Snap Inc. has been slowly reviving its ship lately, slowing its users' share prices and exodus. The Snapchat developer's earnings for the second quarter of 201
Since the company's IPO in March 2017, Snap has had a hard time pinpointing it. As of April this year, more people used the Instagram feature "Snapchat Stories" than Snap. The company's stock fell into free fall following a depressing first quarter report last year, in which the company missed its earnings guidance of $ 244 by more than $ 13 million. A reshaping last May that was highly despised by users had little negative impact on investors, and as the company did not report significant new generators of ad revenue or user growth in the same quarter, stock prices plummeted again. From its debut price of $ 17, the shares reached an all-time low of $ 4.99 in December. Ow.
But in 2019, the company made a comeback to take on Robert Downey Jr. With Snap successfully maintaining its users by the end of 2018, the number of daily active users increased for the second quarter in a row, reaching 13 million for a total of 203 million. This is an increase of 8 percent since last year.
Sales were similarly surprised and exceeded expectations. They were $ 388 million, an increase of nearly 50 percent since that time last year. The company's losses in the second quarter were also not quite as bad as expected, and this is apparently enough to gain investor confidence: Snaps shares rose more than 12 percent to $ 16.17 after the company released its earnings reports would have.
CNET wrote that Snaps focus is focused on the satisfaction of his young users and AR technicians. Although the unfortunate Snapchat redesign was popular with older users, the company threw it out to satisfy the core fans of the platform, of which 1.2 million signed a petition against the change. Evan Spiegel, CEO of Snap, later wrote in a memo to employees that the company would get rid of its gap by focusing on what initially made Snapchat successful and "relentlessly focused on finding the fastest path to Communication. "
An approach that helps Make Snapchat a dominant force among young smartphone users. According to a 2018 survey by Pew Research, 69 percent of American teenagers between the ages of 13 and 17 use the platform, and more than a third said they use more of all other social media platforms.
And it turns out that Generation Z is absolutely up to date. They love using Snapchat AR lenses to hide rainbows, swap genders, or watch hotdogs dancing in the living room. As part of its ongoing investment in improving AR on the platform, Snapchat has recently launched the latest generation of lenses that 200 million people have played in the first week, according to Snaps report. Lenses' exposure to this quarter has exceeded last year's exposure. The number of users submitting new lenses every month also rose 20 percent this quarter, according to the company's earnings report.
With the company's increased revenue this quarter, advertisers do not seem to be ignoring this success. Snap also launched some new tools for advertisers that appear to be well received: Snap Select, a way to run non-skippable commercials within curated programming, and Instant Create, which allows creating ads for the platform over existing ones Access of a company is simplified.
When it comes to war to win the coveted youth, Snapchat seems to have discovered the secret and its silly videos and dancing hot dogs. Will it be enough for the company to avoid another bad year like 2018? At least they have at the moment the conclusion "Not fucked".