Revenue Growth: Q1 revenue grew 21% year-over-year to $1.195 billion, driven by a 14 percentage point acceleration in advertising revenue, which grew 16% year-over-year.
Adjusted EBITDA: EBITDA increased to $46 million in Q1, up from $1 million in the same quarter of the previous year.
Daily Active Users (DAUs): Reached 422 million, an increase of 39 million or 10% year-over-year.
Other Revenue: Saw a 194% year-over-year increase, reaching $87 million, primarily from Snapchat subscription revenue, with subscribers topping 9 million in Q1.
Adjusted Gross Margin: Reported at 52% in Q1, down from 55% in the previous quarter and 56% in the previous year.
Net Loss: Reduced to $305 million in Q1, compared to $329 million in the same quarter of the previous year.
Free Cash Flow: Positive at $38 million in Q1.
Future Guidance
Q2 Revenue Expectations: Anticipates revenue between $1.225 billion to $1.255 billion, indicating year-over-year growth of 15% to 18%.
Q2 DAU Expectation: Projected to approximate 431 million.
Adjusted EBITDA for Q2: Projected to be between $15 million and $45 million.
Infrastructure Cost per DAU for 2024: Estimated to be in the $0.83 to $0.85 range.
Operating Expenses for 2024: Anticipated to be between $2.425 billion to $2.55 billion.
Stock-Based Compensation (SBC) for 2024: Estimated to range from $1.13 billion to $1.2 billion.
Trends, Market Conditions, Sentiment
Strategic Priorities: Focus on accelerating and diversifying revenue growth, growing and engaging the community, and leading in augmented reality.
Advertising Platform Improvements: Substantial progress in advertising platform efficiency, particularly in direct response (DR) advertising, showing a notable increase in purchase-related conversions.
SMB Growth: A significant 85% year-over-year increase in active small- and medium-sized advertisers on the platform.
Content Engagement: Highlighting efforts on innovating with visual communication and AR to deepen user engagement.
Infrastructure Investments: Continued investments in cloud infrastructure to support advertising product performance and engagement, with improvements in infrastructure cost efficiencies noted.
Cost Structure Optimization: Efforts to improve operating leverage by addressing cost structure and investment priorities, aiming for sustained profitability and positive free cash flow.
Notable Quotes
Evan Spiegel on Strategic Direction: “I’m excited to share the progress we are making on our strategic priorities and the momentum we are building.”
On Serving Community and Partners: “We remain focused on serving our community with innovative and responsible products, investing in our direct response business to deliver measurable ROAS for our advertising partners…”
On AR Innovations: “We have never worked on anything as profound and meaningful as augmented reality…transforming the way we use computing in our daily lives.”
Derek Andersen on Financials: “For the first quarter, revenue and adjusted EBITDA exceeded our expectations as a result of increased demand for our advertising solutions and an improved cost structure.”
