Widely used multimedia messaging app Snapchat slightly missed its target for daily active users in the second quarter of the year. This information was revealed by the mother company of the app Snap Inc. (SNAP) as it was reporting its results for the second quarter ended June 30.
Analysts had anticipated daily active users of Snapchat to increase to 238.44 million in the second quarter. However, the company said in the second quarter the number increased to 238 million denoting a 17% increase.
Similarly, revenue from ad sale also increased by 17% to $454.2 million in the quarter. This was on a higher side compared to the $440.8 million predicted by analysts.
Snap is counting on adverts to increase its growth as it seeks to boost its financials from ad revenue. Many companies have been scaling down on marketing costs due to the pandemic which has crippled many business operations.
Recently, giant social media network Facebook Inc. (FB) found itself on the wrong side after it failed to take measures which would limit circulation of President’s Trump inciting posts across its various platform.
This resulted to more than 1,000 companies pausing advertising on Facebook platforms. Snap now sees itself as a safer and better option for advertising since it focuses on friendly interactions.
“The growing focus on brand safety and privacy across the entire industry places us in a unique position of strength as we have invested in these areas from the beginning of our business,” said Snap’s CEO Evan Spiegel.