After U.S. markets closed yesterday afternoon, Snap Inc. (SNAP:NYSE) announced financial results for the quarter ended March 31, 2020.
The company highlighted in the report that revenue in Q1/20 increased by 44% year-over-year to $462 million and the number of daily active users (DAUs) increased by 20% year-over-year to 229 million. The firm stated that operating cash flow improved by $72 million to $6 million in Q1/20, compared to Q1/19. The company additionally advised that it had a net loss of $306 million in Q1/20, which was a $4 million improvement over Q1/19.
The company's CEO Evan Spiegel commented, "We are grateful for the opportunity to serve our community and partners during this difficult time...Snapchat is helping people stay close to their friends and family while they are separated physically, and I am proud of our team for overcoming the many challenges of working from home during this time while we continue to grow our business and support those who are impacted by COVID-19."
The firm indicated that it increased the number of DAUs to 39 million in Q1/20 compared to Q1/19 and that DAUs increased sequentially and year-over-year on both iOS and Android platforms and in all of the markets where it operates. The company pointed out that it averaged greater than 4 billion "Snaps" per day in Q1/20 and that the time an average user spends on the platform increased by over 35% year-over-year in Q1/20.
Snap said that it has strengthened its ad platform to drive improved outcomes for advertisers and thus has doubled the amount of money committed via upfronts from advertisers in 2020 versus 2019.
The company advised that due to uncertainties surrounding the COVID-19 pandemic and rapidly shifting market conditions it will not provide Q2/20 revenue or Adjusted EBITDA forecasts.
Snap Inc. is headquartered in Santa Monica, Calif., and stated that it sees reinventing the camera as a significant opportunity to improve people's lives and communication. The firm's primary product is Snapchat, a camera application that helps people to communicate through short videos and images known as a Snap. The company claims that it aims to empower people to live in the moment and express themselves while learning about the world and having fun.
Snap Inc. started the day with a market capitalization of around $17.7 billion with approximately 1.42 billion shares outstanding and a short interest of about 7.5%. SNAP shares opened 22% higher today at $15.18 (+$2.74, +22.03%) over yesterday's $12.44 closing price. The stock has traded today between $14.85 and $16.47 per share and is currently trading at $16.43 (+$3.99, +32.07%).
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