Snap Inc. is continuing to grow in both users and revenue, according to the company’s newly released financial statements for Q1 2019. Snapchat’s first quarter, which ended on March 31, saw a two per cent increase in daily active users to 190m and a revenue increase of 39 per cent to $320m, while year-over-year revenue growth jumped from 36 per cent to 39 per cent.
The company highlighted that its operating cash flow decreased from $166m last year, improving to $66m in Q1 2019. Free Cash Flow also lowered from last year, improving from $190m to $78m. Additionally, both Snap's operating loss and net loss improved by around $75m compared to last year. Since March, Snapchat now reaches 90 per cent of all 13-24-year-olds, and 75 per cent of all 13-34-year-olds in the US.
“In the first quarter we delivered strong results across our business with growth in daily active users and revenue,” said Evan Spiegel, Snap CEO. “Our new Android application is available to everyone, with promising early results. This month we announced several new products that we believe will drive further engagement and monetization. As we look towards the future, we see many opportunities to increase our investments, and will continue to manage our business for long-term growth.”
The company also highlighted the complete redesign of its Android app - which was made available to all Android users by the end of March - stating the new app is 25 per cent smaller and opens 20 per cent faster. Snap’s report underlined all announcements made during its first Snap Partner Summit in April, including Snap Games, more augmented reality, Snap Kit for partners, and Discover, which includes original content.
In Q1, Snap also took to making its platform more advertising-friendly, implementing new features that helped ad partners control their content, such as Ads Manager and the Reach & Frequency product.
As for the company’s financial outlook for 2019, investors were told revenue is expected to be between $335m and $360m , or grow between 28 per cent and 37 per cent compared to Q2 2018, while adjusted EBITDA is expected to be between $150m and $125m, compared to $169m in Q2 2018.