Shares of Snap Inc. (SNAP, Financial) jumped 2.5% to $12.29 in after-hours trading on Tuesday after beating consensus estimates on non-GAAP earnings for the first quarter of fiscal 2019 by 2 cents, posting a loss of 10 cents per share or a 44% rise from the prior-year quarter.
The GAAP loss also improved 24% to 23 cents per share.
Revenue grew 38.9% to $320.43 million, beating expectations by $14.15 million.
The Santa Monica, California-based social media company also reported improvements in the adjusted Ebitda loss by $94 million to $123 million, in the operating cash flow by $166 million to -$66 million and in the free cash flow by $190 million to -$78 million.
The progress in the first quarter figures is attributed primarily to the sequential increase in the number of daily active users by 4 million to 190 million=. However, it is still 1 million DAUs lower than a year ago when the company reported 191 million DAUs.
The company said that as of March, Snapchat reached 75% of all 13- to 34-year-old U.S. users and peaked at 90% of all 13- to 24-year-olds.
Snap’s more efficient version of the Android application is now available to everyone, and it is significantly increasing the number of users sending Snaps on lower-performing devices.
Besides the new Android application, in April the company rolled out many products that CEO Evan Spiegel believed “will drive further engagement and monetization."
For the second quarter, the company forecasted revenues of $335 million to $360 million, up 28-37% year over year, versus consensus for $348.04 million, and expects an Ebitda loss of $150 million to $125 million, compared to a year-ago Ebitda loss of $169 million.
Shares of Snap Inc. closed at $11.9 on Tuesday for a market capitalization of $15.84 billion. The stock declined 18% over the 52 weeks through April 23; however, the closing price on Tuesday was above the 200-, 100- and 50-day simple moving average lines. The share price was also 147% above the 52-week low of $4.82 and 31.7% below the 52-week high of $15.67.
The 14-day Relative Strength Indicator of 56.1 suggests the stock is neither overbought nor oversold.
Wall Street issued a hold recommendation rating for shares of Snap Inc. with an average target price of $9.96 per share reflecting a nearly 17% fall from the share price at close on Tuesday.
Disclosure: I have no positions in any securities mentioned.
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