Snap reported second-quarter revenues on Tuesday.
Angela Lang/CNET
Snap, the moms and dad business of ephemeral-messaging app Snapchat, stated Tuesday that its day-to-day active user base grew 7% to 203 million in the 2nd quarter, recommending the business was seeing success with its revamped Android app. That’s a boost of 13 million from the 190 daily active users the business reported in the very first quarter.
Snap CEO Evan Spiegel throughout a call with experts stated that brand-new Snapchat Lenses, an enhanced truth function that permits individuals to misshape their faces, assisted to sustain user development. One popular filter that Snapchat launched this year permitted users to alter their gender in images.
“The popularity of these Lenses drew millions of people into our rebuilt Android application, where they experienced the new and improved Snapchat that led to increased engagement,” Spiegel stated. The development in users is the greatest gain the business has actually had because the 2nd quarter of 2016, he stated.
Snap has actually been coming to grips with obstacles, consisting of executive turnover, and was experiencing successive drops in day-to-day active users. Growth has actually returned this year, though Snap’s user base is still smaller sized than those of rivals such as Facebook, Instagram, TikTok and Twitter. In April, the business upgraded Snapchat’s Android app with a revamped video camera and less bugs. The business likewise launched brand-new video games and initial programs on Snapchat in an effort to keep users on the platform longer.
“Now the challenge is to convince those newly added users to stick around and continue to use Snapchat on an ongoing basis,” Debra Aho Williamson, an expert with eMarketer, stated in a declaration. “As long as it continues to roll out compelling new features, they will do that.”
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Snap saw a 10% increase in the retention rate of people who opened the ephemeral-messaging app for the first time after it revamped its Android version, the company said. Most of its growth in daily active users came from outside of North America and Europe, data from Snap shows.
Snap reported $388 million in revenue in the second quarter, which was well above the $359.7 million that analysts surveyed by Thomson Reuters expected.
The company posted a loss of 6 cents per share, beating expectations of a loss of 10 cents per share. Snap’s net loss narrowed to $255 million from $353.1 million during the same period last year.
The company’s stock is up more than 11 percent to $16.54 per share in after-hours trading.
Originally published July 23, 1:36 p.m. PT
Update, 1:46 p.m. PT: Adds more details about Snap’s user growth
Update, 2:33 p.m. PT: Adds remarks from earnings call and from an analyst
Update, 2:57 p.m. PT: Adds information about popular Snapchat filter
