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Snap Inc. (NYSE: SNAP) published its earnings report for the fiscal first quarter on Thursday that topped analysts’ estimates for earnings and revenue.

Snap shares were reported close to 5% up in after-hours trading on Thursday. Including the price action, the stock is now exchanging hands at £43.26 per share versus a year-to-date high of £50.88 per share in the last week of February. In comparison, Snap had started the year 2021 at a lower £35.81 per share.

Snap’s Q1 financial results versus analysts’ estimates

Snap said that its net loss in the first quarter came in at £207.20 million that translates to 13.72 pence per share. The social media firm generated £556.11 million of revenue in Q1 that represents an annualised growth of 66%. In the prior quarter (Q4), Snap had recorded £82.64 million of net loss.

According to FactSet, experts had forecast the company to post £537.33 million of revenue in the recent quarter. Their estimate for per-share loss stood at a broader 15.17 pence. On an adjusted basis, Snap broke even in the first quarter. FactSet consensus, in comparison, stood at 3.61 pence of adjusted loss per share.

Chief Executive Evan Spiegel commented on the earnings report on Thursday and said:

“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.”

In separate news from the United States, Mattel said on Thursday that its sales jumped 47% in the fiscal first quarter.

Snap reports 280 million average daily active users

The Santa Monica-based firm reported 280 million average daily active users (DAUs) in Q1 – a 22% increase from last year. According to FactSet, analysts had anticipated 274.6 million DAUs instead.

For the fiscal second quarter, Snap now forecasts up to £606.66 million of revenue. Experts, on the other hand, are calling for £595.11 million of revenue for Snap in Q2. According to analyst Nazmul Islam of eMarketer:

“Snapchat being used on more android devices for the first time is a good sign for continued growth in the future.”

Snap performed massively upbeat in the stock market last year with an annual gain of more than 200%. At the time of writing, the New York Stock Exchange-listed firm is valued at £62.15 billion.

The post Snap Inc beats Wall Street estimates in the fiscal first quarter appeared first on Invezz.



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