Business

Snapchat revenue rises, beating expectations amid the pandemic

With more people staying home, Snapchat's daily active users increase by 20%

Snapchat Q1 results beat market expectations amid the pandemic
Social distancing has pushed Snapchat's results forward in the first quarter. Photo: Shutterstock
  • Snap Inc. released its Q1 financial results this Tuesday topping market forecasts that were concerned with the pandemic’s effects on the company’s performance;
  • The company recorded a 44% YoY growth in revenues and 20% in daily active users;
  • A rising trend in social media, over 75% of Snapchat’s daily active users engage with augmented reality every day on average, says the report.

In spite of market expectations, that were forecasting sharp drops for ad-reliant social media firms due to the coronavirus outbreak, Snapchat‘s parent company Snap Inc. announced a handful of good news this Tuesday, 21st, in its Q1 financial results report.

Revenues reached as much as $462 million, topping Wall Street’s expectations of $430 million for the first quarter and bringing 44% more revenues compared to the same period of 2019. The number of daily active users, an important metric among digital apps, has also surprised analysts hitting 229 million, a 20% YoY gain, and placing above the 224.5 million users expected in Q1.

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

CEO Evan Spiegel STATED IN the FINANCIAL release

Among other highlights, Snap registered a 35% year-over-year increase in daily time spent by users watching content from the Discover platform inside the app.

Snap’s shares have plunged more than 30% since its previous earnings release, in a similar movement detected by other social media players amid a broader market fall. As the company is the first of the segment to report earnings for the quarter, its performance could shed a light on what might be the results for other players.