![]() At its Partner Summit in May, Snapchat revealed an update that lets users scan friends’ outfits to find shopping recommendations for similar styles. This includes try-on capabilities for watches, jewelry, eyewear, handbags, makeup and even clothing. The app has developed AR experiences for Walt Disney World, Smile Direct Club, Zenni Optical, e.l.f. Spiegel specifically mentioned this lens as a feature that “highlighted the power of Lenses to go viral both inside and outside of Snapchat.” But beyond fun face filters, Snapchat has been using AR to woo e-commerce partners. Last month, Snapchat went viral for its Cartoon 3D Style Lens, which makes you look like a character in a Pixar movie. “More than 200 million Snapchatters engage with AR every day on average, and over 200,000 creators use Lens Studio to build AR Lenses for our community.” “We made significant progress with our augmented reality platform this quarter,” Spiegel said. As TikTok exploded on the scene and the creator economy boomed, Snapchat kept up by creating Spotlight, a TikTok clone, and investing in the applications of augmented reality. Like many social media platforms, Snapchat grew its revenue and user base during the pandemic, but this isn’t just a matter of re-engaging users with an app that they grew out of. The app’s Q2 growth could be attributed to the return of advertisers who scaled back their spending during the height of the pandemic, as well as the retention of users that flocked to the app while in lockdown. Now, Snapchat’s revenue in Q2 of 2021 surpasses its previous high to reach $982 million. Its revenue reached an all-time high of $911 million in Q4 of 2020, then went down to $770 million the following quarter. If augmented reality continues to take off, Snap could see its user base skyrocket pretty quickly.ĭisclaimer: Author holds no investment position in Snap at the time of writing.Sooo does anyone else not open Snapchat anymore? Or is it just me… ugh this is so sad.īut Snapchat held on and made a comeback. It’s clear from the company’s forward guidance that 2019 is shaping up to be a year of transition for the social media platform. Whether this is enough to justify its lofty valuation is still too early to tell. As Michael Nathanson recently pointed out, the company’s forward revenue multiple is probably around 11, giving it “one of the richest valuations we have ever seen.”Īfter a year of doom-and-gloom, it’s pretty obvious that Snap has turned things around at an operational level. Some analysts are concerned that the company is still vastly overvalued. The stock has more than tripled in value this year and is up 253% from its December low of $4.99.Īt current values, Snap has a total market capitalization of $23.8 billion. SNAP is now trading at its highest level since Feb. It marked the first time in over a year that the company’s stock closed above the IPO price. ![]() Snap’s stock price launched through the stratosphere on Wednesday, gaining 18.8% to $17.61. It also expects between 205 and 207 million daily active users, well above the median 195.5 million expected. The company now expects to generate as much as $435 million in revenue this quarter. This time last year, Snap’s daily user base had shrunk to 188 million from 191 million.Īn increase in daily active users, combined with declining unit costs, allowed Snap to increase its gross margin to 46% from 30% a year earlier. As a result, Snap managed to grow its daily active users to 203 million. A key part of that transition brought Snap back full circle: Instead of trying to attract all users, the company zeroed in on its core base of younger people. Analysts in a median estimate were expecting a loss of $0.10 per share on revenues of $369.7 million, according to Refinitiv.Įvan Spiegel, Snap’s CEO, said the strong quarterly results reflect “several transitions” completed over the past 18 months. Snap, the parent company behind Snapchat, reported a second-quarter loss of $0.06 per share on revenue of $388 million. By focusing on its core base of younger people, Snap managed to grow its daily active users to 203 million from 188 million a year ago.
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