Snap beats revenue estimates as it adds more users

A woman stands in front of the logo of Snap Inc. on the floor of the New York Stock Exchange while waiting for Snap Inc. to post its IPO, in New York March 2, 2017. — Reuters pic
A woman stands in front of the logo of Snap Inc. on the floor of the New York Stock Exchange while waiting for Snap Inc. to post its IPO, in New York March 2, 2017. — Reuters pic

NEW YORK, Oct 23 — Snap Inc beat analysts’ quarterly estimates for revenue yesterday as it added more users to its photo messaging app Snapchat, helped by new features such as games within the app.

The social media company said it had 210 million daily active users in the third quarter ended September 30, up from 203 million in the prior quarter. It had 186 million users in the year-ago quarter.

The number, a widely watched metric by investors and advertisers, was above analysts’ average estimate of 206.6 million, according to IBES data from Refinitiv.

Soon after it was launched in 2011, Snap became an instant hit with younger users because of its quirky visual effects that allows them to change their gender in photos or add a dog filter on their face.



Snap Chief Executive Officer Evan Spiegel said in prepared remarks that the growth in businesses this year put the company “on a clear path to Q4 Adjusted Ebitda profitability.”

Spiegel said now that the new Android app has been rolled out, the company is working to create a better user experience in its international markets, helping to contribute to the growth in daily active users.

Snap had rolled out a revised version of its Android app at the end of the first quarter in order to attract users in developing markets, where Android phones are more popular.

Snap was able to attract users recently with its augmented reality filters in addition to launching mobile games within Snapchat by partnering with game developers such as Zynga Inc. The company also introduced dynamic advertising last week that automatically creates ads and targets audiences in real-time.

Revenue, which the company generates from selling advertising on the app, jumped about 50 per cent to US$446.2 million (RM1.865 billion) and beat an average analyst estimate of US$435.05 million.

Average revenue per user jumped 33 per cent to US$2.12 during the quarter from a year earlier.

The company’s net loss narrowed to US$227.4 million, or 16 cents per share, from US$325.1 million, or 25 cents per share, a year earlier.

Excluding items, Snap posted a loss of four cents per share in the quarter. Analysts were expecting a loss of five cents.



Snap expects fourth quarter revenue in the range of US$540 million to US$560 million. Analysts on average were expecting revenue of US$555.4 million. — Reuters

Source: The Malay Mail Online





Leave a Reply

Your email address will not be published. Required fields are marked as *

Time limit is exhausted. Please reload CAPTCHA.