Snap back... First, CEO Evan Spiegel changed his office uniform from t-shirt to nicer t-shirt. Then Snap rolled out its Games initiative last month. Now the mojo's officially returned after its 1st quarter earnings beat expectations. Our highlights:
- Revenues rose 39% to $320M.
- The number of Snapchat daily users rose 2% to 190M — That's more than Twitter.
- A new Android app upgrade is finally done that's less derpy. It's already increased snaps sent by 6% in the first week because the app simply opens faster.
- It spent more cash on the biz than it made (aka "negative cash flow") but that deficit shrank from $232M to just $66M.
World War Gen Z... This report was a reminder of how incredibly engaged the youngest generation of adults (and future adults) in America is with Snap:
- 75% of 13-34 year-olds snap daily.
- 90% of 13-24 year-olds do.
- And they're all still the "most coveted demographic" for advertisers.
But are they taking ads from Facebook?... Both Twitter and Snap's earnings delighted Tuesday (Twitter stock rose 16%, Snap gained 7%). Both grew ad revenues — But where were those ads before switching to Twitter & Snap? They could've taken ads away from Google or Facebook. Zuck will reveal some answers when his baby releases earnings later today.
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