With the coronavirus pandemic, much like the other industries, social media platforms like Facebook and Twitter became uncertain about its profitability. While of course, the chances were high that more people were going to spend their days going through everything on the newsfeed, it was expected that advertisers would cut out the cost to combat the crisis.
However, that assumption certainly didn’t turn out wholely true in Snapchat’s case. Just when the company has created a record of highest number of users on the platform, there was another surprising news that its earnings have also been better than expected - all because of a surge in advertising revenue in the COVID-19 time.
Snap Inc. reported a revenue of $462.5 million on Tuesday, April 21. This, in total, is a 44% gain when compared to last year. But with those digits too, the company is yet to become profitable after being listed on the IPO in 2017.
The daily users have also climbed up to 229 million making the digit appear as Snapchat’s highest number of daily average users to date. Much of the increase has happened during the COVID-19 pandemic as when schools and businesses got closed down during the first three months of 2020, 11 million global users joined Snapchat to pass time.
The numbers related to communication on Snapchat also sky-rocketed with more than 4 billion snaps being created every day throughout the first quarter. The platform also became a hub of friends, much like the way Snapchat always wanted, as there was a thirty percent increase in communication in the last week of March. In fact in some countries where the coronavirus has just recently started to impact the population, the communication graph rose up by 50% as well.
More people loved the idea of synchronizing, Snap Camera with video platforms like Zoom and therefore the daily downloads of the desktop app also went up by 30% in the first quarter of this harsh year 2020.
The journey of this fantastic success in the Q1so far hasn’t been easy for Snapchat as the AR-based app started losing a lot of millennial and Generation Z users when Instagram and TikTok got up to give tough competition. Once the platform saw some kind of stability in users coming back in February 2019, experts and executives started predicting that growth for Snapchat would only be possible in markets like South America and Asia. But the COVID-19 came as a blessing in disguise for them and the growth of 11 million users this year so far has been evenly distributed as 3 million came from Europe, 2 million came from North America, and 7 million came from the rest of the world.
This hike in numbers has also impressed advertisers who at the moment seem to be trusting the platform more for reaching out to the consumers right onto their screens almost every hour - at least that’s what the numbers suggest. Besides that, not to forget this result for the company has also come at a time when Facebook, Google, and Twitter all had to face a short-term slump in ad sales.
That being said, as the world’s economy is still uncertain for a few upcoming months, Snapchat can finally enjoy their dominance for a while.
Photo: Getty Images
Read next: Facebook tops the charts, while Instagram and Twitter follow suit amid the Coronavirus pandemic 2020
However, that assumption certainly didn’t turn out wholely true in Snapchat’s case. Just when the company has created a record of highest number of users on the platform, there was another surprising news that its earnings have also been better than expected - all because of a surge in advertising revenue in the COVID-19 time.
Snap Inc. reported a revenue of $462.5 million on Tuesday, April 21. This, in total, is a 44% gain when compared to last year. But with those digits too, the company is yet to become profitable after being listed on the IPO in 2017.
The daily users have also climbed up to 229 million making the digit appear as Snapchat’s highest number of daily average users to date. Much of the increase has happened during the COVID-19 pandemic as when schools and businesses got closed down during the first three months of 2020, 11 million global users joined Snapchat to pass time.
The numbers related to communication on Snapchat also sky-rocketed with more than 4 billion snaps being created every day throughout the first quarter. The platform also became a hub of friends, much like the way Snapchat always wanted, as there was a thirty percent increase in communication in the last week of March. In fact in some countries where the coronavirus has just recently started to impact the population, the communication graph rose up by 50% as well.
More people loved the idea of synchronizing, Snap Camera with video platforms like Zoom and therefore the daily downloads of the desktop app also went up by 30% in the first quarter of this harsh year 2020.
The journey of this fantastic success in the Q1so far hasn’t been easy for Snapchat as the AR-based app started losing a lot of millennial and Generation Z users when Instagram and TikTok got up to give tough competition. Once the platform saw some kind of stability in users coming back in February 2019, experts and executives started predicting that growth for Snapchat would only be possible in markets like South America and Asia. But the COVID-19 came as a blessing in disguise for them and the growth of 11 million users this year so far has been evenly distributed as 3 million came from Europe, 2 million came from North America, and 7 million came from the rest of the world.
This hike in numbers has also impressed advertisers who at the moment seem to be trusting the platform more for reaching out to the consumers right onto their screens almost every hour - at least that’s what the numbers suggest. Besides that, not to forget this result for the company has also come at a time when Facebook, Google, and Twitter all had to face a short-term slump in ad sales.
That being said, as the world’s economy is still uncertain for a few upcoming months, Snapchat can finally enjoy their dominance for a while.
Photo: Getty Images
Read next: Facebook tops the charts, while Instagram and Twitter follow suit amid the Coronavirus pandemic 2020
