Shares of the Santa Monica, Calif., company at last check were 4% higher at $59.35.
Snap reported a net loss of $287 million, or 19 cents a share, compared with a loss of $306 million, or 21 cents, in the year-earlier quarter. Revenue increased 66% to $770 million.
Analysts surveyed by FactSet were expecting the company to report a loss of 26 cents a share on revenue of $744 million.
Snap said daily active users increased 22% year-over-year to 280 million. Analysts had been forecasting 275.4 million, according to Bloomberg.
DAUs increased sequentially and year-over-year on both iOS (AAPL) - Get Report and Android (GOOGL) - Get Report platforms. And for the first time the majority of DAUs for the quarter were on the Android version of the application.
"We began 2021 by achieving our highest year-over-year revenue and daily active user growth rates in over three years during the quarter, and delivering positive free cash flow for the first time in Snap’s history as a public company," Chief Executive Evan Spiegel said in a statement.
Snap and other social-media companies saw usage increase as people were stuck at home during the COVID-19 pandemic.
The company has invested in new filters and augmented reality capabilities for its popular photo-sharing app as it seeks to lock in the user growth that was driven by the outbreak.
In February, Snap beat Wall Street's fourth-quarter earnings expectations.
Last week, Wedbush analyst Ygal Arounian lifted his rating on the company to outperform from neutral.
Snap is "uniquely positioned as a videocentric platform, with an augmented reality and social commerce opportunity, also centered around a younger, digitally native audience," the analyst wrote.