On Tuesday, Snapchat exceeded analyst estimates on growth in usage and revenue, benefiting from a better version of its Android application and the launch of new augmented reality photo lenses.
The company said the number of daily active users increased from 203 million in the second quarter ended June 30 from 190 million in the prior quarter. The number of users has also increased by 188 million a year ago.
Shares of Snap jumped 9% to $16.29 in after-hours trading.
The latest daily active user figure, widely watched by investors and advertisers, beat analysts’ average estimate of 192.2 million, Snap’s revenue, which it earns from selling advertising on the app, jumped about 48% to $388 million and beat Wall Street’s average estimate of $359.7 million according to IBES data from Refinitiv.
In recent months, it scored wins with its augmented reality lenses, launched mobile games within Snapchat in partnership with game developers such as Zynga and invested in more content on Discover, the part of the app that houses original shows and content from media partners.
Net loss narrowed to $255.2 million, or 19 cents per share, from $353.3 million, or 27 cents per share, a year earlier. Excluding items, the company lost 6 cents per share. Analysts were expecting a loss of 10 cents per share.
Snap expects third-quarter revenue in the range of $410 million to $435 million. Analysts on average were expecting revenue of $402.1 million, according to IBES data from Refinitiv.
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27 September, 2019