Snapchat inc’c original content and restored Android app assisted to add Snapchat user’s doe the first time in 3 quarters. But that was not sufficient to push its shares higher after the sharp run-up in 2019.
Snapchat stated on Tuesday that the daily active Snapchat users’ number reached 190 million from 186 million in the first quarter.
The figure, widely observed by advertisers and investors, beat analysts’ forecast of 187.2 million daily users, as per IBES data from Refinitive.
Directors left the Snap in droves late 2018 after a widely criticized redesign of the app. Any uptick is a welcome sign Snap has halted user losses.
Evan Spiegel, Chief Executive, has worked to turn Snapchat’s business around while the company largely evaded privacy and other scandals.
Spiegel also said that “We see several opportunities to rise our investments, and will continue to succeed our business for loner growth.
Overall revenue generated nearly 40% in the quarter from a year earlier. But Snap did not give precise guidance on future user growth. Shares of Snapchat, which grew 12% immediately after the results.
Nicholas Hyett, the analyst at Hargreaves Lansdown, said, “Things are refining at Snap, and it could be putting it slightly – although with the shares up 100% in 2019.
In order to increase users on the app, Snap faces stiff competition from Facebook’s Instagram. The app launched more than 50 publisher stories and shows during the reported quarter.
It also recreated Android app that had more viruses and a user experience that its iOS app. Snapchat had prioritized growth on the Apple ecosystem with its stock market entrance in 2017.
Snapchat’s revenue, jumped 39% to USD 320.4 million and beat the average estimate of USD306.6 million.
Revenue growth has been facilitated by new ad setups that include inescapable commercials on its original shows. The original shows are stored within Discover page.
Jeremi Gorman, Chief Business Officer, stated that Snapchat’s ad sales team has updated in the U.S. as of 1st April to better serve advertisers as per their industry.
Snap’s concentrate on communication and privacy between friends has helped it evade problems with misinformation. And the spread of vulgar content, which have been the big issue for Google and Facebook.