SNAP - Snap Finally Advances On The Ad Front | Benzinga
Last Thursday, Snap Inc (NYSE: SNAP) reported its first quarter financials, showing that the improvements it made to its advertising system showed results faster than anticipated. Upon the earnings beat, strong revenue growth as well as the rise of daily active users to 422 million, shares surged 21% during after-hours trading.
First quarter results show Snap’s efforts to rebuild its ad business are working.
For the first three months of the year, Snapchat-parent reported revenue rose 21% to $1.19 billion, surpassing LSEG’s estimate of $1.12 billion. More importantly, Snap finally reported double digit sales growth, after six consecutive quarters of single-digit growth and declines. Advertising brought in $1.11 billion to the revenue table, while Other Revenue grew 194% YoY to $87 million, fueled by more than 9 million Snapchat+ subscribers. As a result, adjusted EBITDA of $46 million surpassed expectations as StreetAccount expected a loss of $68 million. Adjusted EPS amounted to 3 cents, also greatly surpassing LSEG’s estimate ...