Snap’s stock price surged 20% in early after-hours trading on Tuesday, after the Snapchat parent company reported strong revenue and user growth during Q1.
Snapchat added 11 million new users during the first quarter — making it the company’s second best quarter ever in terms of total subscribers added. (The company’s record for most subscribers added in a single quarter is 13 million, which it hit during the second quarter of 2019.) Overall, the company now has 229 million daily users.
The Los Angeles-based company also reported sales increased 44% year-over-year to $462 million, which easily surpassed the $431.4 million in revenue analysts had projected. Snap lost 8 cents per share, which was in-line with analyst estimates.
Snap has had a rough 2020 to this point, with its share price down about 20% on the year heading into Tuesday afternoon. But after its Q1 report came out, the company’s share price spiked 20% to $14.90 per share.
“We are grateful for the opportunity to serve our community and partners during this difficult time,” Snap CEO Evan Spiegel said in a statement. “Snapchat is helping people stay close to their friends and family while they are separated physically, and I am proud of our team for overcoming the many challenges of working from home during this time while we continue to grow our business and support those who are impacted by COVID-19.”
Users are gravitating more towards Snap’s content, according to its Q1 letter to shareholders, which said its Discover shows have seen a 35% increase in viewership in the last year.
Snap will hold a conference call at 2:00 p.m. PT to discuss its Q1 report.