Shares of Snap (SNAP) jumped early on Wednesday as higher sales helped the US technology and camera firm narrow its net loss in the second quarter, beating expectations, and the group forecast further growth in revenue over the next three months.
Sales surged by 48% to $388.0 million during the three months that ended June 30, from $262.3 million a year ago, beating the $358.4 million average analyst estimate compiled by Capital IQ.
The company said in its earnings statement late on Tuesday that it has added 13 million daily active users in the second quarter and saw increased engagement across key metrics such as the average number of Snaps being created every day growing to more than 3.5 billion.
Receive News & Ratings Via Email - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings with MarketBeat.com's FREE daily email newsletter.
Furthermore, the firm has continued to invest in its Discover platform, which has seen the daily audience watching content growing by more than 35% year-over-year, as well as invest in its augmented reality platform. Snap recently launched the next generation of Augmented Reality Lenses that use deep neural networks to modify a person’s appearance in real-time, and “over 200 million Snapchatters played with these new lenses in the first two weeks.”
“The growth in our community, engagement, and revenue is the result of several transitions we completed over the past 18 months,” Chief Executive Officer Evan Spiegel said in the statement. “We look forward to building on our momentum and making significant ongoing progress in each of these areas.”
Given that Snap’s cost of revenue and research and development expenses cumulatively remain above group sales, the firm reported an adjusted net loss of $0.06 per share. That loss was, however, narrower than a net loss of $0.14 per share recorded a year earlier and also smaller than the Street’s view for a net loss of $0.10 per share.