During its third-quarter earnings call on Tuesday, Snap Inc. SNAP highlighted strong growth in daily active users and promising early results from its new ad formats and “Simple Snapchat” layout.
What Happened: During the earnings call Snap’s CEO and co-founder Evan Spiegel, said that the daily active users on the platform have increased to 443 million, with significant engagement in international markets.
He went on to talk about “Simple Snapchat,” a major redesign focused on improving user experience through streamlined navigation and easier content discovery.
Announced at the company's annual Partner Summit, “Simple Snapchat” is currently in testing. Early results, particularly on Android, have been positive.
“Approximately 10 million Snapchatters using Simple Snapchat across dozens of countries,” said Spiegel.
The Snap CEO also discussed two new ad formats, Sponsored Snaps, and Promoted Places, saying that these are expected to fuel future revenue growth by offering more targeted ad placements.
Moreover, he said that small- and medium-sized businesses have shown strong adoption, contributing to a doubling of active advertisers year-over-year, thanks to new tools like Snap Promote and expanded Campaign API integrations.
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Why It Matters: Snap reported third-quarter revenue of $1.373 billion, surpassing the consensus estimate of $1.358 billion, according to Benzinga Pro.
The social media company also posted adjusted earnings of 8 cents per share, beating analyst expectations of 5 cents per share.
In September it was reported that Snap's stock had declined about 45% this year. In response, the company plans to launch new ad placements powered by machine learning and automation.
Last month, the company also unveiled smart glasses to bring AR technology to the physical world, further underscoring its commitment to AR.
The focus on ad business and augmented reality was announced by Spiegel earlier this year, amid stiff competition from major social media platforms like Meta Platforms Inc. META and ByteDance-owned TikTok.
Photo by Sergei Elagin on Shutterstock
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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