Shares of Snap (SNAP 9.19%) jumped 7.4% on Friday, following the social media company's first-quarter earnings release.
The parent company of Snapchat said its revenue soared 66% year over year to $770 million. The gains were fueled by a 22% increase in daily active users, to 280 million, as more people turned to online entertainment during the coronavirus pandemic.
Still, Snap is not yet profitable; it generated a net loss of $287 million during the quarter. However, it did produce positive free cash flow of $126 million.
"We began 2021 by achieving our highest year-over-year revenue and daily active user growth rates in over three years during the quarter and delivering positive free cash flow for the first time in Snap's history as a public company," CEO Evan Spiegel said in a press release.
Management expects Snap to deliver revenue of $820 million to $840 million in the second quarter. That would represent year-over-year growth of roughly 83% at the midpoint and a significant acceleration from the first quarter.
"The strength of our business underscores our relentless focus on product innovation and is a testament to our team's ability to execute well together over the long term," Spiegel said.