Snap shares gain 25% after posting double-digit growth in Q1
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The news: Snap shares surged in after-hours trading on the Nasdaq after the Snapchat owner posted double-digit growth in Q1 revenue and daily active users, while narrowing its net loss.
The numbers: Revenue climbed 21% year on year to USD1.195 billion ($1.83 billion), with the company's net loss narrowing from USD329 million to USD305 million.
Daily active users increased 10% compared to the prior corresponding period, growing to 422 million.
Snap said its Q2 guidance was built on the assumption that daily active users would rise to 431 million during the next quarter. Its Q2 revenue guidance range was USD1.225 billion to USD1.255 billion, implying a year-on-year revenue growth of 15% to 18%.
Meanwhile, adjusted EBITDA was estimated to be between USD15 million and USD45 million for the second quarter, having totalled USD46 million in Q1.
Snap shares ended after-hours trading 25% higher at USD14.25 after the results were released.
The context: Snap said the growth in its Snap Star program, which allowed creators to share advertising revenue, had been an important driver of engagement in North America. Snap also introduced new tools for creators during the March quarter, including access to AI-powered augmented reality (AR) features.
The company said it continued to invest in its AR platform, including generative AI models and automation for the creation of new machine learning and AI lenses.
Snap shares plunged in February, after results for the company's December quarter missed analysts' expectations, following news that 10% of its global workforce would be cut.
The source: Snap earnings release
