Snap Shares Fall Despite Q1 Revenue Growth

Snap Inc. reported first-quarter revenue of $1.36 billion, a 14.1% year-over-year increase that surpassed expectations, while narrowing its quarterly loss to $139.6 million. The company surpassed 900 million monthly active users and saw its paid Snapchat+ subscription reach 15 million subscribers. Despite these gains, Snap withheld financial guidance for the second quarter, citing ongoing macroeconomic headwinds and uncertainty in advertising demand. The number of advertisers on the platform increased 60% year-over-year, with direct-response ads accounting for a record 75% of ad revenue. Snap also reduced its full-year adjusted operating expenses and stock compensation targets to better match realized revenue growth. Following the announcement, Snap's shares fell more than 7% in extended trading as investors reacted to the company's cautious outlook.