Snap (SNAP - Get Report)  showed encouraging trends in its first-quarter earnings report, which many analysts on Wall Street regarded as pivotal for Snap. 

Analysts were encouraged by the improvements in the previously troubled Android version of the app, as well as Snap's improved advertising technology.

Despite the positive report released after the close on Tuesday, Snap shares were down 6.83% to $11.18 a share on Wednesday morning; shares are still up more than 100% year-to-date, however. Shares initially responded favorably to the report, with a pop of as much as 10% in after-hours trading on Tuesday. 

Loss per share was 2 cents better than analyst's expectations, coming in at 10 cents, versus expectations of 12 cents. Revenue was $320 million, beating estimates of $307 million. Daily active users, which had seen negative growth in some pockets of 2018, moved to 190 million, beating analysts estimates of 187.22 million. Average revenue per user (ARPU) was $1.68, ahead of estimates of $1.62. 

Here's what analysts were saying: 

Stifel, Hold, Price Target Raised from $10 to $13

"With potential usage tailwinds like the Android update and Snap's gaming platform not in the numbers yet, coupled with growth in engagement with Discover content, we expect Snap's DAUs to continue growing sequentially throughout FY 2019," analyst Scot Devitt wrote in a note out Tuesday. "The company's ad products appear to be gaining traction with both large bands and direct response advertisers as the continue to grow in sophistication, building Snap's active advertiser base and auction density."

RBC Capital Markets, Outperform, Price Target Raised to $17

"Management was somewhat cautious on Q2 DAU Adds, though this could be conservatism," analyst Mark Mahaney wrote in a note. "We view results as confirming our upgrade call." He added that "positive monetization trends & ARPU trends" are a key driver for his free-cash-flow break-even call for 2021. 

Goldman Sachs, Neutral, Price Target: $13

"We believe the monetization growth we saw in the quarter, particularly in the U.S., was evidence of the platform's longer-term potential, particularly as the company continued to improve its direct response, where revenue more than doubled vs. 1Q18," wrote analyst Heath Terry in a note.  

MoffettNathanson, Neutral, Price Target $8

Analyst Michael Nathanson, a bear on Snap, did move his 2020 loss per share estimate to 11 cents from 12 cents. "The company is managing costs well and slowing down their free cash flow burn," Nathnason said. Snap burned $78 million, an improvement over the first quarter of 2018's cash burn of $268.3 million. 

CFRA, Hold, Price Target Raised from $8.50 to $11

"Snap delivered a new Android app at the end of Q1 with few issues," analyst Scott Kessler wrote. "We have been encouraged by recent efforts around user engagement and monetization."