Snap Q1 Earnings: Revenue Up 14%, Hits 900M Monthly Users
Rhea-AI Summary
Snap reported strong Q1 2025 financial results with revenue increasing 14% year-over-year to $1.36 billion. The company achieved a significant milestone by reaching over 900 million monthly active users, while daily active users grew 9% to 460 million.
Key financial highlights include:
- Net loss improved 54% to $140 million
- Adjusted EBITDA up 137% to $108 million
- Free Cash Flow grew 202% to $114 million
- Total active advertisers increased 60%
The company's Snapchat+ subscription business showed strong growth, with Other Revenue up 75%. AR innovations included new AI video Lenses and Easy Lens creation tools, generating over 2 billion impressions. The platform's engagement metrics improved significantly, with Snap Star Spotlight posts growing 125% and My AI daily active users increasing 55% in the US.
Positive
- Revenue grew 14% YoY to $1.36B in Q1 2025
- Daily Active Users increased 9% YoY to 460M
- Monthly Active Users reached 900M milestone
- Net loss improved 54% YoY to $140M
- Adjusted EBITDA up 137% YoY to $108M
- Free Cash Flow grew 202% YoY to $114M
- Total active advertisers grew 60% YoY
- Snapchat+ subscription revenue up 75% YoY
- Operating loss improved 42% YoY
Negative
- Still operating at a net loss of $140M
- Operating loss of $193.8M despite improvement
- DAU growth rate of 9% shows deceleration compared to MAU growth
- Diluted loss per share of $0.08
News Market Reaction
On the day this news was published, SNAP declined 12.43%, reflecting a significant negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Snap Inc. Reports 14% Revenue Growth and Narrows Losses in Q1 2025
Snap Inc. (NYSE: SNAP) reported financial results for the first quarter ended March 31, 2025, posting a
The company reduced its net loss by
User Growth and Engagement Metrics
Daily active users (DAUs) grew to 460 million in the first quarter, representing a
"We surpassed an important milestone in Q1, with our community growing to over 900 million monthly active users," said Evan Spiegel, CEO of Snap, in the release. "Quarterly revenue increased
The company reported several engagement improvements, including:
- Snap Star Spotlight posts grew by over
125% - Views on Spotlight posts less than 24 hours old doubled year-over-year
- My AI daily active users increased more than
55%
Financial Performance
Snap's financial metrics showed broad improvement across multiple categories:
| Metric | Q1 2025 | Q1 2024 | Year-over-Year Change |
|---|---|---|---|
| Revenue | |||
| Net Loss | |||
| Adjusted EBITDA | |||
| Operating Cash Flow | |||
| Free Cash Flow | |||
| Diluted Net Loss Per Share |
The company noted that operating loss improved
Advertising and Revenue Diversification
Snap reported strong growth in its advertising business, with total active advertisers increasing by
According to the release, Snap made several improvements to its advertising platform, including enhancements to its automated Target Cost bidding strategy, expansion of the Agency Partner Program to agencies of all sizes, and early testing of Sponsored Snaps in its auction system. The company also launched new brand suitability solutions to give advertisers more control over content adjacency.
"Other Revenue," which Snap said is primarily composed of Snapchat+ subscription revenue, increased
Augmented Reality and Platform Development
The company highlighted several advancements in its augmented reality (AR) platform during the quarter:
- Introduction of new advanced AI video Lenses powered by Snap's in-house generative video model
- Early testing of Easy Lens, an AI-powered tool that simplifies Lens creation, which has already been used to create over 10,000 Lenses generating over 2 billion impressions
- Launch of Music Lyrics feature combining community-created Lenses with music library
- Lens Studio downloads more than doubled year-over-year, with monthly active users reaching an all-time high
Snap also reported progress on its next-generation AR operating system for Spectacles, introducing platform capabilities that integrate global positioning system, compass heading, and custom locations to improve location-based experiences. The company added several new features including multiplayer AR experiences with Connected Lens technology and new hand tracking capabilities.
Outlook
While specific guidance figures for the second quarter of 2025 were not included in the press release, Snap indicated it would discuss its Q2 2025 outlook during its earnings call and in its investor letter available on the company's investor relations website.
This article is based solely on information provided in Snap Inc.'s press release dated April 29, 2025. The content is for informational purposes only and does not constitute financial, investment, legal, or tax advice. Stock Titan and its writers make no representations as to the accuracy, completeness, or timeliness of the information. Investors should conduct their own due diligence before making any investment decisions.
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