Santa Monica’s Snap beats Q2 estimates with highest growth in four years; shares soar

by   |  VIEW 595

Santa Monica’s Snap beats Q2 estimates with highest growth in four years; shares soar

Snap Inc., the Santa Monica, California-headquartered American social media company founded back in the 2011s, had beaten Wall Street estimates for users and revenues in fiscal Q2, 2021, and had scaled the highest growth rate since late-2017 as an introduction of a number of new features at its messaging app Snapchat appeared to have lured in more users than anticipated, the company said later last week.

On top of that, followed by an upbeat quarterly earnings’ report for fiscal second quarter of 2021, shares’ prices of the Californian social media company had wrapped up Friday’s Wall Street 23.82 per cent higher to $77.97 apiece after surging roughly 22 per cent in pre-market trading, while on the week, Snap Inc shares had skyrocketed 34.71 per cent.

In point of fact, a meteoric upsurge in traffics on Snapchat platform, widely known for its Stories feature where users’ posts automatically disappear after 24 hours, came forth as the social media company had revamped its app into five parts which in effect had enabled the users to post media contents alongside short video clips, eventually engaging a higher traffic and bringing in a torrential high-tide in advertisement revenues.

Snap beats quarterly estimates for users, revenues

According to Snap Inc’s quarterly earnings’ report released later last week, the social media company’s daily active users grew by 23 per cent to 293 million during the second quarter of 2021, above an analysts’ estimate of 290.3 million, IBES data from Refinitiv had unveiled.

Alongside this, Snap Inc’s revenues had climbed as much as 116 per cent to $982 million that had handily beaten Wall Street estimates of $845.9 million on an average while remarking its strongest quarterly growth ever.

Apart from that, the Californian social media company had forecasted its third-quarter revenue between $1.07 billion and $1.09 billion, while the company had been anticipating its active user-base to grow by 21 per cent to 301 million during Q3, 2021.