Snap Inc., the parent company of social media platform Snapchat, recently announced its first-quarter financial results, prompting a surge in its stock price. The company's quarterly earnings of 3 cents per share exceeded analyst predictions of a loss of 5 cents per share, while its sales for the quarter reached $1.195 billion, surpassing expectations by 6.74% and marking a notable increase from the previous year.
Snap's success in the first quarter was further highlighted by the growth in its user base, with 422 million daily active users, showing a 10% year-over-year increase. Additionally, the time users spent engaging with Spotlight content saw a substantial rise of over 125% compared to the previous year. The company also experienced significant growth in its Snapchat+ subscribers, which more than tripled year-over-year, reaching over 9 million subscribers in the first quarter.
CEO of Snap, Evan Spiegel, credited the company's community and advertising solutions for driving improved financial performance, making Snap a valuable partner for businesses across the board. Looking ahead, Snap provided guidance for the second quarter, expecting revenues between $1.225 billion and $1.255 billion, projecting a continued growth trajectory for its global community.
Following the positive financial report, Snap's stock price saw a notable increase after hours, rising by 24.5% to $14.23 at the time of publication on Thursday, according to Benzinga Pro. This surge reflects investor confidence in Snap's performance and growth prospects moving forward.