Snap Inc. (NYSE: SNAP) today announced financial results for the quarter ended March 31, 2021.

Revenue increased 66% to $770 million in Q1 2021, compared to the prior year.
Net loss and Adjusted EBITDA were $(287) million and $(2) million in Q1 2021, respectively, compared to $(306) million and $(81) million in the prior year, respectively.
Operating cash flow improved by $131 million to $137 million in Q1 2021, compared to the prior year.
Free Cash Flow improved by $131 million year-over-year to reach $126 million in Q1 2021, marking our first quarter of positive Free Cash Flow as a public company.
Common shares outstanding plus shares underlying stock-based awards totaled 1,629 million at March 31, 2021, compared to 1,589 million one year ago.
“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,” said Evan Spiegel, CEO. “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.”

Q1 2021 Summary & Key Highlights

We have an active, engaged community:

DAUs were 280 million in Q1 2021, an increase of 51 million, or 22%, year-over-year.
DAUs increased sequentially and year-over-year in each of North America, Europe, and Rest of World.
DAUs increased sequentially and year-over-year on both iOS and Android platforms.
For the first time, the majority of our DAUs for the quarter were on the Android version of our application.
We invested and innovated in our content offerings:

In March, over 125 million Snapchatters used Spotlight, our newest platform surfacing the most entertaining Snaps from our community.
We launched Spotlight in three new countries–India, Mexico, and Brazil–making it live in a total of 14 countries.
We launched a record 321 new channels in Q1 2021 with over 150 partners from 12 countries.
Over 75 million Snapchatters watched beauty-related content each month on Discover in Q1 2021.
Over 20 million viewers have watched “Ryan Doesn’t Know,” our new Snap Original starring Ryan Reynolds.
We launched our first local market Snap Original, “Phone Swap”, in India.

🙀 Launching for #EarthDay: our AR Lens collab w. @Snapchat & artist @louismasai to bring his LA mural to life using 5G tech.

All to support @NWF’s #SaveLACougars mission to build a wildlife crossing over US 101—to which we’re DONATING $100k! #5GBuiltRight pic.twitter.com/43DAGSHidm

— Verizon (@Verizon) April 22, 2021

We invested and innovated in our camera and augmented reality platforms:

The number of Snapchatters engaging daily with our augmented reality Lenses grew more than 40% year-over-year in Q1 2021.
Over 260 million Snapchatters engaged with Valentine’s Day Lenses over a two-week period.
Lunar New Year Lenses reached over 125 million users.
We released Lens Studio 3.4 with improved capabilities around hand tracking, 3D multi-body tracking, and full body segmentation and a new asset library of 3D models, materials, scripts, and presets to help creators build Lenses.
On average, Lenses created by our community via Lens Studio accounted for more than 50% of daily Lens views.
We strengthened our capabilities to drive improved outcomes for advertisers:

We partnered with the fitness company Sweat to launch a full body Lens to track body movement while exercising in order to recommend optimal form to Snapchatters.
We partnered with Gucci to launch the first sponsored LiDAR Lens which projected a 3D camping site around the user to promote the The North Face x Gucci collaboration.
We partnered with American Eagle to launch a sponsored Lens which displayed different types of American Eagle jeans in AR and included specific fits, washes, and the option to click to purchase.
We announced a partnership with newspaper publisher Gannett, which will promote our advertising solutions to the company’s network of more than 100,000 small business advertisers across the US and Canada.
In March, we acquired Fit Analytics, a sizing technology company that powers solutions for retailers and brands.

We expanded our partner ecosystem:

We announced a partnership with Samsung, which will feature popular Snapchat Lenses in the native camera application on select new smartphones.
We launched a multi-year partnership with digital music distributor DistroKid allowing artists who control their own music publishing to instantly distribute on Snapchat.
We launched our largest Camera Kit integration to date with Moj, a leading short-video platform in India, giving Moj creators access to Snapchat’s Lens Carousel directly inside the Moj app.
We launched Crazy Run in February as part of a multi-title partnership with game developer Gismart, and the game has already reached seven million players.

Financial Guidance

The following forward-looking statements reflect our expectations for the second quarter of 2021 as of April 22, 2021, and are subject to substantial uncertainty. This guidance assumes constant foreign currency rates, and among other things, that no business acquisitions, investments, restructurings, or legal settlements are concluded in the quarter. Our results are based on assumptions that we believe to be reasonable as of this date, but may be materially affected by many factors, as discussed below in “Forward-Looking Statements.”

Q2 2021 Outlook

Revenue is estimated to be between $820 million and $840 million, compared to $454 million in Q2 2020.
Adjusted EBITDA is estimated to be between $(20) million and breakeven, compared to $(96) million in Q2 2020.