Snapchat’s company, Snap Inc. overwhelmed the estimates for its user growth made by Wall Street on Thursday.
Snap Inc., the company behind Snapchat reported that the growth and revenue for the popular smartphone application shot as it introduced its new and improved Android version. The change brought in more users, albeit slowing down within the areas of North America.
The shares for Snap stocks skyrocketed to 3.5% after the improvement was made. Moreover, the DAUs or the number of daily active users rose by 22% year by year up to 280 million in its first quarter alone. This metric has been closely monitored by the investors and advertisers, hence it has become a bigger deal more than ever.
Analysts, on the other hand, had only projected about 275.3 million, according to the reports made by IBES data.
A huge chunk of the user growth alludes to the users outside the areas of North America, which rose 57% from the previous quarter of the year.
Of course, this is attributed to its rebuilding of the Android version, as back in 2018 it faced various technical challenges and bugs. Today, Snapchat’s version for Android users currently surpasses the user base for Apple iOS. The company noted that this is the first time that such a feat has happened.
Snapchat also notably added various languages to support and cater to the needs of Android users outside of the United States. It has also provided a number of media content that leans toward the users in various countries.
In terms of its revenue, which Snap usually acquires from its advertising, significantly shot by 66% to about $770 million in the first quarter of the year, which ended on March 31. The numbers outshone the consensus made by Wall Street in its estimate of only $743 million snap earnings.
This is also due to the increase in investment by Snap in its technology for augmented reality, in the belief that it can contribute to the marketing of products by brands, such as makeup and clothes to young audiences.
In fact, last March, the company acquired Fit Analytics, which is a tech company that assists users virtually to determine whether certain clothing is the right fit for them.
The rise in Snap’s revenue narrowed the loss to about $286.9 million, which equates to 19 cents per share, and from $305.9 million, which equates to 21 cents per share
For its second-quarter forecast regarding its daily active users, Snap projects growth by 22% up to 290 million, along with revenue in between $820 million up to $840 million.
While the snap earnings are still hot, investors might think about the Snap stock price
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The growth for Snap stocks and Snap earnings due to its improved version for Android users is a mark of how influential the use of Android phones can be. Make sure to get yours like Nokia 7.2 – Android 9.0 Pie or Black Shark 3 Gaming 5G Phone, 6.67-inch Cell Phone, Android 10.