San Francisco The growth in the photo app Snapchat in the past quarter has impressed investors. The parent company’s share Snap jumped in after-hours trading on Tuesday at times by around a fifth.
Snap’s third-quarter revenue increased 52 percent year-over-year to $ 679 million. That clearly exceeded the expectations of the analysts – and can be a signal for a strong advertising business, even in the corona crisis. One concern in the market is that companies affected by the pandemic are scaling back their advertising and thus the business of Internet platforms is sagging.
The number of daily active Snapchat users rose from 238 to 249 million within three months. Bottom line, Snap, meanwhile, was still in the red of nearly $ 200 million – after a loss of a good $ 227 million a year earlier.
Snapchat was originally primarily known for images that disappear on their own, but is now increasingly trying to establish itself as a platform for media content.
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