Snap reported first-quarter results Thursday that beat analysts' estimates for earnings and revenue.on Thursday that beat analysts' estimates and showed a return to double-digit revenue growth. Shares soared more than 27% in extended trading.$2.83 vs. $2.67 expected, according to StreetAccount
Adjusted EBITDA for the first quarter was $46 million, far surpassing the $68 million loss expected by analysts, according to StreetAccount. In its investor letter, Snap said adjusted EBITDA"exceeded our expectations" and was primarily driven by operating expense discipline, as well as accelerating revenue growth.
For its second quarter, Snap expects to report revenue between $1.23 billion and $1.26 billion, up from the $1.22 billion expected by analysts, according to StreetAccount. Snap said adjusted EBITDA will fall between $15 million and $45 million, compared to Wall Street's expectations of $15.5 million.
"We will continue to assess our infrastructure investment levels based on what is in the best long-term interest of our business," Snap said.