Snap reported better-than-expected results for the first quarter and its first quarter of positive free cash flow as a public company. CEO Evan Spiegel said the year-on-year revenue and daily active user growth rates were the highest in over three years.
Revenues for the quarter jumped 66 percent from the year before to USD 770 million. The net loss narrowed to USD 287 million from a loss of 306 million the year before, while the adjusted EBITDA loss also came in better than forecast, at USD 2 million against a loss of 81 million. The operating cash flow reached USD 137 million, an improvement of USD 131 million from the year before, while the free cash flow went to USD 126 million from a negative 4.6 million the year before.
Snapchat had 280 million daily users in the quarter, against 265 million in the fourth quarter and up by 51 million or 22 percent year-on-year. The sequential improvement was seen in North America, Europe and Rest of World. The company noted that the majority of its daily users were for the first time on the Android version of its application.
Looking towards the second quarter, Snap is guiding for revenues of USD 820-840 million, from 454 million the year earlier. The adjusted EBITDA is seen ranging from a loss of USD 20 million to breakeven, from a loss of 96 million in 2020.
