Snap Inc. (SNAP) stock declined by 2.14 % at the last trading close whereas the SNAP stock price gains by 5% at the last check in the after-hour trading session after SNAP has announced its first-quarter 2021 financial results, today. Snap Inc. is a camera manufacturer. According to SNAP reinventing the camera is the only way for them to change people’s lives and communication. SNAP helps people express themselves, live in the moment, think about the environment, and have fun together, which contributes to human development.
Today SNAP has released its first-quarter 2021 financial results which has surpassed the expectations. Given below is the summary:
- Relative to the previous year, SNAP’s revenue jumped by 66% to $770 million in Q1 2021.
- In Q1 2021, net loss and Adjusted EBITDA were $(287) million and $(2) million, respectively, relative to $(306) million and $(81) million the previous year.
- For Q1 2021, SNAP’s operating cash flow increased by $131 million to $137 million, relative to the previous year.
- For the first quarter of 2021, Free Cash Flow increased by $131 million year over year to $126 million, representing the first period as a public corporation with positive Free Cash Flow.
- At March 31, 2021, there were 1,629 million common shares outstanding plus shares representing stock-based rewards, up from 1,589 million a year before.
Evan Spiegel, the CEO of SNAP commented that SNAP kicked off 2021 with the fastest year-over-year sales and regular active customer growth rates in over three years, as well as healthy Free Cash Flow for the first time in SNAP’s history as a public firm. Snap’s success demonstrates its unwavering commitment to product innovation, as well as the team’s ability to work well together over time.
2021 Business Outlook
- SNAP teamed up with Sweat, a workout brand, to release a full-body Lens that tracks body activity while exercising and recommends proper form to Snapchatters.
- To support the “The North Face x Gucci partnership”, SNAP collaborated with Gucci to launch the first supported LiDAR Lens, which mapped a 3D camping site around the user.
- SNAP collaborated with American Eagle to introduce a branded Lens that showed various styles of American Eagle denim in AR, including exclusive fits, washes, and the ability to buy.