Original video content and an updated Android app enabled Snap to add users for the first time in three quarters, as it narrowed its losses.
“In the first quarter we delivered strong results across our business with growth in daily active users and revenue,” said Evan Spiegel, CEO, citing broad availability of a new Android app as a factor.
In an earnings call he added: “While these earlier results are promising, improvements in performance and new user retention will take time to compound and meaningfully impact our top line metrics”.
He also stated Snap Originals have seen “incredible engagement”.
It ended Q1 with 190 million daily active users (DAUs) were 190 million in Q1 2019, an increase from 186 million in Q4 2018 but 1 million shy of Q1 2018.
A net loss of $310 million in Q1 was $75 million lower than in Q1 2018, while revenue grew 39 per cent to $320 million.
The company predicted revenue in the current quarter of between $335 million and $360 million, an increase of between 28 per cent and 37 per cent year-on-year.
Snap’s revamped app faced backlash from users. In an effort to boost its user base, it launched a gaming platform as well as a host of new original shows earlier this month.
Spiegel explained both products generate revenue through six-second non-skippable mobile video advertisements.
Going forward the chief said the company plans to up investments in marketing; content; engineering; and sales “to support its long-term strategic objectives and to build on the momentum we see in our business today”.Subscribe to our daily newsletter Back