Snap beats Wall Street expectations for user and revenue growth By Reuters

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© Reuters. FILE PHOTO: A portrait of the Snapchat logo in Ventura

By Sheila Dang (Reuters) – Snap Inc (NYSE :), owner of the popular photo messaging app Snapchat, beat analyst estimates for both user growth and revenue on Thursday as the coronavirus pandemic sparked that more people will use the application to connect with friends. Daily Active Users (DAU), a metric watched by investors and advertisers, increased 22% year-over-year to 265 million in the fourth quarter ended December 31. Analysts were expecting $ 258 million, according to IBES data from Refinitiv. The app made the most progress in regions outside of North America and Europe, with a 55% growth in daily active users. Revenue, which Snap generates primarily from the sale of ads, grew 62% to $ 911 million, easily beating the Wall Street consensus estimate of $ 857.4 million. Advertisers have been drawn to Snap‘s large young user base, and the company has invested in developing features that appeal to brands like Snap Map, which allows users to find local businesses near them. “As the global health crisis is addressed and the world begins to reopen, we see opportunities to help strengthen the ties of the Snapchat community around the world,” said Snap CEO Evan Spiegel in prepared remarks. for release prior to an earnings call with analysts. . Snap‘s net loss fell to $ 113 million, or 8 cents a share, from $ 240.7 million, or 17 cents a share, a year earlier. The company forecast that first-quarter daily active users will grow 20% over the prior year period to 275 million, and revenue will be between $ 720 million and $ 740 million. Snap said the privacy changes planned by Apple Inc (NASDAQ :), which will ask iPhone users to consent to personalized ads, could present a “risk” to advertiser demand, but added that it was unclear. how the changes could affect Snap‘s business in the long term. -run.

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