For the first three months of the year, Snapchat-parent reported revenue rose 21% to $1.19 billion, surpassing LSEG’s estimate of $1.12 billion. More importantly, Snap finally reported double digit sales growth, after six consecutive quarters of single-digit growth and declines. Advertising brought in $1.11 billion to the revenue table, while Other Revenue grew 194% YoY to $87 million, fueled by more than 9 million Snapchat+ subscribers. As a result, adjusted EBITDA of $46 million surpassed expectations as StreetAccount expected a loss of $68 million. Adjusted EPS amounted to 3 cents, also greatly surpassing LSEG’s estimate of a 5 cents loss. Net loss narrowed to $305.1 million or 19 cent loss per share.

Last week, Facebook-parent, Meta Platforms (NASDAQ:META), surpassed both top and bottom line analyst estimates with its latest earnings report. However, Meta shares plunged due to a weak revenue guidance. For its first quarter, Meta reported its revenue rose 27% to $28.65 billion, which is its fastest growth rate since 2021, with net income more than doubling to $12.37 billion as besides the revenue acceleration, it did a great job in lowering sales and marketing costs by 16% YoY. Ad business, that makes most of Meta’s revenue, rose as much as 27% to $35.64 billion.However, Meta also increased its capital expenditures forecast due to ramping up AI investments. It guided for the 2024 capital expenditures in the range between $35 billion and $40 billion. Although Meta still hasn’t delivered its metaverse promise, its track record when it comes to social media and ads is as strong as it gets.