SNAP stock is moving up by over 2%, now selling at $12.28 in the opening session after Snap Inc (NYSE:SNAP) posted solid earnings and sales growth for the first fiscal quarter.

The multimedia messaging app Snapchat may have added new features and undergone major tweaks, but that did not have any major impact on SNAP stock, as it remained largely stagnant. The company posted better than estimated profit and sales in its latest quarter, in addition to recording significant user growth.

Beats Estimates

For a loss making organization like Snapchat, recording lower losses than those estimated by analysts is a big thing for SNAP stock. The company published its earnings late Tuesday, and its overall revenues beat analysts’ estimates.

The total revenue for the quarter stood at $320 million, a 39% year-on-year improvement. However, the more important headline figure for the company is perhaps the net loss, and although it was lower than what the analysts estimated, it remains a worrying trend for the company overall. The net loss for Snapchat stood at $310.4 million for the quarter or 23 cents loss a share, down from a loss of $385.8 million in the same quarter last year.

The company lost 10 cents a share, ahead of analysts’ estimates of a loss of 12 cents per share. In addition to that, the company also improved its cash flow position by reducing cash flow loss to $66 million from $232 million in the year-ago quarter.

Tweaks and User Growth

The move to launch original shows on the app and a complete overhaul of the Android app were some of the biggest initiatives from the company to raise user growth.

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Although the year over year daily active user growth is at a negative, it has grown from what it stood in the previous quarter. In the previous quarter, the number of daily active users stood at 186 million, but in the latest quarter, that figure rose to 190 million. In the same quarter last year, it stood at 191 million. However, the growth in daily active users is closely watched by SNAP stock investors and remains an important metric for any future investment. It also beat analysts’ estimates of 187.2 million daily active users.

The company projects revenue for the second quarter to be between $335 million and $360 million, which would equate to about 33% growth at the midpoint. The company also estimates an adjusted EBITDA loss between $150 million and $125 million, which would be an improvement from the company’s loss of $169 million in the year-ago second quarter.

SNAP stock has jumped over 105% so far this year.

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