Snap (NASDAQ:SNAP) shares soared Friday, a day after the company reported first-quarter results that beat analysts’ estimates and showed a return to double-digit revenue growth.
Snap’s earnings per share proved three cents adjusted vs. a loss of five cents expected by LSEG. Revenue came in at $1.19 billion vs. the expected $1.12 billion. The company reported global daily active users at 422 million vs. 420 million expected, with average revenue per user: $2.83 vs. $2.67 expected.
Revenue for Snap’s first quarter increased 21% from $989 million in the same period last year. The company is growing at an accelerated clip, after it had previously reported six straight quarters of single-digit growth or sales declines.
Snap has been working to rebuild its advertising business after the digital ad market stumbled in 2022, and it’s starting to pay off. In its investor letter, Snap said revenue growth was primarily driven by improvements in the company’s advertising platform, as well as demand for its direct-response advertising solutions.
Snap’s net loss for the quarter narrowed to $305.1 million, or a 19-cent loss per share, from $328.7 million, or a 21 cent loss per share, the year prior.
SNAP shares hiked $2.82, or 24.7%, to $14.22.
