Stock in Snapchat's parent company, led by CEO Evan Spiegel, rose over 17 percent in after-hours trading as usage grew during the coronavirus pandemic.
Snapchat’s parent company on Tuesday reported user growth rising 20 percent to 229 million daily active users during the first quarter of the year, compared to usage for the same period last year.
Snap Inc., which owns the messaging app, saw daily active users rise from 218 million at the end of the previous quarter, and 190 million at the end of the first quarter last year. During the latest quarter, usage grew during the novel coronavirus pandemic as people sheltered in their homes.
Overall revenues jumped 44 percent to $462 million, compared to 2019, while the diluted net loss per share came to 8 cents. That beat an analyst forecast of 224.3 million daily active users for the first quarter and overall revenues of $433.6 million, while just falling short of a per-share loss estimate of 7 cents.
The company's net loss during the first quarter was $305.9 million, compared to a loss of $310.4 million for the first quarter of 2019. Average revenue per user came to $2.02, against a year-earlier $1.68.
Shares in Snap rose in after-hours trading by $2.18 or nearly over 17 percent to $14.62.
While Snap posted growth in usage, the company's latest financials were eagerly anticipated by Wall Street as it remains highly exposed to the current advertising downturn and budget cuts by brand marketers.
"Given the uncertainties related to the ongoing COVID-19 pandemic and the rapidly shifting macro conditions, we are not providing our expectations for revenue or adjusted EBITIDA for the second quarter of 2020," the company added in its financial results.
Snapchat CEO Evan Spiegel in his own statement attributed the usage and revenue beat for the first quarter to increased usage of Snap during the coronavirus pandemic.
"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," he said.
