Tech

Snap generates strong user growth and reduces losses

In the second quarter, the US company Snap increased the number of daily active users of the Snapchat photo app by 23 percent to 193 million, 55 million more than in the same quarter of the previous year. In view of the best user growth in four years, sales rose 116 percent to 982 million US dollars, about 834 million euros, compared to the same period last year. Analysts had expected an increase, but not as high.

The higher revenue is due to the fact that Snap was able to increase the average revenue per user to $ 3.35, an expected $ 2.95. The growth here is very high compared to the same quarter of the previous year at 76 percent, because at that time a user brought sales of only 1.91 dollars.

The bottom line, however, was again not enough for a profit, but the losses could be extremely reduced. Compared to the second quarter of 2020, there is a minus of almost $ 152 million, says Snap’s annual report from Thursday. That is 53 percent less than in the same period last year. Back then the losses were $ 326 million.

Snap CEO Evan Spiegel was delighted with the addition and praised the progress the team has made with the augmented reality platform. The outlook for the third quarter is correspondingly positive: Snap expects sales to increase by 58 to 60 percent compared to the same period of the previous year. Sales should then be at least $ 1.07 billion, but a maximum of $ 1.085 billion. Snap estimates adjusted EBITDA in the range of $ 100 million to $ 120 million. In the same quarter last year it was $ 56 million.

Snap shares rose after hours by 17.68 percent to $ 74.10 on the New York Stock Exchange. Over the year, the share price is up 27 percent.


(olb)

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