Snap Ups Growth: Hits $388M In Revenue YOY, Adds 13M Users

Proving the skeptics wrong, Snap just reported better-than-expected earnings and user growth for the second quarter of the year.

For the quarter ended June 30, the self-described camera company saw revenue increase 48% to $388 million year-over-year, while it added 13 million daily active users (DAUs) during the same period.

Evan Spiegel, Snap’s cofounder-CEO, said the positive results were a long time coming. “The growth in our community, engagement and revenue is the result of several transitions we completed over the past 18 months,” he said on Tuesday.

For the quarter, DAUs reached 203 million compared to 190 million in the first quarter of the year, and 188 million in the second quarter of 2018.

On a daily basis, the average number of “Snaps” grew to more than 3.5 billion in the second quarter.

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Critically, the company said it is finally seeing positive results from improvements to its long-troubled Android application. For example, on the majority of Android devices owned by newer members of the community, users are now sending 7% more Snaps compared to the old version.

Snap sees this metric as an important indicator of the long-term retention of these newer users. In addition, Snap said it is continuing to invest in its Discover platform, with a particular focus on building a sustainable premium content ecosystem.

On a daily basis, audiences watching Discover have grown over 35%, year-over-year, while total daily time spent by users watching Discover increased by over 60% during the same period.

Total daily time spent by users watching “Shows” — Snapchat’s three- to-five-minute premium episodes, which are vertically shot and quickly paced — more than tripled year-over-year.

On the augmented-reality front, Snap recently launched the next generation of AR Lenses that use deep neural networks to modify users’ appearances in real-time.

In response, more than 200 million users played with these new lenses in the first two weeks of their launch.

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