Snapchat Beats 2019 Financial Expectations with Seven Million New Users
Snapchat proved itself to be a big social media competitor by increasing profits in the third-quarter Financial Expectation Report 2019.
The popular photo-sharing application added seven million daily active users totalling up to 210 million users. This is a 13% increase year-over-year.
The application also saw higher revenue this quarter with $446 million meaning a 50% year-over-year increase and only a loss of $0.04 EPS. Bloomberg’s consensus of Wall Street only estimated $437.9 in revenue and $0.05 EPS loss but the real number proved them wrong.
Snapchat revenue in third quarter:— Jon Erlichman (@JonErlichman) ٢٢ أكتوبر ٢٠١٩
Q3 2019: $446.2 million
Q3 2018: $297.7 million
Q3 2017: $207.9 million
Q3 2016: $128.2 million
Q3 2015: $16.7 million
Moreover, Snap shares are up to 150% this year and the net loss decreased by $98 million compared the numbers in Q3 2018.
Snap CEO Evan Spiegal said that the company is making constant improvements towards increasing their numbers.
“We are a high growth business, with strong operating leverage, a clear path to profitability, a distinct vision for the future, and the ability to invest over the long term,” Spiegel said in a statement. “We are excited about executing on the many opportunities in front of us.”
Another major improvement in Snapchat is the Discover page in which the viewership grew 40% year-over-year. More than 100 Discover channels received over 10 million viewers per month in Q3.
The Snapchat Discover page remains to be the app’s unique and most popular feature compared to Instagram’s IGTV that had a similar concept but flopped.
However, TikTok proves to be more of a competitor than Instagram with its rapidly increasing popularity and viral hits but Snapchat does not see that as a problem. In fact, the app allows TikTok to buy adfs on Snapchat.
“We definitely see TikTok as a friend,” Spiegal said. ““The value they provide their community is very different than the value we provide ours to really empower communications with real friends.”
Compared to 2018, Snapchat made a comeback this year. They believes that in the fourth quarter, the revenue is expected to be $540 million to $560 million due to higher demand during Black Friday and the end of the holiday shopping season.
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