over-year user growth the company has reported since the second quarter of 2017.
“Snapchat has always been focused on helping people build and maintain friendships, which is particularly important as people practice physical distance and shelter at home,” said Evan Spiegel, CEO of Snap, in his prepared remarks.
Analysts polled by Refinitiv expected a loss of 7 cents a share on $ 428.8 million in revenue for the first quarter. However, comparing Snap’s results to analysts’ estimates is not easy given the impact of the coronavirus pandemic on economies around the world.
Last month, Snap announced the launch of App Stories, which brings the company’s popular Stories feature to apps created by third-party software developers. The new functionality could help introduce Snap to more people, helping them maintain user growth that is essential to maintaining shareholder confidence and increasing the flow of advertising revenue for the business.
Social media rivals Facebook and Twitter also rose more than 2% after office hours.