Snap Inc., the parent company of Snapchat, announced financial results for the quarter ended March 31, 2025, on Tuesday. It reported slightly better-than-expected revenue for the first quarter but withheld guidance for the current period, citing growing uncertainty in the advertising market amid broader economic challenges.
“We surpassed an important milestone in Q1, with our community growing to over 900 million monthly active users,” said Evan Spiegel, CEO. “Quarterly revenue increased 14% year-over-year, driven by the progress we have made with our direct-response advertising solutions, continued momentum in driving performance for small and medium sized businesses, and the growth of our Snapchat+ subscription business.”
The company generated $1.36 billion in revenue in the quarter ending March 31. Despite the modest beat, Snap declined to provide a sales forecast for the second quarter, warning that macroeconomic volatility could weigh on advertising demand. Chief Financial Officer Derek Andersen told investors on an earnings call Tuesday that some advertisers are scaling back in response to changes in U.S. trade policy.
Despite the economic pressures, Snap reported some bright spots. Its advertiser base grew 60 percent compared with the same quarter last year, and direct response ads, those that drive specific user actions like purchases, accounted for 75 percent of its ad revenue, the highest share to date.
Q1 2025 Financial Summary
• Revenue was $1,363 million, compared to $1,195 million in the prior year, an increase of 14% year-overyear.
• Net loss was $140 million, compared to $305 million in the prior year.
• Adjusted EBITDA was $108 million, compared to $46 million in the prior year.
• Operating cash flow was $152 million, compared to $88 million in the prior year.
• Free Cash Flow was $114 million, compared to $38 million in the prior year.
Key Highlights
• Reached more than 900 million monthly active users (MAU)
• Daily active users (DAU) were 460 million in Q1 2025, an increase of 38 million, or 9%, year-over-year.
• The number of views on Spotlight posts les than 24 hours old doubled year-over-year—which contributes to a
• Total active advertisers grew by 60% year-over-year in Q1.
• SKAdNetwork reported app purchases grew more than 30% year-over-year in Q1.
• Rolled out improvements to our automated Target Cost (tCPA) bidding strategy, leveraging ML technology to
help advertisers achieve more consistent cost-per-action results.
• Expanded our Agency Partner Program to agencies of all sizes
• Began early testing of Sponsored Snaps in auction in Q1 as Snap looks to expand Sponsored Snaps to additional bidding objectives.
• Launched our new brand suitability solutions, giving advertisers even more control when it comes to content
adjacency.
• Other Revenue, the majority of which is Snapchat+ subscription revenue, increased 75% year-over-year in Q1