Snap released its Q1 financial report last week and the results suggest that the company is recovering after a disappointing 2018.
The platform hit 190 million daily active users, an increase on the 186m Snapchat accrued in Q4 last year, but even that was a slide from the 191 million the platform had at the start of 2018.
Despite this, Snap claims that it is reaching 90 per cent of all 13-24-year-olds in the US, and 75 per cent of all 13-34-year-olds.
“In the first quarter we delivered strong results across our business with growth in daily active users and revenue,” said Snap CEO Evan Spiegel.
“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.”
Snap's Q1 revenue increased by 39 per cent, up to $320 million. Additionally, over year revenue grew to 39 per cent, up from 36 per cent in 2018.
However, its net loss for Q1 was $310 million. That's an improvement of $75 million compared to the $385 million it lost last year, but the company isn't out of the woods just yet.
The company's operating cash flow improved by $166 million to $(66) million compared to last year, and its free cash flow improved by $190 million to $(78) million.
Last month Snap unveiled Snap Games, a new platform focused on real-time multiplayer gaming. It's a strong move into the gaming space and could see Snapchats users bolstered once games begin rolling out onto the main app.
Snap Games has a strong roster of launch partners, including pry Fox (Alphabear Hustle), ZeptoLab (Crash Arena Turbo Stars Drift Race), Game Closure (Snake Squad), Zynga (Tiny Royale), and developers will be able to monetise from the off.
Snap's projections are ambitious but realistic. Q2 revenue is expected to land between $335 million and $360 million according to the report. That's a growth of 28 per cent to 37 per cent compared to revenue in Q2 2018.
Its EBITDA looks to stand between $(150) million and $(125) million, compared to $(169) million in Q2 2018.