Snapchat shares jump by 20% after surge in revenue and usersPublished by Terence Mahier | Source
Snap announced yesterday its earnings results for Q1, sending its share price up as much as 20% in after-hours trading 🔥
Snap’s user base grew to 229M daily active users, up 20% from last year.
CEO Evan Spiegel explained that the current lockdowns might have helped: “Snapchat has always been focused on helping people build and maintain their friendships, which is especially critical as people practice physical distancing and shelter in their homes” 📱
Despite declining advertisement spendings, Snapchat managed to maintain a high level of monetization with a revenue of $462M, up more than 44% from Q1 2019.
Can it keep rising? 🤔
While Snapchat did not give direct guidelines for the rest of the year, strong optimism could be felt: "While it is difficult to predict the near-term impact of this unprecedented, complex, and global pandemic on our business, we believe that all of the long-term indicators we see in terms of our audience, their engagement, our momentum on product innovation, our auction dynamics, and advertiser ROI position us very well for success" 💪
Snap is still down 20% since the beginning of the year amid concerns that advertisement revenue might drop during the pandemic 🤧
The numbers speak for themselves. Snapchat climbed by more than 30% yesterday after better-than-expected results and a positive outlook. There might be still upside room as Snapchat is still down 15% since the beginning of the year, but such a return in a day is quite rare and might turn back momentarily...
- Newspill Team 💊
23-Apr 08:44 (Eastern Time)
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