Snap beats estimates after short-lived coronavirus bounce
Snap has surpassed analyst revenue estimates for its second quarter, as advertisers cashed in on an initial boom in user numbers during the pandemic.
The Snapchat parent said its daily active users (DAUs), which advertisers watch to measure its growth, rose 17 per cent to 238m in the three months to the end of June.
Analysts had been expecting DAUs of 238.44m, according to IBES data from Refinitiv.
Snap’s revenue jumped by the same amount to $454.2m during the quarter, above estimates of $440.8m.
Snap’s share price, which is usually volatile after it reports results, fell as much as 11 per cent in after-hours trading as its losses jumped.
The company’s net loss increased to about $326m, up from $255.2m a year earlier.
The figures come as many major companies pivoted away from advertising on rival platforms such as Facebook, due to concerns over the proliferation of hate speech.
“The growing focus on brand safety and privacy across the entire industry places us in a unique position of strength as we have invested in these areas from the beginning of our business,” Snap chief executive Evan Spiegel said in a statement.
Meawhile in the current quarter, revenue growth is so far charting at 32 per cent — surpassing Snap’s internal model of revenue growth of 20 per cent, according to finance chief Derek Andersen.
The company also forecast DAUs to be between 242m and 244m in the current quarter.