Snap registers strong revenue, user growth amid Covid-19 pandemic

The company also said that it won’t be providing any guidance for next quarter owing to the uncertainty in the market in light of the Covid 19 outbreak.

The company also announced its net loss also improved marginally. (Reuters)

Snap Inc has announced its quarterly revenue for the first quarter of 2020. After the announcement, the share price of the company increased by 20% to $14.93.

The company beat the Wall Street estimates and registered strong growth both in terms of the revenue and in terms of the user base. Snap Inc, in a letter to the investors, said that while its Daily Active Users or DAUs had increased by 20% year-over-year to 229 million, its first quarter revenue had increased 44% year-over-year to $462 million.

Snap also announced its net loss also improved marginally. While the company recorded a net loss of $310,407 in the first quarter of 2019, it reduced by 1% to $305,936 during the first quarter of 2020. Snap said it witnessed a marginal change in its net loss despite a strong revenue due to the company's continued investment in various technologies which includes its camera and augmented reality based features.

"We are grateful for the opportunity to serve our community and partners during this difficult time. 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," Snap CEO Evan Spiegel said in a statement.

The company also said that it won't be providing any guidance for next quarter owing to the uncertainty in the market in light of the Covid 19 outbreak. "Given the uncertainties related to the ongoing COVID-19 pandemic and the rapidly shifting macro conditions, we are not providing our expectations for revenue or Adjusted EBITDA for the second quarter of 2020," the company added.