Snapchat Parent To Add 5 New Games This Year, Highlights Augmented Reality Push

Snapchat parent company Snap Inc. SNAP said it has made significant progress with its augmented reality platform in the second quarter. It will also add five new games to Snap Games this year.

What Happened: Snap CEO Evan Spiegel made the comments during the company’s second-quarter earnings conference call on Thursday. The company reported quarterly earnings and revenue that beat analysts’ estimates.

Spiegel noted that more than 200 million users engage with AR on a daily basis, while over 200,000 creators use Lens Studio to build AR Lenses for the Snap community. He added that the company is investing heavily in AR across Snapchat, Camera Kit, and Spectacles.

Snap said it plans to add new titles and genres to its Snap Games gaming platform, with video game developer Voodoo launching five new games to Snapchat this year.

Snap is collaborating with several partners, including Walt Disney Company DIS, to power AR experiences in their own applications with Camera Kit. In addition, the company is leveraging its investments in AR for an “improved online shopping experience.”

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Why It Matters: Snap has been boosting its investments in AR over the past few years.

In April, the company unveiled an augmented-reality version of its Spectacles smart glasses that will enable the wearer to view AR effects without the need to use a smartphone’s camera. However, it is available exclusively for creators.

The new Spectacles highlighted Snap’s intensified push into hardware as it deals with stiff competition from companies such as Facebook Inc. FB and Apple Inc. AAPL that have intensified their focus on the AR/VR segment in recent years.

Gaming is also becoming a hot area for competition among growth-oriented technology companies, with Netflix Inc. NFLX becoming the latest entrant.

Price Action: Snap closed almost 0.7% lower in Thursday’s regular trading session at $62.97, but rose almost 17.7% in the after-hours session to $74.10.

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