Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Snap adds more users than Wall Street expected as improved app takes hold

EconomyApr 22, 2021 05:00PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
3/3 © Reuters. FILE PHOTO: A portrait of the Snapchat logo in Ventura 2/3

By Sheila Dang

(Reuters) -Snap Inc on Thursday beat Wall Street estimates for user growth and revenue as the improved Android version of its popular messaging app Snapchat attracted more users, but growth slowed within North America.

Shares of Snap (NYSE:SNAP) rose 3.5% in trading after the bell.

Daily active users (DAUs), a metric closely watched by investors and advertisers, rose 22% year-over-year to 280 million in the first quarter. Analysts had expected 275.3 million, according to IBES data from Refinitiv.

Most of the user growth continued to come from outside North America, rising 57% from the prior-year quarter.

Snap embarked on rebuilding its Android app, which struggled with technical bugs, back in 2018. Snapchat's Android user base now exceeds those on Apple (NASDAQ:AAPL) iOS for the first time, the company said.

As more people downloaded the new app outside the United States, where Android phones dominate over iPhones, Snap added support for more languages and added more media content geared toward audiences in certain countries.

It launched an original show called "Phone Swap India" in March on the Discover section of Snapchat, which houses original content and shows from media partners.

Revenue, which Snap generates mainly from advertising, grew 66% to $770 million in the quarter ended March 31, beating Wall Street's consensus estimate of $743 million.

Snap has increasingly invested in augmented reality technology, betting that it can help brands market products like clothes and makeup to tech-savvy young users.

In March, Snap acquired Fit Analytics, a tech company that helps customers virtually determine if clothing will fit.

"Augmented reality remains one of our biggest opportunities as we look to the future," said Snap Chief Executive Evan Spiegel, in prepared remarks released before an earnings call with analysts.

Snap's net loss narrowed to $286.9 million, or 19 cents per share, from $305.9 million, or 21 cents per share, a year earlier.

The company forecast second-quarter daily active users to grow 22% to 290 million, and revenue to be between $820 million to $840 million.

It added it was unclear how a new privacy notification on iPhones would affect the business.

Apple is set to begin rolling out a pop-up notification on iPhones on Monday, which would prompt users to allow apps to track them across other apps and websites to deliver personalized advertising. Facebook (NASDAQ:FB) and other companies that earn money from mobile advertising have criticized Apple's plans, arguing it would lead to lower ad revenue.

Snap adds more users than Wall Street expected as improved app takes hold
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email