Shares of Snapchat parent Snap popped 26% in late trading after the social media network said revenue jumped more than expected last quarter to $1.95 billion, up 21% from 2023. The number, and the outlook for the current quarter were nicely above Wall Street forecasts, as were daily active users, which hit 422 million.
Snap shares tend to be volatile — up or down — in response to quarterly earnings and today is no exception.
The company said the upbeat number was driven by improvements in its advertising platform and an increase in demand for its direct-response advertising offerings. The company has hard a hard time competing with giants Facebook and has been working on its platform for years.
Snapchat+ grew to more than 9 million subscribers in Q1.
Higher revenue drove adjusted EBITDA of $46 million and free cash flow of $38 million in
“The value we provide our community and advertising partners has translated into improved financial performance,” said CEO Evan Spiegel in a statement. “Our large, growing, and hard-to-reach community, brand-safe environment, and full-funnel advertising solutions have made us an increasingly important partner for businesses of all sizes.”
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