nap Inc. has seen an influx of users thanks to the growing popularity of Augmented Reality filters and video content. Snap’s shares surged in after-hours trade in New York, after the company exceeded analyst expectations for the third quarter, as daily users of the Snapchat app continued to rise with a growing demand for its Augmented Reality filters and streamed content.
By the end of September Snapchat’s daily active users were up 4% on the second quarter and 18% higher than a year ago with Snapchat currently receiving 249 million daily active users, bypassing Twitter’s 186 million and TikTok 100 million daily users, however, Instagram still leads the race with 500 million daily active users.
The increase in daily users has significantly boosted revenue for the company, which for the recent quarter was $679 million, up 52% on the same period last year and significantly more than Wall Street’s estimated forecast of $555 million.
Another feature which has seen an increase in number of users was the ability to watch bite-sized videos of news, sports, scripted and unscripted shows, which increased the time spent on the app by over 50% year-over-year in the quarter.
The app has seen a surge in the use of new Augmented Reality filters, which can transform the user's face with the tap of a button. One Augmented Reality filter was used more than 3 billion times in its first week of launch.
The increase of users comes along with the recent launch of Local Lenses, which lets multiple users collaborate on the same Augmented Reality Experience.
In the recent financial earnings statement, CEO of Snap Evan Spiegel commented:
“Our focus on delivering value for our community and advertising partners is yielding positive results during this challenging time,”
“We’re excited about the growth of our business in Q3 as we continue to make long-term investments in our future. The adoption of augmented reality is happening faster than we had previously anticipated, and we are working together as a team to execute on the many opportunities in front of us.”