Snap Inc (SNAP) on Thursday topped Wall Street estimates for both user and revenue growth in the second quarter bringing the company with the highest growth rates since the end of 2017. New features propelled its growth attracting more users.
Guidance for the current quarter is reported to be above expectations.
Snapchat allows users post social updates and stories that disappear in 24 hours. The company also allows users to load short form videos that can go viral. Advertising growth has been strong at Snapchat due to a short clip videos that keep users engaged.
Shares of Santa Monica, California-based Snap rose about 10% to $69.20 in extended trading, after its forecast for the current quarter also came in above expectations.
Active daily active users showed a gain of 23% to 293 million during the quarter ending June 30. This increase was above analysts’ estimates of 290.3 million.
Snap’s revenue climbed 116% to $982 million, above analysts’ expectations of $845.9 million.
Snapchat purchased Vertebrae, which lets brands create and manage 3D versions of their goods. Snap did not disclose what it paid for Vertebrae, but the figure could have had been in the $500 million range for the acquisition of WaveOptics, the company that makes the AR displays in its Spectacles smart glasses.
Bloomberg reports, “Snap Inc. has struck a licensing deal with Vivendi SE’s Universal Music Group that gives its users access to thousands of songs, including tracks from Taylor Swift and Drake, in the latest tie-up between social-media giants and record labels.”
Forbes reports, “HBO Max is the first major streamer to build a snap mini. Starting to roll out today, Snapchatters in the U.S. can watch select episodes of award-winning HBO Max programming virtually alongside their friends for free through Snap Minis.”