Snapchat appears to have turned the corner after a year of flat or negative user growth thanks to a strong Q1 2019 earnings report. It reached 190 million daily active users, up from 186 million in Q4 2018 but still down from 191 million a year ago, in part thanks to its newly reengineered Android app. Snap saw $320 million in revenue and -$0.10 non-GAAP EPS, beating estimates of of $306 million and -$0.12 EPS.
One concern is Snapchat provided guidance of greater losses next quarter, ranging from $125 million to $150 million compared to this quarter’s $123 million. Snap CEO Evan Spiegel tells me that’s because increased usage triggers higher Amazon AWS and Google Cloud bills for the company. That could delay Snapchat hitting profitibility, which Spiegel had set of goal of reaching by the end of 2019.
The strong beat on earnings led Snap’s share to climb about 10 percent in after hours trading to around $13.21 in after hours trading, after closing at $11.99 earlier today. That’s up from a low of $5.07 in December.