Snap Q1 daily active users jumped by 22% to 280 million, topping estimates 

Snap (SNAP) reported fiscal first-quarter results that exceeded expectations, reflecting still-strong revenue and user growth amid ad product improvements and heightened engagement during the pandemic. However, the company's adjusted EBITDA loss forecast for the current quarter came in weaker than expected. Shares fell 3.5% in late trading following the report. 

Here were the main metrics from Snap's report Thursday evening, compared to consensus estimates as compiled by Bloomberg:

Q1 Revenue: $769.6 million vs. $743.97 million expected and $462.48 million Y/Y 

Q1 Adjusted earnings per share: breakeven, vs. loss of 6 cents expected and loss of 8 cents Y/Y 

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Daily active users: 280 million vs. 275.4 million expected and 229 million Y/Y 

Snap posted a top-line increase of 66% during the first quarter, accelerating from the prior quarter's 61% revenue growth rate. The company also eked out an unexpected breakeven result in adjusted earnings per share, whereas a loss was expected. 

"We began 2021 by achieving our highest year-over-year revenue and daily active user growth rates in over three years during the quarter, and delivering positive free cash flow for the first time in Snap’s history as a public company,” Snap CEO Evan Spiegel said in a press statement. “The strength of our business underscores our relentless focus on product innovation and is a testament to our team’s ability to execute well together over the long term.”

However, for the current quarter, Snap forecasted an adjusted EBITDA loss of between $20 million and breakeven, sharply missing the consensus estimate for a loss of $1.28 million, based on the midpoint estimate. 

Like many other social media platforms, Snap, the parent company of the disappearing image-sharing app Snapchat, benefited from a rise in adoption and engagement during the pandemic as users stuck at home sought out entertainment online. Daily active users increased between 17% and 22% year-over-year in every quarter in 2020, for growth rates well above those from 2019. Snap grew its user base by another 22% in the first three months of 2021, extending its recent run of strength into the first three months of the year.