Snap Inc. (NYSE: SNAP | SNAP Price Prediction) released first-quarter financial results after markets closed Tuesday. The company said that it had a net loss of $0.08 per share and $462 million in revenue, compared with consensus estimates that called for a net loss of $0.07 per share and $431.43 million in revenue. The same period from last year had a net loss of $0.10 per share and $320.43 million in revenue.
During the quarter, daily active users (DAU) increased to 229 million compared to 190 million in the first quarter last year. On average, more than 4 billion Snaps were created each day in the first quarter of 2020.
At the same time, average revenue per user (ARPU) increased by 20% to $2.02, compared to the first quarter from last year.
Snap has declined to issue guidance for the second quarter citing the uncertainties of COVID-19. The consensus estimates are calling for a net loss of $0.05 per share and $428.5 million in revenue for the coming quarter.
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Evan Spiegel, Snap CEO and Co-Founder 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.
Shares of Snap closed Tuesday at $12.45, with a 52-week range of $7.89 to $19.75. The stock has a consensus analyst price target of $16.15. Following the announcement, the stock was up about 16% at $14.41, in the after-hours trading session.
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