After a tumultuous public debut, the state of Snap in 2019 is slowly improving and Wall Street is responding.
The social media messaging company is up nearly 12% after-hours following a beat on Q2 earnings, announcing $388 million in revenue versus the the Zacks consensus estimate of $358.5 million, and a loss of $0.06 EPS versus an expected $0.10 loss. The financials were better than expected, but the real surprise was the healthy user growth.
Snap said they had hit 203 million daily active users (up 8% year-over-year), while that had only been expected to reach 191.7 million. The company announced they had 190 million DAUs last quarter and, despite the year-over-year decrease, the stock had a strong rebound as investors expressed a renewed faith in the company’s ability to bring new users onto the platform.
In guidance for the next quarter, Snap is expecting revenue of $410 million and $435 million.
In its earnings release, the company specifically highlighted how its Android app redesign had driven further engagement on that platform, saying they saw a “10% increase in the retention rate of people who open Snapchat for the first time.” The company says the average time per user per day was 30 minutes.
“The growth in our community, engagement, and revenue is the result of several transitions we completed over the past 18 months,” CEO Evan Spiegel said in a statement. “We look forward to building on our momentum and making significant ongoing progress in each of these areas.”
The company’s share price has nearly tripled since 2019’s start, though it still has a long way before it reaches its all-time high.
We’ll have more details from the call starting at 2pm PT.