Snap beats user growth estimates with revamped Android app

Sheila Dang
·1 min read

By Sheila Dang

April 22 (Reuters) - Snap Inc on Thursday beat Wall Street estimates for user growth and revenue as the improved Android version of its popular messaging app Snapchat attracted more users outside of the United States.

Daily active users (DAUs), a metric closely watched by investors and advertisers, rose 22% year-over-year to 280 million in the first quarter. Analysts had expected 275.3 million, according to IBES data from Refinitiv.

Snap embarked on rebuilding its Android app, which struggled with technical bugs, back in 2018. Snapchat's Android user base now exceeds those on Apple iOS for the first time, the company said.

Revenue, which Snap generates mainly from advertising, grew 66% to $770 million in the quarter ended March 31, beating Wall Street's consensus estimate of $743 million.

Snap has increasingly invested in augmented reality technology, betting that it can help brands market products like clothes and makeup to tech-savvy young users.

In March, Snap acquired Fit Analytics, a tech company that helps customers virtually determine if clothing will fit.

"Augmented reality remains one of our biggest opportunities as we look to the future," said Snap Chief Executive Evan Spiegel, in prepared remarks released before an earnings call with analysts.

Snap's net loss narrowed to $286.9 million, or 19 cents per share, from $305.9 million, or 21 cents per share, a year earlier.

(Reporting by Sheila Dang; Editing by Lisa Shumaker)