Snap shocks analysts as millions flock to the platform during pandemic

22 Apr 2020228 Views

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Snap’s latest earnings report shows the number of daily users has grown considerably, boosting revenues by 44pc.

With millions of people across the world turning to the internet to occupy them at home during the coronavirus pandemic, Snap is attracting a significant number of users.

According to its earnings report, the company’s revenues for the first quarter of 2020 amounted to $462m, up more than 44pc from $320m it made this time last year.

This has been driven by its daily active user total reaching 229m during the quarter, marking an increase of 39m or 20pc year-on-year. This is the highest user growth seen on the platform since the second quarter of 2017.

On average, more than 4bn snaps were created each day in the quarter, with viewing time on its Discover platform almost doubling from this time last year. The company also reported the number of downloads of its Snap Camera app for desktop is 30 times higher than normal since movement restrictions were announced across the world.

‘Helping people stay close to their friends’

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The desktop app allows people to use its various lenses found on the Snapchat app with a range of videoconferencing and livestreaming services. Communication with friends on the platform also increased by more than 30pc in the last week of March compared to the last week of January. This increased to more than 50pc in parts of the world that were most impacted by the pandemic, Snap said.

Speaking of Snap’s performance, the company’s CEO, Evan Spiegel, said: “We are grateful for the opportunity to serve our community and partners during this difficult time.

“Snapchat is helping people stay close to their friends and family while they are separated physically, and I am proud of our team for overcoming the many challenges of working from home during this time while we continue to grow our business and support those who are impacted by Covid-19.”

According to CNBC, Snap’s share price jumped by up to 20pc in after-hours trading as its revenues beat analyst estimates of $428.8m.

Colm Gorey is a senior journalist with Siliconrepublic.com

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