Starting back in 2018, messaging app Snapchat started revising its Android app and the results have been amazing. According to Reuters, for the first time, during the first quarter of 2021, the number of the app's Android users exceeded the number of its iOS users. Snapchat's Android app was slow and the update made it run faster while improving key features like Lenses.
Also helping the Android version of Snapchat gain traction, parent company Snap added more content geared toward certain countries and started to support more languages outside the U.S. where Android users handily exceed those using an iPhone. Snap CEO Evan Spiegel called the swap between Android and iOS users "a critical milestone that reflects the long-term value of the investment we made to rebuild our Android application."
Additionally, for the first time since going public, Snap recorded a quarter with positive cash flow ($126 million versus negative cash flow of $95 million during the same quarter last year).
In March, Snapchat launched "Phone Swap India" on its Discover section. That is where original programming and shows created by the app's media partners can be found. The number of Daily Active Users (DAU) rose to 280 million in Q1, a 22% annual hike, and 4.7 million users above analyst expectations of 275.3 million.
Revenue during the period from January through March 2021 rose a stunning 66% to $770 million topping Wall Street estimates of $743 million. Snap's net loss came to $286.9 million from $305.9 million during the same quarter last year. The first quarter net loss was 19 cents a share improving slightly from the 21 cents a share of red ink Snap reported during last year's first quarter.
For the current quarter which ends in June, Snap Chief Financial Officer Derek Andersen says to expect a revenue gain of 80% to 85% with 290 million DAUs. CEO Spiegel said in a statement that "Augmented reality remains one of our biggest opportunities as we look to the future." Just last month the company purchased Fit Analytics, a company that uses AR to determine virtually if clothes will fit.
Snap's shares soared on Friday, the day after the report was released. The stock closed at $61.30 up 7.39% or $4.22. A year ago, Snap was trading under $17.