Snap, the parent company of photo-sharing app Snapchat, defied analysts expectations in the first quarter of 2019 – and its better-than-expected revenues and earnings per share have sent its stock jumping more than 10%.
The company saw revenues of $320 million in the quarter, besting consensus estimates of $307.4 million and growing 39% year-on-year. And it enjoyed 190 million daily active users, versus an 186.8 million prediction.
The results are welcome news for the company, which has struggled as it faces sustained pressure from Facebook-owned Instagram, and suffered in the wake of a widely criticised redesign in 2018. But even prior to Tuesday’s results, Snap’s stock has been making a comeback: Prior to market close, it was hovering at around $12 a share – up more than 100% from lows of less than $5 in December 2018.
In a statement, CEO Evan Spiegel hailed the company’s growth in daily users and revenues, and said the company’s new Android app – long promised as a key to unlocking future growth – was yielding “promising early results.”
Here are the key numbers, as well as what Wall Street was expecting (estimates via Bloomberg):
- Earnings per share (adjusted): $-0.10 ($-0.12 predicted, up 28.3% year-on-year)
- Revenue: $320 million ($307.4 million predicted, up 33.3% year-on-year)
- Daily Active Users: 190 million (186.8 million expected)
Earlier in April, research firm Emarketer predicted that Snapchat’s US userbase could shrink for the first time this year.
Business Insider is covering Snap’s earnings live. Refresh this page for updates.
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