$Snap Inc(SNAP)$ announced its Q1 financial performance, soaring 24% after hours.
The Q1 financial performance
Revenue saw a 21% year-on-year increase in first-quarter revenue to $1.195 billion, exceeding the expected $1.12 billion, mainly due to improvements in the advertising platform and increased demand for direct response advertising solutions
Adjusted EBITDA is $46 million, expected to be -$67.6 million. DAU is 422 million, market expectations were at 420 million.
Free cash flow is $38 million.
Content platform
Daily Active Users (DAU) reached 422 million, a 10% year-on-year increase in global content viewing time and audience numbers increased year-on-year,
Spotlight and creator stories contributing the most Focus is on deepening content engagement in three areas: personalized content ranking, support for creators, and improving social experiences
Using generative AI to bring new features and experiences to the community, such as enhancing photos with AI, generating AI subtitles and images, etc.
Ad AI platform
Continuously improving machine learning models, optimizing advertiser
Return on Ad Spend (ROAS), 7-0 pixel purchase optimization model conversion volume increased by over 75%
Introducing a brand new privacy-first first-party signal solution CAPI, with 300% year-on-year growth in integrations
Collaborating with advertisers to launch innovative ad products, such as IAS's brand safety third-party measurement products
Small business advertisers increased by 85% Launching new tools to make it easier for advertisers to create AR assets and launch AR activities
Q2 Financial Outlook
Estimated second-quarter DAU to be approximately 431 million, an increase of 15%-18% year-on-year Estimated second-quarter adjusted EBITDA is $15-45 million
Estimated full-year 2024 adjusted operating expenses of approximately $2.425-2.525 billion, share-based payment costs of approximately $1.13-1.2 billion
Overall, Snap made good performance progress in the first quarter, advancing in community growth, content engagement, and advertising platform improvements.
The company maintains a strategy of innovation and cautious investment, aiming for sustained profitability and positive cash flow.
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