Snap's Stock Goes Up 6% In Q1

Snap's stock recorded a 6 percent rise on Thursday after the social media company released its financial results for the Q1, in which it exceeded Wall Street's expectations on earnings, revenue and user growth.

The company provided an adjusted EBITDA forecast that it will lose as much as $20 million or break even in the second quarter.

Snap's net loss went down 6 percent from the $306 million of last year to only about $287 million. The company also expects a year-on-year growth on revenue of about 80 - 85 percent for Q2, which is much higher than the 66 percent it recorded in Q1, according to Derek Anderson, the CFO. The number of daily active users are also expected to reach 290 million in Q2. Currently the company reports 280 million active users, which is a 6 percent increase from the 265 million it recorded two months ago in February. Last year, the company reports 229 million daily users.

The CFO, Anderson, disclosed that the first quarter of 2021 marks the company's first quarter of positive free cash flow since going public, a figure of $126 million.

Snap Inc SNAP. is an American camera and social media company, founded on September 16, 2011, by Evan Spiegel, Bobby Murphy, and Reggie Brown. Its shares currently trade for about $60.60 on the New York Stock Exchange.