Proactive Investors - Snap Inc (NYSE:SNAP), the company which owns Snapchat, surged close to 25% in pre-market trading after the group saw both its revenues and profits beat guidance in the first quarter.
Revenues at the social media company lifted by 21% to US$1.19 billion during the three months, improving on Wall Street guidance of US$1.12 billion.
Adjusted losses per share also topped analysts’s forecasts of US$0.05 after they came in at US$0.03.
Some 422 million global daily active users and an average revenue per user of US$2.83 also beat Wall Street predictions.
Analysts had guided 420 million users and an average revenue of US$2.67 per person.
Snap’s return to double-digit sales growth comes after six straight quarters of single-digit growth or revenue declines.
It comes as the group begins to experience benefits from its rebounding advertising business, with management attributing the revenue growth to improvements in the division and higher demand for direct response ads.
“I think more broadly, we saw a much more robust brand environment, which played out in all of our regions in Q1,” finance chief Derek Andersen said in the group’s earnings call.