After Snap Inc. released its better-than-expected financial report for Q2 2019, its stock jumped almost 12 per cent during after-hours trading. The Snapchat parent company blew through all fiscal predications for the quarter, reporting a revenue of $388m (£311m), up 48 per cent year-on-year, versus an estimated $360.48m.
Snapchat also reported its daily active users to have reached 203 million, up 8 per cent year-on-year, versus the 191.7m DAU estimated. Not only did revenue and DAUs beat expectations, Snap’s losses were also smaller than analysts predicted. In Q2 2019, Snap’s operating loss improved $53 million to $305m, and its net loss improved $98 million to $255m.
“The growth in our community, engagement, and revenue is the result of several transitions we completed over the past 18 months,” said Evan Spiegel, CEO. “We look forward to building on our momentum and making significant ongoing progress in each of these areas.”
Snap, which added 13m DAUs in Q2 2019, attributes its success to investing more time and money into improving its Android app, Discover platform, augmented reality, Snap Games, and Snap Kit, its set of developer tools.
eMarketer principal analyst Debra Aho Williamson commented: "It’s great to see Snap showing strong signs of growth this quarter. Clearly the relaunch of the Android app has had a meaningful impact on the Q2 user figures, especially outside of the US and Europe, where the Android operating system is especially popular. The popular face filters have also helped drive usage and engagement. Now the challenge is to convince those newly added users to stick around and continue to use Snapchat on an ongoing basis. As long as it continues to roll out compelling new features, they will do that.”