Log in
E-mail
Password
Show password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Snap beats user, revenue estimates with highest growth in 4 years

07/22/2021 | 04:39pm EDT
FILE PHOTO: A woman stands in front of the logo of Snap Inc on the floor of the New York Stock Exchange (NYSE) in New York City

(Reuters) -Snap Inc on Thursday beat Wall Street estimates for users and revenue in the second quarter, notching the highest growth rates since late 2017 as new features on its messaging app Snapchat attracted more users.

Shares of Santa Monica, California-based Snap rose about 10% to $69.20 in extended trading, after its forecast for the current quarter also came in above expectations.

Snapchat, known for its Stories feature that lets users post updates that disappear after 24 hours, has grown its app into five parts spanning media content and viral short-form video clips to keep users engaged and draw in more advertisers.

Daily active users rose 23% to 293 million during the quarter ended June 30, above analysts' estimates of 290.3 million, according to IBES data from Refinitiv. User growth beat the company's prior best of 22%.

Snap's revenue jumped 116% to $982 million, well above the expectation of $845.9 million. Previously, its strongest growth rate was 66%.

The company continued to grow throughout the pandemic by promoting ad formats on Snapchat geared toward bringing in sales for advertisers, such as letting users swipe up on a mobile ad to go to the brand's website.

Snap forecast third-quarter revenue between $1.07 billion and $1.09 billion, and it expects daily active users to grow 21% to 301 million, both exceeding expectations.

Analysts are expecting revenue of $1.01 billion and daily active users of 298.5 million.

New privacy controls implemented by Apple Inc in April, which were intended to limit digital advertisers from tracking iPhone users without their knowledge, caused "some disruption" to advertiser demand, said Snap's Chief Business Officer, Jeremi Gorman, in a statement.

However, it was too early to gauge the long-term impact on Snap's business, Gorman said.

In order to help brands increase sales, Snap has also invested heavily in augmented reality technology for functions such as helping users virtually try on makeup or clothes.

(Reporting by Sheila Dang and Nivedita Balu; Editing by Devika Syamnath)

By Sheila Dang


ę Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
APPLE INC. -1.06% 145.37 Delayed Quote.10.72%
S&P 500 -0.28% 4443.11 Delayed Quote.18.62%
Latest news "Economy & Forex"
05:55pRefinitiv agrees to pay a civil penalty of $650,000 for failing to report certain swap data -CFTC
RE
05:54pU.S. environment agency urged by 21 states to toughen vehicle emissions rewrite
RE
05:49pFED WILL ALLOW LABOR MARKETS TO 'RUN THEIR COURSE' : Bostic
RE
05:39pChile cenbank to decide on roll-out of digital currency in 2022
RE
05:37pGM backs vehicle emissions reductions goals in EPA proposal
RE
05:34pDogecoin Lost 3.36% to $0.201 at 5 p.m. ET -- Data Talk
DJ
05:34pEthereum Lost 3.67% to $2974.94 at 5 p.m. ET -- Data Talk
DJ
05:34pThe WSJ Dollar Index Rises 0.08% to 87.97 -- Data Talk
DJ
05:34pBitcoin Lost 2.09% to $42695.70 at 5 p.m. ET -- Data Talk
DJ
05:34pEuro Lost 0.21% to $1.1696 -- Data Talk
DJ
Latest news "Economy & Forex"