Snap Inc. (SNAP) shares skyrocketed nearly 30 percent in the early trading session Wednesday after the company posted narrower than expected loss for the first quarter.
The Santa Monica, California-based company posted a net loss of $305.9 million, or 21 cents per share for the quarter, as compared to a loss of 23 cents per share in the same period last year. On an adjusted basis, SNAP reported a loss of 8 cents per share, as compared to net loss of 20 cents per share forecasted by analysts.
Revenue for the quarter came in at $462.5 million, well above $320.4 million in the comparable period last year. Revenue easily surpassed consensus forecast of $423.7 million.
SNAP said that its daily active users jumped 20 percent to 229 million in the quarter, as compared to 190 million in the same period last year, while analysts surveyed by Wall Street estimated 225 million daily active users. Looking forward, the company expects daily active users to surge nearly 18 percent to 239 million in the second quarter.
Communications with friends climbed 30 percent in March’s last week, versus the comparable week in February, while in some places around the globe, SNAP enjoyed a surge of more than 50 percent.
Snap reported that time people spend playing games in its app increased more than two folds in March. Moreover, the daily downloads of its Snap Camera app increased by 30-folds. The aforesaid app enables users to go live and make video conference calls.
Social media and communication companies are benefiting from the coronavirus pandemic as users have started spending more time on the social networks to stay connected with their family and friends.
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