On Tuesday, Snap Inc. (NYSE: SNAP), the maker of the very popular Snapchat app, announced its financial results for the quarter ended 31 March 2020.
Here are some key highlights from Snap’s Q1 2020 report:
- 20% year-over-year increase of Daily Active Users to 229 million
- Q1 revenue jumped 44% year-over-year to $462 million
- Q1 operating cash flow reached $6 million, which is a 109% year-over-year increase
Snap CEO Evan Spiegel had this to say:
“We are grateful for the opportunity to serve our community and partners during this difficult time.
“Snapchat is helping people stay close to their friends and family while they are separated physically, and I am proud of our team for overcoming the many challenges of working from home during this time while we continue to grow our business and support those who are impacted by COVID-19.”
With regard to the current COVID-19 pandemic, the company goes on to say:
“Communication with friends increased by over 30% in the last week of March compared to the last week of January, with more than a 50% increase in some of the geographies that were most impacted.
“In honor of World Health Day, we launched a Lens in 11 languages and 33 countries to encourage people to donate to the World Health Organization’s relief efforts.
“We have published over 700 Discover editions featuring up-to-the-minute coverage on COVID-19 from our content partners, our in-house news teams, and agencies like the CDC and WHO.”
According to a report in Investor’s Business Daily, although Snap reported “an adjusted loss of 8 cents per share on revenue of $462 million”, Wall Street analysts had expected “a loss of 20 cents on revenue of $427 million, according to FactSet.”
Beating analysts’ expectations has helped Snap surge around 20% in after-hours trading, and at press time (10:53 UTC on April 22), SNAP is trading at $14.87, up $2.43 (or 19.53%), as you can see from the YTD price chart below from Google Finance:
Snap Stock Price Chart Courtesy of Google Finance
