Snap, parent company of Snapchat, kept adding app users in the first three months of the year — reaching a new milestone in Q1 by surpassing 900 million monthly active users globally. The social media and messaging company also beat Wall Street estimates for Q1. However, Snap did not issue formal Q2 financial guidance citing macroeconomic “uncertainty” and said its ad sales have “experienced headwinds” in the month of April.
For Q1, Snap posted revenue of $1.36 billion, up 14%, and a net loss of $140 million (an improvement over a $305 million net loss a year ago). That translated into a net loss per share of 8 cents.
During the quarter, Snapchat added 7 million daily active users to reach 460 million (up from 453 million at the end of 2024).
“We surpassed an important milestone in Q1, with our community growing to over 900 million monthly active users,” Snap co-founder and CEO Evan Spiegel said in prepared remarks. “Quarterly revenue increased 14% year-over-year, driven by the progress we have made with our direct-response advertising solutions, continued momentum in driving performance for small and medium sized businesses, and the growth of our Snapchat+ subscription business.”
In addition, Snapchat+ subscribers reached nearly 15 million in Q1, an increase of 5 million year-over-year. The growth of the subscription product helped contribute to Snap’s “other revenue” growing 75% year-over-year to reach $152 million in the first quarter, at a just over $600 million annualized run rate.
Snap said it would not share formal financial guidance for Q2, “Given the uncertainty with respect to how macro economic conditions may evolve in the months ahead, and how this may impact advertising demand more broadly.”
The company, in its investor letter, said, “While our topline revenue has continued to grow, we have experienced headwinds to start the current quarter, and we believe it is prudent to continue to balance our level of investment with realized revenue growth.”
More to come.
variety.com
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