Snap Q1 Revenue Rises 12%, DAUs Return to Growth

Snap Reports Strong Q1 Performance

Snap Inc. announced a 12% increase in first-quarter revenue to $1.53 billion, aligning with market expectations. The company also saw a resurgence in its daily active users, which grew to 483 million, adding 9 million from the prior quarter.

A Mixed Regional Picture

The growth in the user base was primarily driven by markets outside of North America and Europe. In its key North American market, Snap experienced a decline in daily active users, and revenue growth slowed to just 2%, highlighting regional performance disparities.

Financial Health and Strategic Shifts

Despite challenges, Snap's adjusted EBITDA reached $233.3 million, surpassing estimates of $205.9 million due to improved operational efficiencies. This follows a recent restructuring involving about 1,000 layoffs. The company also ended its $400 million deal with AI startup Perplexity.

Outlook and Projections

For the second quarter, Snap projects revenue between $1.52 billion and $1.55 billion. The midpoint of this forecast is largely in line with analyst estimates, suggesting a stable outlook for the social media company.

FAQ

Q: What was Snap's Q1 revenue?
A: Snap's first-quarter revenue was $1.53 billion, a 12% year-over-year increase.

Q: How many daily active users does Snapchat have?
A: As of the first quarter, Snapchat reported 483 million daily active users globally.

Source: Investing.com