A host of new features on the messaging app Snapchat attracted more users during its latest completed quarter and the growth rate was the highest since the late 2017as the company easily beat estimates of the Wall Street for the number of users and revenues.
The better than expected results helped the shares of the Santa Monica, California-based Snap surge by about 10 per cent following the company reporting forecast for the current quarter better than expectations of the market.
The Stories feature of Snapchat is its best known product where posts and updates by users disappear after 24 hours and over the year4s the platform has grown to offer a range of features to users from media content and viral short-form video clips and has been successful in keeping its users engaged and attract more advertisers.
There was a 23 per cent surge in the number of daily active users of the platform during the second quarter ended June 30, more than estimates of analysts of 290.3 million, according to IBES data from Refinitiv. The growth of user also beat the previous best growth year of 22 per cent.
During the latest completed quarter, Snap reported a 116 per cent jump in its revenues at $982 million which comfortably beat estimates of $845.9 million. The previous strongest revenue growth rates for the company was at 66 per cent.
During the pandemic, the company saw continuous growth as it promoted ad formats on Snapchat designed to bring in sales for advertisers like letting users swipe up on a mobile ad to lead them directly to the website of the company.
Third quarter revenue as forecast by the company was between $1.07 billion and $1.09 billion, and the daily active users’ growth at 21 per cent to 301 million, both of which were much more than what analysts were forecasting, Analysts are expecting revenue of $1.01 billion and daily active users of 298.5 million.
In April this year, Apple Inc implemented new privacy controls aimed at limiting online advertisers from tracking iPhone users without their knowledge resulted in "some disruption" in demand from advertisers, said Snap's Chief Business Officer, Jeremi Gorman, in a statement.
Gorman however said that it was took early yet to make any assessment of the long term impact of the move by Apple in the company’s business.
Large investments have been made by Snap in augmented reality technology for features such as helping users virtually try on makeup or clothes with the target of helping brands to increase sales.
(Source:www.usnews.com)
The better than expected results helped the shares of the Santa Monica, California-based Snap surge by about 10 per cent following the company reporting forecast for the current quarter better than expectations of the market.
The Stories feature of Snapchat is its best known product where posts and updates by users disappear after 24 hours and over the year4s the platform has grown to offer a range of features to users from media content and viral short-form video clips and has been successful in keeping its users engaged and attract more advertisers.
There was a 23 per cent surge in the number of daily active users of the platform during the second quarter ended June 30, more than estimates of analysts of 290.3 million, according to IBES data from Refinitiv. The growth of user also beat the previous best growth year of 22 per cent.
During the latest completed quarter, Snap reported a 116 per cent jump in its revenues at $982 million which comfortably beat estimates of $845.9 million. The previous strongest revenue growth rates for the company was at 66 per cent.
During the pandemic, the company saw continuous growth as it promoted ad formats on Snapchat designed to bring in sales for advertisers like letting users swipe up on a mobile ad to lead them directly to the website of the company.
Third quarter revenue as forecast by the company was between $1.07 billion and $1.09 billion, and the daily active users’ growth at 21 per cent to 301 million, both of which were much more than what analysts were forecasting, Analysts are expecting revenue of $1.01 billion and daily active users of 298.5 million.
In April this year, Apple Inc implemented new privacy controls aimed at limiting online advertisers from tracking iPhone users without their knowledge resulted in "some disruption" in demand from advertisers, said Snap's Chief Business Officer, Jeremi Gorman, in a statement.
Gorman however said that it was took early yet to make any assessment of the long term impact of the move by Apple in the company’s business.
Large investments have been made by Snap in augmented reality technology for features such as helping users virtually try on makeup or clothes with the target of helping brands to increase sales.
(Source:www.usnews.com)
