The stock market might be in a bit of turmoil at this point in time, but that did not deter the Snap Inc’s (NYSE:SNAP) stock from surging in today’s trading session. The company revealed its financial results for the fiscal first quarter yesterday. Snap beat analysts’ estimates for advertising revenue, and that resulted in a 20% jump in the stock price in extended trading.
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Analysts had reduced their outlook with regard to the company’s advertising revenues in light of the coronavirus pandemic. Despite the optimism regarding the advertising revenues, Snap did announce that it has experienced slower growth in ad revenues in March and April so far.
In the first quarter, the company suffered a net loss of $305.9 million, which works out to a loss of 21 cents a share. In the same quarter last year, Snap suffered losses of $310.4 million, and the per-share loss stood at 23 cents. The revenues for the quarter shot up to $462.5 million from $320.4 million in the first quarter of 2019.
Analysts had expected the company to generate $423.7 million and losses of 20 cents a share. The company revealed that in the second quarter, it estimates year on year growth of 15% up until April 19.
Snap went on to add that the estimated rate of growth for the most recent week stands at 11%. The remarks were made by the Chief Financial Officer of the company Derek Andersen. Analysts have projected that the company is going to generate revenues of $411 million for the second quarter, and the losses have been pegged at 20 cents a share.
During the first quarter, the daily active users on the platform rose by as much as 20% to hit 229 million. Analysts had estimated the same figure to be around 225 million. The company expects the daily active users figure to rise to 239 million in the next quarter.
SNAP stock is up by 20.42% to $14.98.
