Snap Of inc
Revenue increased in the latest quarter, as the company attracted more users to access online and mobile devices as a result of the coronovirus epidemic in Snapchat as well as attracting advertisers.
According to the Facts Poll, analysts ‘revenue grew 52% to $ 678.7 million, which was $ 557 million according to analysts’ estimates. While many advertisers resumed or increased their marketing budgets during the quarter, the company said that businesses redirected money to self-service advertising, a faster way to launch campaigns while reducing costs.
The shares gained more than 20% in after-hours trading at $ 35. Snap’s shares were up 74% this year through Tuesday’s close.
On a conference call on Tuesday, Snap’s chief business officer, Jerry Gorman, said the company landed business from advertisers who sought to “align their marketing efforts with platforms that share their corporate values.” A group of companies received calls from civil-rights groups earlier this year to withdraw ad spending spent on Facebook, in which they described hate speech and misinformation as a failure of the company. Pinterest Inc. Said in July that its second quarter performance helped firms that moved to their platforms with money from Facebook.
Snap is one of the first ad-dependent companies to post results from the most recent period, and its momentum could bode well for the Tech Titans ahead of an extended holiday-shopping season. The last quarter of the year is typically the strongest for Snap, and officials said that if current conditions continue, revenue could grow between 47% and 50% from the previous year.
Chief executive Evan Spiegel said he was pleased with the company’s growth over the period and that it would continue to invest long-term on things including augmented reality for its app.
At The Wall Street Journal’s Tech Live conference on Tuesday, Mr. Spiegel said that as a result of the epidemic, brands are more willing to try augmented reality to reach customers. Makeup and shoe brands, for example, are using Snap’s augmented reality to give users a try on their products.
“The epidemic has forced all of us to rethink the way we do business,” Mr. Spiegel said at the virtual conference.
Users’ daily time spent shows increased by 50% compared to shows from a year ago, Snap said, as the company is working to increase the amount of original content through its app. The company contented millions of viewers with a “VS the World” documentary with mixed martial artist Conor McGregor and launched new unreleased series with celebrities such as Jaden Smith and Kevin Hart.
The company reduced its third quarter losses to $ 199.8 million from $ 227.4 million in the year-ago period.
Write Kimberly Chin at [email protected]
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The version printed on October 21, 2020 was screened as ‘Snapchat Revenue, Users Beat Estimate’.