Snap Inc.’s revenue surged in the latest quarter, as the company attracted more advertisers to Snapchat in a bid to meet consumers who are spending more time online and on mobile devices due to the coronavirus pandemic.
Snapchat added 11 million users from the prior quarter to end the September period with 249 million daily active users. The user growth was well ahead of Wall Street analysts’ forecasts and showed that the platform could see strong engagement even with the emergence of TikTok and strong results earlier this year from Facebook Inc.’s networks.
Snap’s revenue rose 52% to $678.7 million, well ahead of analysts’ estimates of $557 million, according to a FactSet poll.
Chief Executive Evan Spiegel said that he was pleased with the company’s growth in the period and that it will continue long-term investments on things including augmented reality for its app.
Snap is among the first advertising-dependent companies to post results from the most recent period and its momentum could bode well for tech titans ahead of an extended holiday-shopping season.