Snap Rises After Sales, User Growth Top Analysts’ Estimates
- Snapchat parent gives revenue forecast that meets projections
- Company says users increased 22% year-over-year to 280 million
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Snap Inc. reported quarterly revenue and daily active users that topped analysts’ estimates, boosted by digital advertising campaigns and consumers turning to the company’s Snapchat app for social connection and entertainment during the pandemic. Shares gained about 5% in extended trading.
Sales jumped 66% to $770 million in the period ended March 31, the Santa Monica, California-based social media company said Thursday in a statement. Analysts, on average, projected $744 million. Snapchat, the mobile app for sending disappearing photos and videos, reported 280 million daily active users in the quarter, a 22% gain from a year earlier, and higher than the 275.4 million average projection of analysts, according to data compiled by Bloomberg.