Snap Grows User Numbers, But Misses Quarterly Revenue Expectations

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As a seasoned Snapchat user and tech enthusiast, I can’t help but feel both exhilarated and slightly amused by the latest developments at Snap Inc. The rapid growth of daily active users and the expansion of Snapchat+ subscribers is undeniably impressive, especially considering my own personal journey from a college student experimenting with the app to a professional in the tech industry.

In the second quarter of 2024, Snap reported a daily active user count of 432 million, marking a growth of 36 million users, equivalent to a 9% rise compared to the same period the previous year.

The earnings reached $1.24 billion, which is an increase from $1.07 billion in the same period last year, yet it fell short of predictions made by financial analysts on Wall Street. The company stated that their advertising sales were affected due to a less favorable advertising market for specific consumer discretionary sectors. Following this announcement, Snap’s shares dropped by 22% after regular trading hours on Thursday.

As a dedicated gamer (and Snapchat user), I’m excited to share some updates about my favorite platform. This year, the social media giant managed to shrink their net loss significantly – from $377 million down to just $249 million compared to last year. That’s impressive!

Over the course of the last quarter, the company strengthened its alliances with the NFL, NBA, and WNBA. These partnerships offer official content on Snap Stories and Spotlight video feeds. Additionally, they unveiled Snap Nation, a feature that grants Snapchat users exclusive opportunities to attend tours and festivals.

Snap is enhancing its app’s content organization and customization by utilizing machine learning algorithms. As a result, the company reports an increase in user engagement, as global viewing time on content has risen by 25% yearly and 10% every three months. There’s also significant growth noted in the amount of time users spend watching Spotlight and Creator Stories.

By the start of the third quarter, Snap projects that it will have approximately 441 million daily active users and is anticipating revenues between $1.335 billion and $1.375 billion.

“Evan Spiegel, our CEO, shared that our community expanded to over 850 million monthly active users in the second quarter alone. Additionally, we now have more than 11 million subscribers for Snapchat+. Our advertising platform has been growing steadily, as the number of active advertisers has more than doubled compared to last year. Excitingly, we’re gearing up to host our Snap Partner Summit on September 17th, where we plan to reveal new improvements to our service.”

More to come.

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2024-08-01 23:57