Snap Inc. Reports Increase in Users and Revenue During Q1 2020
More than four billion snaps were sent on average per day.
Snap Inc., the company behind Snapchat, Spectacles and Bitmoji, has reported a strong Q1 2020 growth in revenue and app usage.
As Axios reports, Snap’s stock price grew by 20 percent after it posted its Q1 results. Analysts estimated it would secure $431 million USD in revenue, but exceeded this target with a total of $462 million USD. This was partly achieved thanks to a 20 percent increase in users, up by 39 million from the same time last year to a total of 229 million daily active users.
Because Snap Inc.’s apps are ad-supported, and more people are spending time at home due to the current coronavirus pandemic, the company saw that more than four billion snaps were sent on average each day and that the total time spent watching Discover content increased by 35 percent year-over-year.
The company secured $2.02 USD of revenue on average per user, up by 20 percent year-over-year, too. Despite its impressive Q1 2020 revenue results, Snap Inc. did not reach its estimated earnings, taking an $0.08 USD loss per share compared to the $0.07 USD that was expected.
Snap Inc.’s Q1 2020 results are considerably stronger than its underachieving Q4 2019 results, which saw the company’s stocks drop.
In other news, Kering has announced it saw a 15.4 percent decrease in revenue in Q1 2020.
