In its Q1 2019 earnings report today, Snap had lots of good news for investors, from increased users to significant revenue growth.
The camera company has not only halted the quarters-long trend of losing daily active users (DAUs), it’s increased that number 2% since its Q4 2018 report, to 190 million DAUs. That’s still shy of its peak 191 million DAUs from Q1 2018, but it’s positive progress for the company, at least. According to Snap, that number reflects deep saturation of the market, with 90% of all 13-24 year-olds and 75% of all 13-34 year-olds in the U.S. using Snapchat.
But there’s a larger global market to attack, which the company hopes to achieve with its redesigned Android app. The new version started rolling out at the end of Q1. Ostensibly there are feature upgrades, but the main purpose of the redesign is to ensure that the app performs better on lower-power Android devices. “The new app is 25% smaller, opens 20% faster on average, and is modularized for more efficient ongoing innovation,” the company said in a press release, adding that it’s seen a 6% increase in the number of users sending Snaps from lower-end devices already.
This quarter also saw Snap run its first Snap Partner Summit, where the company unveiled Snap Games, a handful of AR features, Snap Kit, and its “Discover” original programming.
The year-over-year revenue trend mirrors what Snap showed at the end of 2018, when it posted 36% growth. This time around, it’s a 39% revenue increase, to $320 million. The company is still operating at a loss, but the numbers are looking better. Its operating loss is up by $76 million, and its net loss improved by $75 million to $310 million, year-over-year.
In the earnings report, Snap CEO Evan Spiegel was optimistic. “This month we announced several new products that we believe will drive further engagement and monetization,” he said. “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.”
Snap’s stock has risen steadily after hitting a low point of $4.82 late in 2018, but today’s close of $11.99 still trails the $15.96 mark it hit this time last year.