Snap had a rousing morning today as its stock price jumped as much as 11 percent in afterhours trading on Tuesday. Better known for its wildly popular mobile sharing platform, Snapchat, the tech startup beat analyst expectations early but gave up much of its gains during the earnings call. Essentially, as investors started to come to terms with the numbers, the stock finally settled at only 1 percent on the day by the next morning.
The actual numbers reflect that losses did not hit as hard in the first quarter as they had originally thought. This was mostly due to consistent user growth, which improved advertising revenue. The company now boasts 190 million daily active users, which is notably higher than its 186 million reported last quarter. But even with this bump, the update is still a million shy of Snapchat’s peak user base total since going public in 2017.
Indeed, Snap CEO Evan Spiegel confirms, “In the first quarter we delivered strong results across our business with growth in daily active users and revenue.”
And with that, it looks like Snap’s share price is up more than 100 percent since the same time last year, thanks to a particularly strong start. But in addition to revitalized user growth, Snap also announced a new gaming platform as well as a catalog of new original shows, and an entire ad network with more augmented reality features. Finally, the tech company also reported the roll-out of its newly reformulated Android app.
During a recent earnings call, Spiegel commented that Snapchat’s Android app has finally become available on all Android devices, creating a new opportunity to boost user base. “There are billions of Android devices in the world that now have access to an improved Snapchat experience,” he said. “We look forward to being able to grow our Snapchat community in new markets.”
Spiegel also notes, in prepared remarks, that the mobile messaging platform is more popular among 13- to 34-year-olds than Instagram, in the United States. However, the statement does not elaborate on the reason for this sudden bump in user base. More specifically, he breaks down that Snapchat reaches approximately 75 percent of mobile users between 13 and 34 and 90 percent of uses between 13 and 24.