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| Snapchat exceeds user growth expectations |
With the coronavirus epidemic, more and more people are signing up to chat with relatives and friends, and Snapchat has exceeded expectations for user growth and revenue.
The company said in a statement that the number of daily active users (DAU) for the quarter ended September 30 rose 18% year-on-year to 249 million, compared to 238 million in the fourth quarter. This was influenced by investors and advertisers. Great interest.
Snapchat expects user growth to continue its momentum and forecast about 257 million daily active users in the fourth quarter.
Most of the revenue came from advertising sales through apps, which rose 52% to $ 678 million, well above the analyst's estimate of $ 555.9 million.
Snapchat is a safe place to advertise for brands as it focuses on individual posts that disappear immediately after reading.
In the third quarter, reputation played a good role in the app, and more than 1,000 Facebook advertisers boycotted it in July.
Due to national safety concerns, the popular TikTok short video app may be subject to a US ban, which is also useful.
"This will give the company an opportunity to review ad spend and drive Snap's revenue growth," said Jeremy Gorman, Snap's chief commercial officer.
Snapchat offers unique advertising services such as augmented reality ads.
Snap CEO Evan Spiegel said the app has expanded its user base outside of the US and Europe by working with local communication providers and setting up features like image filters and local destinations.
He added: Augmented reality is being adopted faster than expected, and we are working together as a team to realize the many possibilities that lie ahead.
The net loss from Snapchat's loss increased to $ 199.8 million, up from $ 22.737 million the previous year.
The app said: Revenue could increase 47% to 50% this quarter compared to the same period last year, but warned of the impact of the outbreak on holiday ads when it ends. The year is not clear.
The animation filter converts people into cartoons and was used more than 3 billion times in the first week after its release.