- Snapchat parent company Snap beat analysts' expectations for Q2 2019, and its stock is up 12%.
- It posted greater-than-expected revenues and users numbers, and its losses were smaller than Wall Street was anticipating.
- Despite facing tough opposition from Instagram, Snapchat has been making a comeback over the last year.
Snap Inc. handily beat Wall Street's expectations for its second quarter of 2019, sending its stock jumping nearly 12% in after-hours trading.
On Tuesday, the Snapchat parent company announced its Q2 2019 financial results — which included smaller-than-expected losses as well as higher-than-anticipated reveneues and daily user numbers.
The majority of Snapchat's user growth over the quarter was driven by the popularity of its augmented reality lenses feature, which have provided viral hits for the company — most notably a filter that allows users to virtually switch their gender.
In a copy of his prepared remarks shared ahead of a call with analysts, CEO Evan Spiegel said: "Today, more than 75 percent of the 13-34 year-old population in the United States is active on Snapchat, making us larger than
services like Facebook and Instagram among this audience, and demonstrating the broadbased appeal of our service."
Here are the key numbers, as well as the consensus estimates, via Bloomberg:
- Revenue: $388 million, up 48% year-on-year (versus estimated $360.48 million)
- Daily Active Users: 203 million, up 8% year-on-year (versus 191.7 million estimated)
- Earnings Per Share: Loss of $0.06 (versus loss of $0.10 expected)
The Santa Monica-based tech firm's stock has been steadily rising for the last seven months, after hitting record lows in the face of intense competition from Facebook-owned competitor Instagram. Snap's revenues have been growing, and a long-awaited Android redesign is helping to drive new user growth (users are sending 7% more snaps than on the old app, the company says).
Data released by Snap to accompany its quarterly results indicate that much of the new user growth came from outside of North America and Europe. In total, it added 13 million DAUs — its highest since the second quarter of 2016.
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