Snap Stock Rises After Increased Daily Active User Growth

Snap, the parent of Snapchat, reported first-quarter earnings that missed estimates on stronger-than-forecast revenue. Daily average users grew by 20%.
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Snap Inc.  (SNAP) - Get Report missed analysts' first-quarter earnings estimates but posted revenue ahead of forecasts as daily active users rose 20%.

The Santa Monica, Calif., photography app platform reported a loss of 21 cents a share on revenue of $462.5 million.

Snap had been expected to report a loss of 20 cents a share on revenue of $423.7 million, based on a FactSet survey.

For the year-earlier period, the company posted a loss of 23 cents a share on sales of $320.4 million. 

Snap said its daily active users were 229 million in the first quarter, up 39 million, or 20%, year-over-year. The numbers cover the period through March 31, when most coronavirus shelter-in-place orders had been in place for only about a week.

"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," the company said in a statement. 

Snap shares at last check-in after-hours trading surged 19% to $14.79. 

Snap said it would not be providing financial guidance for the second quarter "given the uncertainties related to the ongoing COVID-19 pandemic and the rapidly shifting macro conditions."

The company said it has seen more than a 30 times increase in daily downloads of Snap Camera, a desktop app, "as people turn to videoconferencing and livestreaming to connect with friends and family."

Yesterday, Bret Kenwell gave TheStreet readers a guide on how to trade Snap once it reports its earnings.