Snap Inc (NYSE:SNAP) shares were climbing Friday after the company reported higher-than-expected earnings for its first quarter.

The results came amid an exciting earnings season. Here are some key analyst takeaways from the release.

Goldman Sachs On Snap

Analyst Eric Sheridan reiterated a Neutral rating while raising the price target from $13.50 to $16.

Snap reported strong first-quarter revenue growth of 21% year-on-year, beating Street expectations, “driven by both direct response (+17% YoY driven by improvements to the ad platform) and brand (+12% YoY),” Sheridan wrote in a note.

He added that the company’s adjusted EBITDA of $46 million was “meaningfully higher” than guidance.

Total DAU (daily active user) growth remained robust in the quarter, with net additions of more than 8 million, the analyst stated. The company also guided to DAU net adds of 9 million for the second quarter, he further said.

Raymond James On Snap

Analyst Josh Beck maintained an Outperform rating while lifting the price target from $15 to $16.

Snap recorded revenues of $1.195 billion, representing 21% growth, which surpassed consensus, while also guiding to higher-than-expected growth of 15% to 18% year-on-year for the second quarter, Beck said.

The company attributed the slowdown in revenue growth to “tougher comps y/y and up to 3pts of seasonality impact from Ramadan and leap day in 1Q24,” he added.

“Significant platform highlights included Snapchat+ subscribers 3x y/y beyond 9M subscribers and spotlight time spent +125% y/y,” the analyst further stated.

Check out other analyst stock ratings.

Morgan Stanley On Snap

Analyst Brian Nowak reaffirmed an Underweight rating while raising the price target from $11 to $12.

Snap’s higher-than-expected revenue growth was driven by “growth across both direct response and brand ads,” while advertisers saw a 75% improvement in purchase conversions, Nowak said.

The company’s results highlight “solid execution to …

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