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Snap Sees Strong User Growth as Pandemic Restrictions Ease

by Bioreports

Snap Inc.’s revenue more than doubled in the second quarter and user growth jumped the most in four years, as people continued to flock to the social-media app despite a return to more normal daily routines.

The company projects revenue in the current quarter will climb as much as 60% as its pandemic-era popularity continues, even as the health crisis wanes.

The Santa Monica, Calif.-based company said Thursday its closely watched daily active user figure reached 293 million in the second quarter, exceeding the roughly 290 million Wall Street was expecting. Snap had 238 million active daily users in the year-ago period.

Snap shares were up more than 10% in after-hours trading on Thursday. They have more than doubled over the past year.

The company, best known for disappearing photos and messages on its Snapchat app that is popular with teens and young adults, has impressed investors with its growth during the pandemic, outpacing much larger rivals. It has introduced new features to appeal to businesses beyond traditional social-media advertising, including a push into augmented reality.

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