Snap Hits 900 Million Users, Beats Q1 Estimates, But Stock Slides On 'Uncertainty'

Tech company and Snapchat parent Snap Inc SNAP reported first-quarter financial results after market close Tuesday.

Here are the key highlights.

What Happened: Snap reported first-quarter revenue of $1.36 billion, up 14% year-over-year. The revenue total beat a Street consensus estimate of $1.35 billion according to data from Benzinga Pro.

The company reported an adjusted loss of 8 cents per share, beating a Street consensus estimate of a loss of 13 cents per share.

Snap had 460 million daily active users at the end of the first quarter, up 9% year-over-year. The company also passed the milestone figure of 900 million monthly active users, on its way to a goal of one billion MAU.  

The company's adjusted EBITDA was $108 million in the quarter, an improvement of 137% year-over-year.

"We surpassed an important milestone in Q1, with our community growing to over 900 million monthly active users," Snap CEO Evan Spiegel said.

Spiegel said progress was made in advertising solutions and Snapchat+ subscriptions in the quarter.

Active advertisers in the quarter were up 60% year-over-year.

Read Also: Mark Zuckerberg Defends Meta In FTC Trial Over $6 Billion Offer To Acquire Snapchat: ‘We Would Have Accelerated Their Growth’

What's Next: Snap is not providing formal guidance for the second quarter.

"Given the uncertainty with respect to how macro economic conditions may evolve in the months ahead, and how this may impact advertising demand more broadly, we do not intend to share formal financial guidance for Q2," the company said.

Snap said its revenue has continued to grow, but there are headwinds at the start of the second quarter.

The company is guiding for daily active users to be 468 million in the second quarter.

"While there is uncertainty regarding the macro operating environment, we remain optimistic about the long term prospects for our business."

The company said it is optimistic about the progress it made with its ad platform, the growth of Snapchat+, and because of its strong balance sheet.

"We will remain focused on executing against our strategic priorities of growing our community and improving depth of engagement, driving top line revenue growth and diversifying our revenue sources, and building toward our long term vision for augmented reality (AR)."

SNAP Price Action: Snap stock is down 12% to $8.00 in after-hours trading versus a 52-week trading range of $7.08 to $17.33. Snap shares were up 2.9% to $9.09 in the intraday trading session.

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