SNAP Stock: 7 Reasons Why Snap Is On the Move Today

Shares of Snap (NYSE:SNAP) stock are higher on Friday after the company reported strong first-quarter earnings for fiscal year 2021.

An apple iPhone showing the snapchat application alongside other snapchat logos

Source: Ink Drop /

This included revenue of $769.58 million for the period, which beat analyst estimates of $743.8 million. Additionally, Snap said its non-GAAP earnings per share (EPS) was a flat zero, while Wall Street was expecting losses per share of 6 cents.

Additionally, here’s a more thorough look at the most recent Snap earnings report:

  • Adjusted per-share earnings were up 102% from an 8-cent loss during the same time last year.
  • Revenue for the quarter comes in 66% above the $462.48 million from Q1 of 2020.
  • Operating income of $136.89 million is a massive increase year-over-year from $6.28 million.
  • The Snap earnings report also has it bringing in a net loss of $286.88 million.
  • That’s a 6% drop compared to a loss of $305.94 million from the same period of the year prior.
  • Moreover, Snap said its global daily active users reached 280 million for the quarter — better than what was expected.
  • Also, its average revenue per user was above estimates at $2.74.

Evan Spiegel, CEO of Snap, had this to say regarding the SNAP stock earnings report.

“We began 2021 by achieving our highest year-over-year revenue and daily active user growth rates in over three years during the quarter, and delivering positive Free Cash Flow for the first time in Snap’s history as a public company. The strength of our business underscores our relentless focus on product innovation and is a testament to our team’s ability to execute well together over the long term.”

SNAP stock was up 2.5% as of Friday morning.

On the date of publication, Nick Clarkson did not have (either directly or indirectly) any positions in the securities mentioned in this article. 

Nick Clarkson is a web editor at InvestorPlace.

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