Snap beats expectations as 7m new users sign up
Snapchat’s parent company Snap beat expectations in the third quarter of the year, as investment in new technology such as augmented reality continued to drive growth.
Revenue soared 50 per cent to $446m (£346.2m) and the company’s net loss shrunk from $325.1m in the third quarter of 2018 to $227.3m this year.
Read more: Snap reduces overseas losses as revenue doubles
The company reported a loss per share of 4 cents against estimates of 5 cents per share.
Meanwhile, the platform’s number of active users rose from 203m last quarter to 210m in the three months to 30 September.
Today the company said it was continuing to invest in its augmented reality platform, games offering and tools for developers.
Last month the company announced the launch of a new selection of Snap Originals, the firm’s made-for-mobile TV shows, after it unveiled its first original show three years ago.
The total daily time users spent watching Snapchat’s “Discover” feature, which hosts the original shows, increased 40 per cent year on year.
Snap chief executive Evan Spiegel said: “We delivered strong results this quarter, and we are pleased that the investments we have made are continuing to drive the growth of our community and our business.
“We are a high growth business, with strong operating leverage, a clear path to profitability, a distinct vision for the future, and the ability to invest over the long term.”
Snap returned to growth in the first quarter of this year following a turbulent period for the company in 2018.
Read more: Disgruntled Snapchat users move to Instagram after redesign
A botched redesign pushed users away from the temporary photo sharing platform and competitors such as Instagram launched their own disappearing stories and messages function.
The social media firm’s share price has recovered after it slumped to an all-time low below $5 last year and is trading at around $14, however it is yet to reach its issue price of $17.
Main image credit: Getty