Snap, the messaging pioneer, reported higher-than-expected first-quarter revenue and earnings yesterday afternoon, with a higher outlook for the current quarter. The company adds that it posted its first quarterly profit. cash.
Snap adds that the number of daily active users has risen to 280 million, beyond the 274.6 million expected by Wall Street. Snap’s cash flow, after accounting for fixed investments, is now $ 131 million. This is the first time the company has posted positive free cash flow.
Initially, the report indicated a drop in Snap’s stock of around 3%, and the stock took 5%.
A historic quarter
Snap “began the year 2021 achieving in the quarter both its highest year-over-year revenue increase and its highest growth in daily active users for more than three years, but also launching positive free cash flow times in its history for the first time. ”Said Evan Spiegel, CEO and founder of Snap.“ The strength of our activity underscores our tireless focus on product innovation and testifies to the ability of our long-term teamwork. “
Sales for the quarter ending in March grew 66% compared to last year, reaching $ 770 million, reaching balance in terms of net profit. Analysts were expecting $ 744 million in revenue and a net loss of 5 cents per share.
Snap’s operating loss, expressed in adjusted EBITDA – that is, earnings before interest, taxes, depreciation and amortization – is $ 2 million, according to the company.
22% more daily active users
For the current quarter, the company expects revenues of between $ 820 million and $ 840 million, and EBITDA of between – $ 20 million and breakeven. By comparison, the consensus is $ 826 million and an EBITDA loss of $ 2 million.
In a conference call with analysts following the release of this report, Snap announced that it was forecasting the same growth rate of 22% for its daily users this quarter.
“Looking at the second quarter, we estimate that the number of daily active users will increase at the same rate as during the last quarter, or about 22% year-on-year, to $ 290 million in the second quarter,” the company said. This figure is higher than the 282 million predicted by Wall Street.
Fountain: HFrance.com
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