Social media company Snap posted a double-digit jump in revenue during Q1, as millions of new users flocked to its app during the Covid-19 (coronavirus) pandemic, but still failed to turn a profit.
In its financial report, the company said Snapchat’s daily active users grew 20 per cent year-on-year to 229 million, with gains across each of its North America, Europe and Rest of World regions.
On an earnings call, CEO Evan Spiegel (pictured) said users were “incredibly engaged” during the quarter, creating an average of 4 billion Snaps per day.
He also highlighted a “sharp increase in group-related activities across chat, calling and games,” noting average daily time spent in games on the app more than doubled during March.
Revenue in Q1 increased 44 per cent to $462 million, but the company remained at a net loss of $306 million, although this was less than its $310 million loss in the opening quarter of 2019.
The company said it continued innovating in the recent period, citing its App Stories launch [1] allowing sharing of Stories to third-party apps, unveiled at the end of March, as an example.
Snap abstained from disclosing expectations for revenue and earnings in the current quarter, given “the uncertainties related to the ongoing Covid-19 pandemic and the rapidly shifting macro conditions”.
[1] https://www.mobileworldlive.com/apps/news-apps/snap-boosts-stories-reach-with-third-party-deals/
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