From CNBC: 2024-04-25 18:35:48

Snap reported first-quarter results that surpassed analysts’ estimates, leading to a more than 23% surge in shares. Revenue reached $1.19 billion, beating projections of $1.12 billion, with 422 million daily active users generating $2.83 in average revenue per user. The company experienced a 21% increase in revenue from the previous year, marking a return to double-digit growth.

Snap attributed its revenue growth to improvements in the advertising platform and demand for direct-response advertising solutions. The company’s advertising revenue reached $1.11 billion in the quarter, with “Other Revenue” driven by Snapchat+ subscribers hitting $87 million. Adjusted EBITDA exceeded expectations at $46 million, primarily due to operating expense discipline and accelerated revenue growth.

Despite significant growth, Snap fell behind Meta, which reported 27% growth in the first quarter. Snap’s net loss narrowed to $305.1 million, or 19 cents per share. For the second quarter, Snap anticipates revenue between $1.23 billion and $1.26 billion, with projected daily active users reaching around 431 million. Infrastructure costs per DAU are expected to range from 83 cents to 85 cents for the year.

Snap highlighted a rise in user engagement, especially with Spotlight and Creator Stories. Time spent watching Spotlight content surged 125% year over year. The company previously announced a 10% reduction in its global workforce and now expects headcount and personnel costs to grow modestly throughout the year.



Read more at CNBC:: Snap (SNAP) Q1 2024 earnings