Snap Inc.’s second-quarter revenue jumped 17 per cent, topping analysts’ estimates, as advertisers rely more on the Snapchat social media app to spread the word about products during the COVID-19 lockdown. Still, daily active users lagged behind the company’s own forecast, sending the shares lower in late trading.
In a statement Tuesday, the Santa Monica, California-based company said daily active users grew 17 per cent to 238 million, compared with the 239 million Snap estimated. Shares slid about 10 per cent in extended trading after closing at US$24.74, near a record high.
The company, whose app is especially popular with young people, drew US$454.2 million in quarterly sales, while analysts on average had projected US$441.6 million. So far in the third quarter, revenue is up 32 per cent from the same period a year earlier — far exceeding estimates, though Snap said the economic recovery is still unpredictable.
In the second quarter, Snap’s net loss widened to US$326 million, or 23 cents US a share, from US$255.2 million, or 19 cents US, a year earlier. Excluding certain items, the loss was nine cents US a share, compared with the average 10-cents-US loss projected by analysts.
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