Social media and camera company Snap Inc. (SNAP) announced its results for the third quarter of the year ended September 30. The company said in this pandemic period more new users have been signing up to its messaging app Snapchat to chat with their family members and friends.
In the third quarter, the company generated $679 million revenue from sale of ads denoting a 52% increase this largely surpassed the $555.9 million estimated by analysts.
The number of daily active users (DAUs) also increased to 249 million in the quarter indicating a 18% year-on-year increase. Analysts were expecting the number of daily active users for the company in the quarter to be 244 million.
Snapchat revised its estimates for the fourth quarter adjusting its user growth estimates to 257 million daily active users. The number is on a higher compared to the 249.81 million daily active users analysts have predicted for Snapchat in the fourth quarter.
The company is betting on it’s feature which allows one-on-one messages to disappear once they are read making it a safer place for brands to advertise.
Snap posted a net loss of $199.8 million or 14 cents per share which is on a lower side compared the loss of $227.37 or 16 cents per share the company reported in a similar quarter last year.