(CercleFinance.com) – Snap, the owner of Snapchat messaging, unveiled quarterly results last night that were better than expected thanks to strong growth in its number of users, which allowed it to jump 21% on the stock market.
Accustomed to disappointing publications, the Santa Monica (California) group saw the number of its active users increase by 10% year-on-year to 422 million at the end of the first quarter while analysts expected an average of 420 million.
Turnover, which comes mainly from advertising, therefore increased by 21% to nearly $1.2 billion, thanks in particular to an 85% increase in SME spending.
Other good news, its paid subscription service Snapchat+ – which offers exclusive features – has more than tripled in one year to now have more than nine million members.
Following this publication, Bank of America analysts say they have raised their price target on the stock from 14 to 16 dollars while being cautious about the prospect of future profits.
Snap saw its net loss narrow to 305 million euros in the first quarter, marking a slight improvement compared to the 328 million euros lost a year earlier.
For the second quarter, Snap said it was targeting 431 million active users for revenue between $1,225 million and $1,255 million, representing growth of 15% to 18% year over year.
If analysts emphasize that these forecasts are below the consensus, they also judge that these cautious objectives could be exceeded.
On Wall Street, Snap shares climbed 21% on Friday morning on the New York Stock Exchange, returning to their highest levels since February, but still very far from their peaks recorded in 2021.
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